PERSONAL TAX: Late fee for delay in filing I-T should be paid self-assessment tax

Q. I have filed an income tax return for last year. Can I do it now? Since I have no tax to pay will I have to pay penalty? How will I pay penalty?
—Ashutosh Rane

If an Income Tax Return for a financial year has not been filed up to the due date prescribed, it can still be filed at any time before the end of the relevant assessment year. Thus, the Income Tax Return for the financial year 2017-18 can be filed till March 31, 2019. However, you shall be liable to pay a late filing fee under section 234F of the Income Tax Act, 1961 (the Act). For individuals having income above Rs 5 lakh and filing the income tax return after December 31, 2018, but before March 31, 2019, the amount of fee shall be Rs 10,000. But, this late fee shall be limited to Rs 1,000 in case the total income is less than Rs 5 lakh. Further, the late fee shall have to be paid even if there is no tax liability. It can be paid online/offline, by way of self-assessment tax under section 140A of the Act.

Late filing of income tax return also entails interest under section 234A of the Act, which is computed on the tax liability, at the rate of 1% per month for the period commencing from the date immediately following the due date of furnishing of return till the date on which it is actually filed. However, since you are not liable to pay any taxes, this interest liability shall be nil.

Q. I got a notice for my returns for the year 2009. I am being asked to pay a huge amount. The letter says that I changed my address and did not inform the Income-tax department. So the earlier notice did not reach me on time and hence they are charging me interest. What should I do?
—Harish Kapor

It is advised that you visit the Income Tax Officer and present your case. In case there is a genuine reason why you were unable to inform the incidence of change of your address, the tax officer may condone the delay. You shall, however, have to pay taxes due and interest applicable thereon, as may be determined the tax officer upon conclusion of the assessment proceedings.

Chirag Nangia, Director, Nangia Advisors LLP.