Late fees for delay in filing return and payment of advance tax

Late fees for delay in filing return and payment of advance tax

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Late fees for delay in filing return and payment of advance tax

 

Section 234A of Income Tax Act 1961

If the taxpayer files the return of income after the due date specified under section 139 of Income Tax Act 1961 than interest under section 234A will be levied @ 1% per month or part of month on the tax amount.

Section 139 of Income Tax Act 1961: Due date of filing of return

  • All persons who are not required to get their books of accounts audited are required to file their income tax returns by the 31st of July of every assessment year.
  • All persons who are required to or who are liable to get their books of accounts audited are required to file their income tax returns by the 30th of September of every assessment year.

 

Section 234B of Income Tax Act 1961

If the taxpayer has failed to pay advance tax or if the advance tax paid by the taxpayer is less than 90% of the assessed tax than interest under section 234 of Income Tax Act 1961 is levied @ 1% per month.

Section 234C of Income Tax Act 1961

If the advance tax is not paid before due date than interest is levied @ 1% per month or part of month.

Due dates for Advance Tax

  • In case of all assessee except covered u/s 44 AD / 44ADA :
On or before 15th June Not less than 15% of advance tax liability
On or before 15th September Not less than 45% of advance tax liability less amount already paid in earlier installment.
On or before 15th December Not less than 75% of advance tax liability less amount already paid in earlier installment.
On or before 15th March 100% of advance tax liability less amount already paid in earlier installment.

 

  • In case of all assessee covered u/s 44 AD /44ADA: On or before 15th March, 100% tax liability should be paid.

 

Section 234F of Income Tax Act 1961

Due date of filing return of income is 31st July. If return is delayed than penalty of Rs 5000 if filed after due date but before 31st December, otherwise Rs 10000 under section 234F subject to condition that income exceeds Rs 500000.

If income is less than Rs 500000 than penalty of Rs 1000 is leviable.


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