What Happened if ITR not filed on or before due date // SUNIL RAJAI //MONARCH

What Happened if ITR not filed on or before due date // SUNIL RAJAI //MONARCH

Some of the disadvantages of not filing ITR within due date are as follows.

1. Penalty: If you miss the ITR due date, you have to pay Rs 5,000 penalty (Rs 1,000 if taxable income is less than Rs 5 lakh), provided you file it within December 31. For further delay, you have to pay penalty of Rs 10,000.

2. Interest on tax payable: In case there is tax payable, as per the section 234A of the Income Tax Act, you have to pay penal interest of 1 per cent per month on the amount of unpaid tax till the date of payment of taxes.

3. Prosecution: If you willfully don’t pay tax and don’t file your ITR even after getting notice u/s 142 and 148 of the Income Tax Act, you may face prosecution u/s 276CC of the Act.

4. No carry forward of losses: You can’t carry forward the losses to get it adjusted against profits/gains of future years, if you fail to file your ITR within due date.

5. Trouble in getting refund: If you miss the ITR due date, your Return will be processed late and the refund amount, if any, would be released late.

Sunil Rajai
Monarch Taxfile Group
Surat
www.i-tax.in