WHAT WILL HAPPEN IF I DO NOT FILE MY INCOME TAX RETURN?

 INCOME TAX RETURN


As per law, every person who has taxable income more than the prescribed exemption limit of Rs.2.5 lac has to mandatorily file their Income Tax Return on or before the due date prescribed under the Income Tax Act.

 

Thus, income tax return filing in India is compulsory in case the income of the person is taxable.

Now, a question arises as to what will happen if a taxable person does not file His/Her Income tax return within time?

 


Following are the consequences of non filing of Income Tax Return within time in India:

 

1)      In case of Income tax return filing after the due date-


Penalty of Rs.5000 u/s 234F will be levied in case ITR is filed on or before  31st December of the Assessment Year. However, penalty of Rs.10,000 would be levied in case ITR is filed after 31st December but before 31st March of the assessment Year.

 

2)      In case of late filing of Income Tax and has tax payable

 

Interest u/s 234A would be levied @1% from the due date till the date of filing of Income Tax Return on the outstanding portion of tax liability.

 

3)      In case of failure to file TDS or TCS return within time prescribed

 

Penalty u/s 271H would be levied between Rs.10,000-Rs.1,00,000. Further, penalty u/s 234E would be levied for late filing which is Rs.200/day till the TDS/TCS is paid.

 

4)      In case of non filing of ITR by person who has taxable income or who is found to under-report his income in the returns


Penalty u/s 270A would be levied for an amount of 50% of the total tax payable on the income for which no return was furnished.

 

OTHER IMPORTANT POINTS RELATING TO LEVY OF PENALTY FOR NON FILING  OR LATE FILING OF  INCOME TAX RETURN


a)      In case of Salaried individuals having total income below Rs.2.5 lac- There is no penalty for non filing of Income Tax Return within due dates.

 

b)      In case of Salaried individuals having total income below Rs.5 lac- There is maximum penalty of Rs.1000 for non filing of Income Tax Return within due dates.

 

c)      In case of Salaried individuals having total income above Rs.5 lac- There is maximum penalty of upto Rs.10,000 for non filing of Income Tax Return within due dates.

 

d)      In case of Companies- There is maximum penalty of upto Rs.10,000 for non-filing of Income Tax Return within due dates.

 

e)      In case of Self-employed individuals- There is maximum penalty of upto Rs.10,000 for non filing of Income Tax Return within due dates.

f)       Penalty is also levied in case a person is liable to file His or Her Income Tax Return due to other conditions prescribed under the Act, even when they do not have total income in excess of Rs.2.5 lac during a financial year.

 

Thus, strict rules are prescribed in the Act relating to Income Tax Return Filing in India and it is very important to keep in mind aforesaid penalties relating to non compliance.

 

In case you require any information or clarification, you may contact EzyBiz India at www.ezybizindia.in or call at +919899217778

 

Location: India

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