As we all are aware that the Finance Act, 2018 has made a tremendous amendment in Section 271F. As per amendment, if a person who is required to furnish a return of his income under Section 139 of Income TAx Act, 1961, fails to furnish such return before the end of the relevant assessment year, the assessing officer may levy a penalty. Details of Penalty which can be levied under Section 271FA is as follows:
| Date of Filing Income Tax Return |
Penalty under Section 271FA |
| If the return is furnished after the due date of filing but on or before the 31st day of December | Rs. 5,000 |
| In any other case i.e if file after 31st December | Rs. 10,000 |
| Note: If the total income of the person does not exceed Rs. 5,00,000/-, the penalty payable under this section shall not exceed Rs. 1,000/-. | |
Since the 31st December, 2019 is already over and we are welcoming a brand new year i.e. January 2020, now taxpayer should keep in mind that if they are filing their belated return for AY 2019-20 anytime from 1st January, 2020 to 31st March, 2020 they will be liable for Penalty of Rs. 10,000/- under section 271F (If the total income of the person does not exceed Rs. 5,00,000/-, the penalty payable under this section shall not exceed Rs. 1,000/-).
Further, please keep in mind that the last date of filing the belated return for AY 2019-20 will be 31st March, 2020.
Also if you make a mistake while filing of return for AY 2019-2020, then you would have time till 31 March, 2020 only to file your revised return.
Thus, taxpayer is advice to gear up and file their income tax return as soon as possible before 31 March, 2020 in order to avoid any other unnecessary penalties and prosecution.
(Author is President, Patiala Tax Bar Association and Vice President, Punjab Tax Bar Association)
(Republished with Amendments)
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