The income tax department has slapped a fine of ₹73 crore on Calcutta University for not filing returns for two financial years, vice-chancellor Santa Datta said on Wednesday.

The VC said the tax returns were not filed in the 2020-21 and 2021-22 financial years.

Datta was appointed interim VC in June 2023.

The VC said the university will appeal against the steep fine and a committee has been constituted to find out why the tax returns had not been filed.

Educational institutions are required to file income tax returns every year in accordance with a provision introduced in 2015, said the finance officer of a state-aided university.

"Our accounts officer got a letter from the IT department on Monday, alerting the university about the steep fine that has been imposed on us. The two financial years during which the university did not submit the tax returns precede the start of my tenure as VC. We are in touch with tax experts. The university will soon move a proper forum seeking a stay on the order," Datta said.

"A committee has been formed to find out why the returns had not been filed."

Datta said CU had filed the tax return for the 2022-23 financial year and is in the process of filing the return for 2023-24.

The finance officer of a state-aided university said the Narendra Modi government had introduced a provision in 2015 requiring all educational institutions to file IT returns annually.

In the returns, the institutions must submit the details of the various grants they have received and the purpose for which the money has been spent.

Under Section 139(4C) of the Income Tax Act, any educational institution is required to file a tax return every year if its income exceeds the maximum amount that is not taxable.

Under Section 234A of the act, if the return is not furnished by the due date, the assessee shall be liable to pay income tax at the rate of 1 per cent every month (12 per cent annually) from the due date.

Under section 234F, a sum of ₹5,000 is payable if the return is not furnished by the due date.

If there is underreporting and misreporting of income, the penalty is determined according to a formula under Section 270A of the act. The assessing officer or commissioner (appeals) or principal commissioner may direct the assessee who has under-reported income to pay the penalty.