Are you aware of the circumstances that you might have to go through with if you haven’t filed for an income tax return?
The income tax department will take their legal actions if you haven’t filed for ITR they can launch prosecution against you. According to the income tax law, the income tax department might impose three years of imprisonment that can extend up to the seven years for non-filing of ITR. Due to the pandemic, the government had provided various time-bound compliances. In case of filing your ITR, government had extended the deadline. Some of you may have difficulty in filling it as you might be unaware of the procedure and its legal provisions. Have a look in this blog for knowing more about it.
Law of filing ITR: According to the existing law, a person can’t file the ITR for more than one year at a time. The filing dates are available in the portals and the deadline is extended during this rough time due to CoVid-19. As the unlock is proceeding the government will might not give any further extensions in filing dates, so in case you haven’t fill your old ITR filled it right now otherwise you will not be able to file this old ITR. If you have already missed the deadline you have to penalty and have to pay a late fee of Rs. 10,000 while filing your old ITR unless your total income is below 5 lakhs, in that situation you have to pay a fine of Rs 1,000. Apart from paying the late fee, you will be charged with interest for delay in payment of unpaid taxes.
What will happen if you missed the deadline of filing your ITR?
Always pay attention to the extended dates and deadline provided by the government for filing of your ITR. In case you are liable and fail to meet the last deadline, the income tax department will follow very serious consequences. For non-filing it you have to a penalty equal to 50% of the tax which has been avoided by you. In addition to this, the interest will be charged till the date you ultimately file your ITR. Apart from this income tax department can launch a prosecution against you. The income tax laws prescribe a minimum 3 years of imprisonment which might extend to 7 years in case if the amount of tax is not exceeded to 10,000.
CONCLUSION- By knowing the consequences of not filing of ITR you can conclude to remain cautious with its deadlines so that you don’t have to pay high penalties. It is always good to be updated with the last date of filing ITR otherwise be ready for the legal actions taken up by the income tax department.