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Most of us who are required to file Income tax returns for the year 2010-11 (Assessment Year 2011-12), would have met out the obligation. Unfortunately, there may be few who would not have filed their tax return in time.
Tax experts says levy of penalty in such cases question of payment of fine will arise depending on whether or not income tax for the relevant year is paid
In such a case, the penalty to be levied would depend on the status of the tax to be paid.
If tax has been paid:
If you have paid your taxes, there's little to worry because you can file the returns before 31st March 2012 without paying a penalty. But if new deadline is still pushed and return is filed after 31st March 2012, the assessing officer may impose a penalty of 5,000. This amount may depend on the discretion of the assessing officer.
If tax has not been paid:
If income tax was not paid then penalty has to be paid at the rate of 1% per month for the period after 31st July. If the tax due is more than Rs. 10,000, you are supposed to pay an advance tax on your income. In such a case, the 1% penalty per month will be applicable from the period you have not paid the advance tax.
If Form 16 has an error:
If your employer has made an error in Form 16 and this has crept into your returns, it will have to be corrected. In such cases we should go ahead and file the return anyway. Subsequently, revised return can be filed based on rectified Form 16 produced by the employer.
Source : Times of India