Amusing news for all taxpayers who didn’t file their Tax returns this year.Finance Minister, Arun Jaitley made it easy for small taxpayers saying that the penalty fee imposition would be from next fiscal year. According to the earlier news, an individual who does not pay income tax returns, on or before December 31st will be imposed with a penalty fee of Rs 5000 or Rs 10,000.
However, taxpayers need not worry; this will come in form from April 1, 2018. This penalty will not apply to tax returns filed for FY 2016-17, which the deadline is July 31, 2017. So you need to pay income tax returns in given due date.
The government has introduced new act called Income Tax act under the section 234F. The individual has to pay Rs 10,000 fine if your filing income tax return after specified due date in section 139(1) of the Act.
According to rules of government if taxpayers do not pay income tax returns and penalty had exceeded their due dates. Then under section 234F Act, simple interest levied at the rate of 1% per month will be assessed. It will be calculated from due date till the time of completion of assessment order passed by evaluating officer when taxpayers pay tax returns completely.
The penalty fee will be varying on the time periods delayed by taxpayers. If individual income returns are filed after the due date and paid returns before December 31st, they need to pay Rs 5,000. If it is filed after December 31st, they need to pay a penalty of Rs, 10,000.
The main reason for filing Income tax returns depends on FY that is the financial year; this refers to the year you earned income through various sources it may be your salary, rent and so on.
The present year FY is further combined with the preceding year financial year, and likewise, they make an estimation. You need to file your income tax returns according to the estimation applied by income tax rules.
The government said penalty would be applicable from the estimation started from April 1, 2018, onwards and if the taxpayers do not pay income tax returns within time than they need to pay fine or penalty.
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