Yes, there can be penalties for Motor & Truck Rental Services if they fail to file their Income Tax Return (ITR) on time in India.
1. Late Filing Penalty:
If Motor & Truck Rental Services fail to file their ITR by the due date, they may incur a late filing penalty. The penalty amount varies based on the taxpayer’s total income and the delay in filing.
If the taxpayer files the return after the due date but before December 31 of the assessment year, the authorities might levy a penalty of up to ₹5,000.
If the taxpayer files the return after December 31, the authorities could impose a higher penalty. The penalty is lower for taxpayers with lower income.
2. Interest on Tax Due:
Apart from the late filing penalty, if there’s any tax payable by the Motor & Truck Rental Services and it remains unpaid after the due date, they might be liable to pay interest on the unpaid tax amount. The interest is usually calculated from the due date until the actual payment date.
3. Loss of Deductions:
Filing ITR late can also lead to a loss of certain deductions and benefits. For instance, if the return is not filed on time, taxpayers might lose the ability to carry forward losses to future years. This could impact their tax planning and future tax liability.
It’s important to note that the Motor & Truck Rental Services should consult with a qualified tax professional or refer to the latest official guidelines to ensure accurate and up-to-date information regarding penalties for late ITR filing.
To visit: https://www.mca.gov.in/
For further details access our website: https://vibrantfinserv.com