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

From 1st April 100% tax returns will be scrutinise and tax evasion will be history in India.

From 1st April 100% tax returns will be scrutinise and tax evasion will be history in India.

Imagine a Tax tracker software which cost government more than Rs 1000 Crore and several years of building it, just to track expenses of all assesssee based on big data and then suggest department to pick up cases for scrutiny. That’s what India tax department is going to implement from 1 April 2019

Big data Software which can be use to track tax evader is reality for Income Tax department. As per our sources the Income Tax Department has given access to the software on 15 March 2019.

Now if you are travelling foreign county and posting pictures on social media, buying an luxury car and its beyond your income as per your returns filed, then Income Tax Department can use big data to analyse it and check the mismatch between your earning and spending. The process can easily use complete trail for even new tax filer. Also Department can prepare a master file having all details and key information about individuals and corporates.

The basic idea is to catch the tax evaders and also increase number of people to file returns and pay tax, who are not filing returns. The Insight project will feature an integrated information management system, which will harness machine learning to help take the right step and the right time. It will entail collecting relevant web pages and documents that could be probed

India now joins a select league of countries like Belgium, Canada and Australia that are already using big data to keep a check on evasion. It is estimated that in case of Britain launched similar software at estimated cost of 100 million pounds. Since its inception in 2010, the system has prevented the loss of 4.1 billion pounds ($5.4 billion) in revenue. These cases would have mostly remained undetected without cutting-edge analytics.

The software will ensure 100% Scrutiny of all the returns filed and selection based on thousands of small parameters.