More severe action on income tax returns non-filers in FY 2017

According to the tax experts, taxpayers failing to file tax returns on time, will be liable to pay mandatory penalties, along with having to answer notices from the Income Tax Department, and will even have their tax records scrutinised. The system generated notices are expected to come more severely on the non-filers and casual defaulters. While, the compliance of notices will be updated online to put a cap on corruption.

According to the tax experts, taxpayers failing to file tax returns on time, will be liable to pay mandatory penalties, along with having to answer notices from the Income Tax Department, and will even have their tax records scrutinised. The system generated notices are expected to come more severely on the non-filers and casual defaulters. While, the compliance of notices will be updated online to put a cap on corruption.

According to the Budget 2017, non-filers beyond July 31, 2017’s due date, will be liable to pay a penalty of Rs 5000, in the case of filing of I-T returns before December; and Rs 10,000 if the returns are filed after December and before March in FY17. Whereas, in the case of delay in filing I-T returns for more than a year, the filer will have to encounter a more tedious I-T returns filing process, along with the mandatory penalty.

While, as a consequence of demonetisation, the tax authorities have additional access to humongous data required to pin down defaulters. However, the I-T department will not be scrutinising first-time return filers with income less than Rs 5 lakh.

Source : India Infoline News Service 3/4/2017

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