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MCQ Self Challenge # 0064 on Late fees on Late Filing of Tax Return

Late Fees on Late Filing of Tax Return

 

Dear Professional Seniors & Friends,
Warm Greeting!

Here is the Next post of #MCQ on concept based practical professional knowledge on late fees on late filing of tax return in a unique manner to be self answered by participants. The detailed answer of these MCQs shall be posted next day for the self assessment of the participants.

MCQ 64.1: An individual (age below 60 years) having Gross total income Rs. 2,48,000 and no deductions under chapter VI-A filed income tax return on 5th of Oct, 2017. Which among the following is correct in relation to late fees assuming due date to file return is 31st July, 2017?
A) Late Fees of Rs 1,000 shall be levied.
B) Late Fees of Rs 10,000 shall be levied.
C) Late Fees of Rs 5,000 shall be levied.
D) No Late Fees shall be levied.

MCQ 64.2: What if in the above question, assessee filed the return on 5th of Jan,2018?

A) Late Fees of Rs 1,000 shall be levied.
B) Late Fees of Rs 10,000 shall be levied.
C) Late Fees of Rs 5,000 shall be levied.
D) No Late Fees shall be levied.

Sincere Regards

CA Sanjay Kumar Agrawal
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——Answer MCQ Self Challenge # 0064——-

 

Dear Professional Seniors & Friends,

 

Warm Greetings!

 

This post of MCQ is on concept relating to no late fees applicable under Section 234F despite late filing of income tax return.

 

Answer to MCQ 64.1: D) No Late Fees shall be levied.

 

Answer to MCQ 64.2: D) No Late Fees shall be levied.

 

Practical Analysis for MCQ 64.1& 64.2:-

  1. Section 271F provides for late fees in case person required to file return under Sec 139 files after due date from AY 2018-19 which is as follows –
CaseLate Fees if total Income of person exceeds Rs 5 LakhsLate Fees if total Income of person does not exceed Rs 5 Lakhs
Return is filed on or before 31st December 2018 but after due date i.e. 31st July 2018Rs 5,000Rs 1,000
Return is filed after 31st Dec 2018Rs 10,000Rs 1,000

 

  1. Point here to note is that late fees will be applicable only when a person is mandatorily required to file return as per Section 139 and filed the return after due date. (Applicable from AY 2018-19)

 

  1. So who so ever is not required to file return mandatorily as per Section 139 can file their return even after due date with no late fees.

 

  1. As per Section 139, every person(individual) whose total income exceed the maximum amount not chargeable to tax shall be required to file income tax return.

 

  1. Based on the above analysis, correct answer MCQ 1 & 64.2 : D) No Late Fees shall be levied since in our question person total income is Rs 2,48,000 which is less than maximum amount not chargeable to tax hence not required to file return under Section 139 and the tax return in our MCQ relates to AY 2017-18 while amendments in Section-271F is applicable from AY 2018-19, so not liable to late fees under Section 271F.

 

(Disclaimer: The objective of the MCQ post is just to discuss the concept, it may happen, by change of facts, the answer may be different. Please do not treat this as professional opinion; you can definitely have your own opinion.)

 

Sincere Regards!

CA Sanjay Kumar Agrawal

Mobile: 9810116321

To access MCQ posts regularly, please Join Telegram Channel:
https://t.me/caSanjayKumarAgrawal

 

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