Discover The Details About Late Fees On Late Tax Return Filing
Did you know that late income tax filing may cost you late fees? We are here to tell you all about it and why you must file the income tax return on time.
MCQ SELF CHALLENGE # 0064 ON LATE FEES ON LATE FILING OF TAX RETURN
Late Fees on Late Filing of Tax Returns
Dear Professional Seniors & Friends.
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Here is the Next post of #MCQ on concept-based practical professional knowledge on late fees on late filing of tax returns in a unique manner to be seif answered by participants. The detailed answers to these MCQs shall be posted the next day for the self-assessment of the participants.
MCQ 64,1: An individual (age below 60 years) having a Gross total income of Rs. 2,48,000 and no deductions under chapter VI-A filed an income tax return on the 5th of Oct, 2017. Which among the following is correct about late fees assuming the due date to file a return is 31st July 2017?
A) Late Fees of Rs 1,000 shall be levied.
B) Late Fees of Rs 10,000 shall be levied.
C) Late Fees of Rs 5,000 shall be levied.
D) No Late Fees shall be levied.
MCQ 64.2: What if in the above question, the assessee filed the return on the 5th of Jan, 20182
A) Late Fees of 1,000 shall be levied.
B) Late Fees of Rs 10,000 shall be levied.
C) Late Fees of Rs 5,000 shall be levied.
Dy No Late Fees shall be levied.
Answer MCQ Self Challenge # 0064
This post of MCQ is on the concept relating to no late fees applicable under Section 234F despite the late filing of the income tax returns.
Answer to MCQ 64,1:0) No Late Fees shall be levied.
Answer to MCQ 64.2-D) No Late Fees shall be levied.
Practical Analysis for MCQ 64.1 & 64.2:-
1. Section 271F provides for late fees in case a person is required to file a return under Sec 139 files after the due date from AY 2018-19 which is as follows-
Case Late Fees if total income of person exceeds Rs 5 Lakhis Late Fees if total income of person does not exceed Rs 5 Lakhs
Return is filed on or before 31st
December 2018 but after the due date i.e Rs.5,000 Rs. 1,000
31st July 2018
Return is filed after 31 Dec 2018 Rs. 10,000 Rs. 1,000
2. The point here to note is that late fees will be applicable only when a person is required to file a return as per Section 139 and file the return after the due date. (Applicable from AY 2018-19)
3. So whoever is not required to file a return mandatorily as per Section 139 can tile their return even after the due date with no late fees
4. As per Section 139, every person (individual) whose total income exceeds the maximum amount not chargeable to tax shall be required to file an income tax return
5. Based on the above analysis, the correct answer MCQ 18.642: D) No Late Fees shall be levied since in our question person's total income is Rs 2.48,000 which is less than the maximum amount not chargeable to tax not required to file a return under Section 139 and the tax return in our MCQ relates to AY 2017-18 while amendments in Section-271F is applicable from AY 2018-19 so not liable to late fees under Section 271F.
(Disclaimer: The objective of the MCQ post is just to discuss the concept, it may happen, by change of facts, the answer may be different. Please do not treat this as a professional opinion you can have your own opinion.
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CA Sanjay Kumar Agrawal
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