Penalties and Interest Related to Income Tax

If the Estimated Income Statement is not submitted:

Penalty: Rs. 5,000 or 0.01% of taxable income (whichever is higher)

If the Annual Tax Return is filed late:

Small taxpayers → Rs. 100 per month (up to 12 months) or Rs. 1,200 per return
Other taxpayers → 0.1% of taxable income or Rs. 1,100 (whichever is higher)

If required documents are not submitted:

Penalty: 0.1% of taxable income or Rs. 1,000 (whichever is higher)

If TDS (Tax Deducted at Source) details are not submitted (as per Section 10):

Penalty: 2.5% per year of the TDS amount that should have been deposited

If the Advance Tax Collection Statement is not submitted (as per Section 15 (A)):

Penalty: 2.5% per year of the advance tax amount to be collected

If the estimated installment of advance tax is incorrect:

If the deposited amount is less than 90% of the actual tax liability → 15% annual interest

If tax is not paid on time:

15% annual interest will be charged (any fraction of a month will be considered a full month).