ITR Filing: You need to be very careful while filing Income Tax Return because your mistake can lead to penalty.
At present, taxpayers are busy preparing to file Income Tax Return (ITR). Taxpayers are keeping an eye on every aspect which can help them in maximum deduction. But in the meantime it is also important to remember that if you do not file your ITR properly, you may have to pay a heavy penalty. According to the Income Tax website, if taxpayers do not complete certain tasks by the due date, they will be charged interest under sections 234A, 234B, 234C and 234D. These works include –
- Not filing ITR
- Non payment of advance tax
- Pay less amount
Section 234A
If the income tax return is filed after the due date or is not filed, then interest under section 234A will be charged on the taxpayer. During this period, simple interest will be charged at the rate of 1 percent per month or part thereof. If ITR is filed after the due date prescribed in section 139(1), interest will be charged for the period falling between the last due date and the date of ITR filed.
Section 234B
- Interest will be charged under section 234B if –
- If the taxpayer is required to deposit advance tax but has not been able to pay it on time or
The amount paid as advance tax is less than 90 per cent of the ‘assessed tax’ - Assessed tax means tax on total income determined in summary assessment or regular assessment, including TDS or TCS, MAT credit or AMT credit, relief under section 89 and foreign tax credit under section 90, 90A or 91. Under this section, simple interest will be charged at the rate of 1 percent per month or part thereof.
Section 234C
If the payment of advance tax in any installment is less than the prescribed percentage, then interest will be charged under 234C. However, interest will be charged if –
- Advance tax paid on or before June 15 is less than 12 percent of the assessed tax.
- Advance tax paid on or before September 15 is less than 36 percent of the prescribed tax.
- Advance tax paid on or before December 15 is less than 75 percent of the prescribed tax.
- Advance tax paid on or before March 15 is less than 100 percent of the prescribed tax.
Section 234D
Interest under this section will be levied – if any refund is given to an assessee on the basis of summary assessment. But on completion of regular assessment it is found that no refund is payable to the assessee or the amount refunded is more than the refundable amount on regular assessment. During this period, simple interest will be charged at the rate of 0.5 percent per month or part thereof.
