Relief for late I-T return filing - Per day Penalty clause relaxed

Late filing of I-T returns will no longer attract the stringent penalties as it currently does under the law. In a big relief to people who file their returns late, Finance Minister Arun Jaitley effected an amendment to the income tax law which imposes exorbitant per day penalties on late filers.

Moving the said amendment during his response to the Finance Bill 2014 discussions in the Lok Sabha today, Jaitley said, “For late filing of returns a provision has become onerous. It pertains to the per day penalty. The Central Board of Direct Taxes (CBDT) earlier had no discretion to deal with these cases. The amendment will allow the CBDT some discretion in these cases,” Jaitley said.

Experts said the move was “wise” as it would save a lot of late filers of IT returns from the draconian provisions of the per day penalty clause. The amendment was passed by the Lok Sabha today along with the Finance Bill 2014 which will give effect to the Budget proposals of the Government.