Jumbangla Desk: Many people cannot submit their returns on time due to various reasons. Therefore, as per the budget for the current financial year 2024-25, the National Board of Revenue (NBR) has been granted an extension of one month.
Income Tax
The last Income Tax Fair was held in November 2020. After that, income tax service has been done on a short scale. According to the law, the filing period for individual taxpayers is from July 1 to November 30. The deadline for filing company income returns is January 15. The time for submission of income tax return is fixed within this period.
What to do if the tax payer fails to pay the tax on time? Here are some suggestions for the convenience of Jumbangla News readers.
Application for extension of time: Taxpayer can extend the time for a total of four months beyond the specified period. The Deputy Tax Commissioner of the concerned circle of the taxpayer may extend the time by two months on his own authority. If more time is required, he can extend the time by another two months, i.e. four months in total, with the approval of the Joint Commissioner of Taxes.
Penalty for failure: If the taxpayer fails to file the return without reasonable cause, the Deputy Commissioner of Taxes concerned may impose a penalty at the rate of 10 percent of the tax levied on the last assessed income of the person. The minimum amount of fine will be one thousand rupees. An additional penalty of Rs 50 per day will be imposed if the tax is not paid with penalty within the stipulated time.
Penalty for Irregularity after Filing of Return: Penalty is provided in various cases for any illegal act despite filing of return. For example, if a person uses someone else's or fake Taxpayer Identification Number (TIN) in his income tax return, then the Excise Commissioner can impose a penalty of up to 20,000 rupees. Penalties at various rates are provided for tax evasion by a person by concealing his income, assets, liabilities, expenses or any other important information.
Taxpayer can appeal: A taxpayer can appeal if he is aggrieved by the order of the Income Tax Authority. There is an appeal to the Income Tax Authority. There are prescribed forms and procedures for appeals. The Appellate Authority shall fix the date and place for the hearing and send notice to the appellant and the Commissioner of Excise. After disposal of the case, the appellate authority shall pass the order and communicate the matter within 30 days to the appellant and the Commissioner of Excise concerned.
However, if a taxpayer fails to file the return by 30 November or after Tax Day, at least 6 types of benefits will not be available. which includes—
* Will not get tax exemption benefits i.e. any kind of tax exempted income will be treated as taxable income.
* Do not get the benefit of paying tax at a reduced rate.
* No investment tax concession will be availed.
* As per section 174 of the Income Tax Act, 2023 he has to pay additional tax.
* As per section 266 of the Income Tax Act, 2023 he has to pay penalty at the prescribed rate
Other problems you may face if your income tax return is not filed-
* Those who do not submit income tax return on time will not be able to get any trade license later. Suppose you have been evading income tax for a long time. Suddenly needed to go abroad. You will not get a visa easily. Because you have to submit all the income tax filing information there.
* According to the law, if a person fails to file income tax return on time, in such case a fine of 1000 rupees or 10% of the previous year's tax can be imposed as per the ordinance. The amount which is higher between these two can be penalty.
* If one does not file return for several years, then in addition to that penalty, a fine of 50 rupees per day for the entire period of time for which he did not file return can be imposed.
advertisement
* If you are an old taxpayer, you may have to pay up to 50% of the income tax paid in the previous year.
* For those who do not pay tax at all despite being taxable, there are three types of penalties. One is that there is a provision to levy an additional penalty of 25% over and above the amount of tax due.
There was some discomfort with India: Foreign Adviser
* Monthly simple interest at the rate of 2% on the amount of tax due. Penalty equal to the amount of tax due.
