Whether companies are also liable for late filing penalty even though there is no income??

Whether companies are also liable for late filing penalty even though there is no income??

 470 total views

Whether companies are also liable for late filing penalty even though there is no income??

 

Answer:   

 

Section 139 will provide the guidelines to file the returns.

Under Section 139(1), in the following cases the filing of Income Tax Return is Mandatory:

  • Every person who has a total income that exceeds the exemption limit is liable to furnish Income Tax Return within the due date.

 

  • Any private, public, domestic or foreign country located and/or doing business in India.

 

 

  • Any firm including LLP (Limited Liability Partnership) or Unlimited Liability Partnership.

 

  • Any resident who has an asset located outside of India (might include financial interest in some entity as well) OR any resident who retains signing authority for an account based outside India – for all these cases Tax return needs to be filed mandatorily in the prescribed form irrespective of the amount of tax liability on those incomes.

 

 

  • Every HUF (Hindu Undivided Family), AOP (Association of Persons) and BOI (Body of Individuals) – if the total income of these bodies or entities exceeds the prescribed exception limit, they are liable to file the Income Tax Return in the prescribed format with required documentation

 

Penalty you will pay for missing ITR filing deadline

 

A taxpayer is liable to pay late ITR filing fees of:

 

  1. a) Rs 5,000 if tax return is filed after the deadline but on or before December 31 of the relevant assessment year. 

  2. b) Rs 10,000 if tax return is filed after December 31 but before the end the relevant assessment year, i.e., before March 31.

 

(If you are a small taxpayer whose gross total income does not exceed Rs 5 lakh then the maximum fees you are liable to pay is Rs 1,000.) 

 

  Who won’t have to pay 
 

A person whose gross total income does not exceed the basic exemption limit files a late return, he/she will not be liable to pay penalty. For F.Y2017-18, the basic exemption limit for resident individuals below the age of 60 years is Rs 2.5 lakh. For senior citizens aged 60 years and above but below 80 years, income up to Rs 3 lakh is exempted from tax. For super senior citizens i.e. of age 80 years and above, the basic exemption limit is up to Rs 5 lakh.


Note:(“Gross total income as mentioned refers to the total income before taking into account the tax exemptions available on the incomes specified under section 10(38) and deductions under section 80C to 80U of the I-T Act”)


 Who have to pay 

Following persons have to mandatorily file ITR:

 (a) a company or a firm/LLP irrespective of quantum of income and

 (b) any other person only if his total income exceeds the maximum amount not chargeable to tax, i.e., basic exemption limit.” 

 

 Conclusion:

 

Thus, in case of a company it is mandatory to file return of income irrespective of income earned  therefore there will  be penalty for late filing of return i.e. 
a) Rs 5,000 if tax return is filed after the deadline but on or before December 31 of the relevant assessment year . 

  1. b) Rs 10,000 if tax return is filed after December 31 but before the end the relevant assessment year, i.e., before March 31.

 

(If you are a small taxpayer whose gross total income does not exceed Rs 5 lakh then the maximum fees you are liable to pay is Rs 1,000.)  
                  

In any other case it depends on quantum of income earned. Also in case where there is no obligation to file income tax return the question of late filing fees does not arise even though they file return after the due dates.

 

Priyanka Sharma

 

 
Regards

Team SSRPN

M/s. SSRPN & CO.

10, Laxmi Vyankatesh Apartment

C.A. Road, Telephone Exchange Square

Nagpur-440008.

 

www.ssrpn.com

 

Phone No. 2735479, 6549611

Cell No. 094228-60300

 

Leave a Comment

Your email address will not be published.

the taxtalk

online portal for tax news, update, judgment, article, circular, income tax, gst, notification Simplifying the tax and tax laws is the main motto of the team tax talk, solving