From 01.07.2012 new provisions on penalty are applicable for belated filing of income tax return. From july 2012 onwards one has to pay belated fiiling fee under section 234 E and Penalty under section 271 H of the income tax Act. New provisions regarding this has been ammended to the Act.
I. LATE FILING FEE UNDER SECTION 234E
As per section 234 E of the Income Tax act 1962, if a person has defaulted in filing the TDS return within the due date , he has to pay the late filing fee of Rs.200 per day for each day of delay. The maximum amount payable for the delay is limited to the amount of tax deducted or collected as the case may be .
For example . Mr.X has deducted Rs.1000/- as TDS from Mr.Y and remitted to the govt for the 1st quarter of 2012. The due date for filing TDS return is 15th July 2012 . If Mr.X failed to file the return in due date and files the same only in 19th July 2012. Then he has to pay Rs. 600 as late filing fee of TDS return for 3 days( ie for 16th 17th and 18th).
Suppose in the above case Mr.X files the return only on 31st July. Then there is a delay of 15 days. In this case the late filing fee is limited to Rs.1000/- (lower of 3000(200*15) and 1000(Tds amount collected).
II. PENALTY UNDER SECTION 271H
In addition to the above mentioned fee which is payable for uploading return belatedly , additional penalty under section 271 H of the Act may also be invoked if the default for filing the return continues for more than 1year from the original date for filing the return. The penalty under 271 H is minimum Rs.10000/- and maximum of Rs.100000/- .