Penalty for non-filing income tax returns, wealth statement, foreign assets/income statement & active status.

Section 182(1) Offences and penalties – Non-filing of Income Tax returns

Offence: Where any person fails to furnish a return of income as required under section 114 within the due date.

Penalties: Such person shall pay a penalty equal to 0.1% of the tax payable in respect of that tax year for each day of default subject to a maximum penalty of 50% of the tax payable provided that if the penalty worked out as aforesaid is less than [forty] thousand rupees or no tax is payable for that tax year such person shall pay a penalty of [forty] thousand rupees.

Minimum penalty – Salaried case

If seventy-five percent of the income is from salary and the amount of income under salary is less than five million Rupees the minimum amount of penalty shall be five thousand Rupees.

Explanation.— For the purposes of this entry, it is declared that the expression “tax payable” means tax chargeable on the taxable income on the basis of assessment made or treated to have been made under section 120, 121, 122 or 122C.

Section 182(1AA) – Failure to furnish wealth statement

Offence 114 & 116: Where any person fails to furnish wealth statement or wealth reconciliation statement.

Penalty: Such person shall pay a penalty of “0.1% of the taxable income per week or Rs.[100,000] whichever is higher.”

Section 182(IAAA) – fails to furnish a foreign assets and income statement

Offence (116A): Where any person fails to furnish a foreign assets and income statement within the due date.

Penalty: Such persons shall pay a penalty of 2 percent of the foreign income or value of the foreign assets for each year of default.

Section 182(A) – Return not filed within due date & penalty for active taxpayer status

Offence: If a person fails to file a return of income under section 114 by the due date as specified in section 118. He may not be included in the active taxpayers’ list for the year for which return was not filed within the due date.

Penalty: However, a person shall be included in the active taxpayer list on filing return after the due date, if the person pays surcharge:
(i) twenty thousand in case of a company;
(ii) ten thousand in case of an association of persons;
(iii) one thousand in case of an individual.