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When tax payable is small and prosecution does not apply

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For a non-company taxpayer, the law protects you from prosecution for a Sec 139(1) default if the tax payable on regular assessment, after advance tax and TDS, does not exceed ₹10,000. Many salaried people with full TDS fall within this. You should still file the pending return.

Provisions

Sec 276CC (now Sec 479); Sec 199, Income-tax Act 1961

Analysis

The proviso to Sec 276CC (now Sec 479) looks at tax payable minus advance tax and TDS. If your salary tax was ₹1,80,000 and TDS was ₹1,75,000, the net of ₹5,000 is under ₹10,000, so prosecution for the Sec 139(1) default should not lie. Show this with Form 26AS and a computation in your reply. This protection does not cover failure to file in response to a notice, so treat those cases more carefully.

Close

  1. Compute tax for each year and subtract TDS and advance tax.
  2. Attach Form 26AS showing the credits.
  3. File the pending return.
  4. Reply showing net tax payable is ₹10,000 or less.

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Connect nowPay and start: Prosecution for non-filing, Sec 276CC (now 479), ₹9,999

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