This Articles briefly covers about consequences of delay in filing ITR, Non-payment of tax, and Not filing income tax return at all.
Following are the consequences of delay in filing the Income Tax Return:
- Losses (other than house property loss) cannot be carried forward.
- Levy of interest on tax due under section 234A @ 1% per month(from the due date applicable to you for filing of return till the date that you actually file your return.)
- Late filing fees under section 234F is levied.
✔ If return is filed on or before the due date(subject to extensions if any) - No Fees
✔ Late filing fee of Rs. 5,000 shall be payable if return furnished after due date but before 31st December(subject to extensions if any) of the assessment year.
✔ In other cases, late filing fees of Rs. 10,000 is payable. ✅👉 However if total income does not exceed Rs. 5 Lakh then late filing fees to be paid cannot exceed Rs. 1,000, in all cases irrespective of timing of filing of your return . - Lose Interest on refunds.
- Exemptions under section 10A, section 10B, are not available.
- Deduction under 80-IA, 80-IAB, 80-IB, 80-IC , 80-ID and 80-IE, are not available.
- Deduction under 80IAC, 80IBA, 80JJA, 80JJAA, 80LA, 80P, 80PA, 80QQB and 80RRB are not available. (From A.Y 2018-19).
Consequences of Non-payment of tax:
Non-payment of tax attracts interests, penalty and prosecution. The prosecution can lead to rigorous imprisonment from 3 months to 2 years (when the tax sought to be evaded exceeds Rs. 25,00,000 the punishment could be 6 months to 7 years).The consequences of Non-filing of Income tax return when Having taxable income are:
😓Be prepared to welcome notices from Income Tax Department along with fines and penalties.❕ Late filing Fee u/s 234F shall be levied if return is not filed on or before the due date. The quantum of fees shall vary according to the amount of your income and return filing date. Maximum fees levied is Rs. 10,000/-.
❕ You can not carry forward your losses (Business) if you do not file an Income Tax Return or file after the due date.
❕ Interest u/s 234A @ 1% per month/ part of the month till the time you file your return. If you've not complied with the advance tax provisions at the time of late filing of return interest u/s 234B and 234C also applicable.
❕ Notice u/s 142(1) which requires you to file your return if you have not filed it before the due date. if you fail to comply with this notice then it may result in:
(a) Best Judgement Assessment u/s 144 and/or
(b) Penalty of Rs. 10,000 u/s 271(1)(b) and/or
(c) Imprisonment with or without fine u/s 276D.
❕ Notice u/s 148 for furnishing return within the period as mentioned in the notice itself.
As per Section 270A, if income is under-reported due to
- Wrong disclosure / misreporting then penalty shall be leviable @200% of tax payable on such income and
- In any other case, the penalty shall be 50% of tax payable on such income
❕ A penalty of minimum 100% to a maximum of 300% of the amount of tax for concealment of income u/s 271(1)(c).
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