Income Tax News, Judgments, Act, Analysis, Tax Planning, Advisory, E filing of returns, CA Students

ITRToday helps you stay updated with latest Direct income tax consultants, tax refund & provides guidance to Students of CA, CS, CMA, Advocate, MBA etc.

Income Tax

Have You Filed IT Returns This Year? If Not, Here’s Why You Must Do It Immediately

Sangati 4 years ago 2 min read

Have You Filed IT Returns This Year? If Not, Here's Why You Must Do It Immediately

The Indian government is trying its best to make the process of filing IT returns seamless and easier. Taking into consideration the COVID-19 threat the government already extended the deadline for filing the returns. According to reports, you can now file ITR for the year 2018-2019 up to September 30, 2020. In case you are yet to prepare your documents and file the ITR, its time you do so quickly. It is because the implications of non-filing ITR are very serious.

Implications Of Non-filing IT Returns

First and foremost, a person who fails to file his Income Tax Returns within the stipulated deadline can land in jail. You may also lose on several privileges as an Indian citizen such as getting a loan from a nationalized bank or acquiring a visa to travel abroad. The law implicates that you must file the ITR of only one year at a time. But the due date is not always the last date of filling it. So you can easily file an ITR for the financial year 2018-2019 this year.

In case you failed to file an ITR last year even then you have an opportunity to make use of the extended deadline. However, since you have missed the due date, you will have to pay a penalty of Rs.10,0000. This penalty is mandatory unless your earnings are below Rs.5,00,000. In this case, you have to pay only Rs.1,000 as a penalty. Along with the penalty, you will have to pay interest for the unpaid taxes because you failed to discharge the tax liability on the due date.

Computers and the internet have made everything streamlined. All your bank accounts are linked with your Aadhar card and Pan Card. That is why the Income Tax officials have all your earning details. So when you fail to file the IT return they can make you pay a penalty of a minimum 50% of the tax that you avoided. And these penalties are in addition to the one you will pay as interest for not fulfilling the liability to pay IT returns on time.

Non-filing Of IT Returns Can Land You in Jail

Apart from the penalties, the income tax department can also prosecute you for not filing the ITR on time. According to the tax law, officials can put you behind the bars for a minimum of three years. This jail sentence can be extended further for seven years depending upon the circumstances. However, in the case, the amount of tax is Rs.10,000 or below the punishment of jail sentence is not applicable.