Every individual and the business entity in India is required to report his incomes and the tax paid on it through a document known as the Income tax return. It is the form which is required to be filed by the assessee to report his incomes and the tax thereon. The provision regarding the income tax returns are provides under the Income Tax act. There are various ITR forms that needs to be filed by every specific entity within the specified due dates. Failing to file the returns on due time can attract penalty for the assessee and can several other impacts. Today with this blog we will be taking a look at the consequences of non-filing of the Income Tax returns.
What is the due date for filing the Income tax Returns?
The due dates for filing the income tax returns by the eligible assessee is 31st august of the relevant financial year. Thus, every entity must file their due income tax returns in the applicable form before the due dates.
What are the consequences of not filing the Timely Returns?
- If the ITR is not filed within the due time an penalty is levied under the section 234F of income tax act. The amount of penalty from 1 September 2019 to 31st December 2019 will be 1000 in case the income is below 500,000 rupees whereas in case the income is more 5,00,000 the amount of penalty will be 5000. Whereas, the amount of penalty from 1st January 2019 to 31st March 2019 will be 1000 if the income is below 5,00,000 and will be increased to 10,000 if the income is above is 5,00,000.
- If the return is filed within the due date the taxpayer is allowed set off the losses from the various incomes in the coming years. However, if the returns are not filed within the due time the assessee would not be able to set off the losses in the subsequent year of any income other than the house property income.
- In addition to the amount of penalty there is an interest of 1% per month that will be charged on the unpaid amount of taxes if any. The interest will be calculated from date falling immediately after the due date i.e. 31 August 2019 for AY 2019-20.
- Any kind of refunds of excess tax from the government can only be claimed from the government if the proper income tax return is filed within the due dates.
What can I do if my due date for filing the Income tax return is missed?
For all the people failing to file the income tax return within due date there is an option for filing the belated returns. The option to file the belated income tax return can be exercised only till the end of relevant financial year or before the completion of the assessment year. Thus you should ensure to file the returns within the due dates.
After going through the consequences of not filing the income return you may now want to file your income tax return within the due date. To simply file your returns within the due time and without the levy of any fees you can get in touch with the experts at LAWDEF anytime and anywhere.