Penalties under Income Tax

Penalty for Late Filing of Income Tax Return  

If any taxpayer fails to furnish his/her Income Tax return before the end of relevant assessment year the assessing officer may levy the penalty 5000 if return furnishes after the due date but before 31st December of the relevant assessment year and 10000 if return furnishes after 31st December the relevant assessment year but before 31st march of the relevant assessment year.

Interest on Unpaid Tax

Income Tax Return may attract Interest u/s 234A. If there are any taxes that are unpaid, penal @1% per month or part thereof will be charged until the date of payment of taxes.

Penalty for Concealment of Income Under

If any taxpayer under-reporting or Misreporting of Income as per section 270A (1) the assessing officer may impose penalty the of a sum equal to 50% of the amount of tax payable on under-reported income.

However, if under-reported income is in consequence of any misreporting thereof by any person, the penalty shall be equal to 200% of the amount of tax payable on under-reported income 

Prosecution for Failure return of Income

In case you fail to furnish the return of Income the department can issue a prosecution notice under 276CC

In this case, 276CC provides for rigorous imprisonment for a term up to 7 years and fine.

Failure of complying of Notice of Income Tax

If income tax officer issues a notice under section 115WD(2)/115WE(2) / 142(1) or section 143(2) and you fail to reply the notice the Income-tax officer can impose a penalty of 10000 for each failure under section 271(1)(b)