The finance ministry should increase rate of interest on the late submission of income tax returns so that people are forced to pay tax in time. This would also make the ministry richer.
AS PER a long practice, Indian Rail Budget is announced every year on February 26 while the General Budget is announced few days later on February 28/29. But the dates of submission of income tax return (ITR) for individuals and corporates is never strictly followed.
For example, ITR of an individual to be submitted by 30th June every year subsequently changed to 31st July while the latest date fixed is 31st August for individuals who don't require auditing. While it is 30th September for corporates since they have to undergo an auditing exercise.
Though for individuals, rate of inertest @ 12 % per annum is charged if ITRs are submitted by 31st August and interest is being levied on corporates too if they fail to file returns by due date.
It is suggested that our finance ministry should charge 18% per annum between July 1- 31 and 24% between August 1- 31 so that the taxpayers become more cautious while filing their returns by due date.
This should be applied to corporates as well. Certainly the ministry will only gain out of the process, if it applies these suggestions.
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