The vice-chancellor of Calcutta University, Santa Datta, revealed on Wednesday that the income tax department has imposed a fine of ₹73 crore on the university for failing to file returns for the financial years 2020-21 and 2021-22. Datta, who took on the role of interim VC in June 2023, stated that the university plans to contest the hefty fine. A committee has been established to investigate the reasons behind the failure to file the tax returns.
Educational institutions are mandated to submit income tax returns annually, as per a provision implemented in 2015. Following a notice from the income tax department, the university intends to seek a stay on the order and is consulting with tax experts. Calcutta University has already filed its tax return for the 2022-23 financial year and is in the process of filing the return for 2023-24.
Furthermore, the finance officer of a state-aided university highlighted that in the returns, educational institutions are required to disclose details of grants received and their allocated expenditures. Failure to furnish the return by the due date may result in penalties as stipulated under different sections of the Income Tax Act, including a monthly interest on the outstanding tax amount and a fixed penalty. Additionally, if there is underreporting or misreporting of income, penalties may be imposed as determined by a specified formula under the act.