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income tax

Income tax department to refund late fee if wrongly charged!

18 Nov,2019

Description

The income tax department has conceded there has been an inadvertent error while processing income tax returns (ITR) of partners of firms whose accounts are liable to be audited. The taxman has assured that it will rectify the error on its own and expel the late fee charge.

Section 234F was introduced to ensure timely filing of returns of income. However, inadvertently, the ITR utility also levied the fees on the partners of the partnership firms, whose due date for ITR filing are linked with that of the partnership firm.  Now amending the inadvertent error, the Income-tax authorities have decided to remove the penalty charged u/s 234F.

Reversal of the late expense charged under segment 234F will be considered in the computation of amount payable or refund due, as the case may be, on account of processing of the return.

For the financial year 2018-19 (evaluation year 2019-20), all working accomplice of a firm whose records are required to be examined should document their ITR by September 30, 2019 which was later extended to October 31. For those living in Jammu and Kashmir and Ladakh, the last date has been additionally extended to November 30.

For other individual ITR filers, the last date was July 31 however was extended to August 31.

All persons including Individual, HUF, company, partnership firms, etc are liable to pay late filing fees under Section 234F, if the ITR is filed after their respective due dates. For those filing ITR after the due date but within 31 December are charged ?5,000 and the penalty increases to ?10,000 January onwards.

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