Budget 2024-25: FM Proposes to Amend S.271H of Income Tax Act w.r.t Penalty on Late Returns Filing

The Finance Minister’s Budget 2024-25 proposal includes amending Section 271H of the Income Tax Act concerning penalties for late tax return filings. The amendment aims to reduce the penalty burden on taxpayers by introducing a more lenient approach for those who file returns after the deadline but before receiving a penalty notice. Specifically, the new provisions will allow for a lower penalty amount if the return is filed after the due date but within a specified period. This is intended to provide relief to taxpayers and simplify compliance.