The Revenue Department with an aim to expedite tax compliance, proposes to make it mandatory for tax payers to file I-T returns as well as revised returns by March end of the assessment year (AY).
The memorandum to the Finance Bill, 2017 issued by the Department proposes a fee for delayed filing of Income tax returns. The fee for people whose total income does not exceed Rs. 5 Lakh, the fee would be Rs. 1,000/=. In other cases, the fee should be Rs. 5,000/= payable if the return is filed after July but on or before December 31 of the Assessment Year (AY). The fee would be Rs. 10,000/= if the return is filed after December.
“In order to expedite assessments of the Department, it is critical that the returns for an assessment year also freeze by the end of the assessment year. It is hence proposed to amend the provisions of sub-section (5) of section 139 to provide that the time for furnishing of revised return shall be available up to the end of the relevant assessment year or before the completion of assessment, whichever is earlier,” said the memorandum to the Finance Bill 2017.
CBDT Chairperson Sushil Chandra said: “Today we have 1 crore people below Rs 2.5 lakh income filing tax returns. So if they are filing ITR, we want them to file returns on time. So now timely filing of ITR is mandatory.”
So far assesses were permitted to file delayed income tax returns one year after the completion of the assessment year.
