Delay in filing Income Tax Returns to attract late filing fees

NIMESH K. CHOTHANI
B.Com., LL.B., F.C.A., C.S., D.I.S.A.

MANSI PAREKH
B.Com.,A.C.A

Delay in filing Income Tax Returns to attract late filing fees

A new section, Sec 234F has been inserted to impose fees for late filing of Income Tax Return (ITR). Sec 234F is effective from Assessment Year 2018-19 (Financial Year 2017-18).

If ITR for AY 2018-19 is filed after due the date (31st July for individuals without audit, 30th Sept for other persons requiring audit), but before 31st December of the Assessment Year (31-12-2018 in case of Assessment year 2018-19) then late filing fees of Rs. 5,000/- will be required to be paid and if ITR is filed after 31st December then Rs. 10,000 will be required to be paid.

Exception: If the total income of a person is below or equal to Rs. 5 lakhs, then late filing fees will be restricted to Rs.1000 only.
Furthermore, Government has introduced new ITR forms for AY 2018-19. The key changes in new ITR forms in comparison to last year are mentioned below:
Unlike last year, the new ITR-1 requires detailed calculation of income from salary and from house property, which was restricted to a single figure till last year.
In case a taxpayer opts for Presumptive Taxation Scheme under section 44AD, 44ADA or 44AE, he will have to file the Return of Income in Form ITR 4. The old ITR 4 sought only 4 financial particulars of the business, viz., (a) total creditors, (b) total debtors, (c) total stock-in-trade and (d) cash balance. The new ITR 4 form seeks details of 14 financial particulars of business such as amount of secured/unsecured loans, advances, fixed assets, capital account, etc.
The new ITR 4 requires a taxpayer to provide the aggregate turnover reported by him in GST Returns.
The new ITR forms have introduced new columns to report CGST, SGST and IGST paid by, or refunded to, an assessee during the Financial Year.
The assessee shall now be required to pay the late filing fees along with interest u/s 234A, 234B and 234C. The Income-tax Dept. shall not be required to initiate the penalty proceedings separately for late fees.
In the case of Capital Gains arising on transfer of unquoted shares, it would now be mandatory for the investors to obtain the valuation report. To ensure that investors correctly report the capital gains from unlisted shares, the new ITR Forms require the taxpayer to provide figures of actual sales consideration and Fair Market Value (FMA) as determined by a Merchant Banker or CA.