The Income Tax authority of India had set 31st August 2018 as the last date for filing income tax return pertaining to financial year 2017-18 for all assesses apart from those dwelling in Kerala without having to face hefty penalties. Thus, you can expect a stringent levy which can range up to 10000 INR if you file your returns post 31st August midnight. But this will not affect assesses who do not adhere to the deadlines if their income falls below the minimum taxable limit.
- The fine has been fixed at 5000 INR for assesses who file the return post deadline of 31st August but either on or before 31st December of the relevant assessment year which is 31st December in this case.
- The fine will hike to 10000 INR on the return being filed before the end of the relevant assessment year i.e. 31st March 2018 in this case but after 31st
Taxpayers, whose gross total income falls below 5 lakh INR shall be liable to pay the maximum penalty amount of 1000 INR only. Section 234F which implicates laws pertaining to levying late filing fees was introduced following an amendment in Budget 2017 and became effective from 2018-19 assessment year onwards. Herein it is imperative to note that assessment year refers to the year which immediately follows a relevant financial year in regards to which an ITR has been filed. Thus, the assessment year for 2017-18 financial year is 2018-19.
An example of a resident individual belonging to less than 60 years of age, is taken for explaining this whole scenario. It is assumed that he earns 1.5 lakh INR on long-term capital gains arising out of sale of equity-shares along with interest income of another 1.5 lakh INR in a financial year. Gains arising out of sale of equity oriented mutual fund or equity shares after being held for a span ranging more than 12 months have been kept completely exempt from the purview of taxation in 2017-18 FY. Hence, the total income of this assessee will be taken as 3 lakh INR and he shall be liable to pay penalty as discussed above in accordance with the provisions of 234F on filing belated return.