The Hindu Business Line : Penalty for non-filing of returns

A penalty of Rs 5,000 may be imposable under Section 271F if a person required to file a return under Section 139(1) does not file the same before the end of the relevant assessment year (AY).

For example, for the AY 2003-04, this penalty may be imposed only if the return is not filed before March 31, 2004.

If there is a reasonable cause for the failure to furnish the return before the end of the assessment year, such penalty shall not be imposed. However, if the return is not filed within the due date, interest will be charged under Section 234A starting from the day immediately following the due date.

Every company and every other person whose income exceeds the maximum amount not chargeable to tax is required to file a return within the due dates stipulated under Section 139(1).

This apart, the proviso to Section 139(1) requires that a person not furnishing a return under the Section and residing in the specified area is required to furnish the return if he satisfies any one of the following six economic criteria:

is in occupation of an immovable property exceeding a specified floor area, whether by way of ownership, tenancy or otherwise, as may be specified by the Board in this behalf;

is the owner or the lessee of a motor vehicle (other than a two-wheeled motor vehicle, whether having any detachable sidecar having extra wheel attached to such two-wheeled motor vehicle or not);

is a subscriber to a cellular telephone not being a wireless in local loop;

has incurred expenditure for himself or any other person on travel to any foreign country;

is the holder of the credit card, not being an "add-on" card, issued by any bank or institution; or

is a member of a club where entrance fee charged is Rs 25,000 or more.

The term due date is explained in the accompanying table.

It may be mentioned that the Central Government has specified that in respect of the following class of persons the proviso to Section 139(1) shall not apply:

any person being a non-resident in regard to conditions specified in clause (i) to clause (vi) of the first proviso;

any person being an individual who has attained 65 years of age but is not engaged in any business or profession during the previous year in regard to conditions specified in clause (i) or (iii) of the first proviso — Notification No. SO 507(E) of June 11, 2001.

In exercise of the powers conferred under Explanation 4 to sub-section (1) of Section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes (CBDT) has specified the following as the places of pilgrimage for the purpose of the aforesaid sub-section and travel to such places shall not be regarded as travel to any foreign country for the purposes of sub-section (1) of Section 139, namely:

to Saudi Arabia on Haj pilgrimage organised by Central Haj Committee, Mumbai constituted and under Haj Committee Act, 1989; and

to China on pilgrimage to Kailash Manasarovar organised by the Ministry of External Affairs, Government of India — Notification No. SO 508(E) of June 11, 2001.

Notified neighbouring countries for purposes of Explanation 4 to Section 139(1): In exercise of the powers conferred under Explanation 4 to sub-section (1) of Section 139 of the Income-tax Act, 1961 (43 of 1961), the CBDT has specified that the expression "travel to any foreign country" used in this sub-section shall not include travel to the following neighbouring countries: Bangladesh; Bhutan; Maldives; Nepal; Pakistan; and Sri Lanka.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Karnataka Bank's `Swarna Nidhi'

Touchtel cuts ILD rates

Big investments in mutual funds — Loaded against the retail customer

Why big investors bring in big risks

Will the November effect last?

Overseas acquisitions — Needed, information better and faster

Outsourcing backlash in the US — Time for a strategic rethink

Alliance Buy India: Sell

Prudential ICICI Flexible Income Plan: Avoid

HDFC Mutual Fund launches MIP

Canexpo: Pare exposures