Consequences of non filing of Income tax return

By | April 19, 2016
(Last Updated On: April 19, 2016)

non filing of Income tax return

Notice from Income tax Department 

If you have an Income in India that exceeds the minimum income limit (2.5 lakhs presently) you are expected to file your tax returns.Non filing of income tax returns is a punishable offense and you can be jailed and/or fined heavily for non filing of Income Tax return.

You will be issued notice u/s 142(1) for non-filing of income tax return if the income tax department.

Loss not to be Allowed to Carry Forward

Normally, if you file your return on time losses of this year can be set-off against gain of forthcoming years. Eg. If You have business Loss this year , you can claim set off against business profit next year.

Penalty of Rs 5000

A Penalty of Rs. 5,000 may be imposed under section 271F if belated return is submitted i.e return is submitted after due date of filing of Income tax return

Interest Charged on non Filing of Income Tax return

Interest u/s 234A at the rate of 1% per month/part of the month would be charged

Prosecution under Income Tax Act for non filing of Income tax Return

The Income Tax Act provides for prosecution—rigorous imprisonment of three months to seven years and a fine.Section 276CC of the I-T Act enables such prosecution proceedings.

If you haven’t filed your income-tax returns within the statutory deadline or within the time period available after the I-T department issues a notice, it could result in prosecution. In case of a firm or a company, it is persons responsible for the day-to-day conduct of the business—such as partners or directors—who could face prosecution.

The Supreme Cour has also held that in case prosecution proceedings are initiated, taxpayers have to prove the circumstances which prevented them from filing the I-T returns. Which means that the burden is on the taxpayer to prove that the failure to furnish the I-T returns was not wilful.

Concealment Penalty for non filing of Income tax Return

If you do not file return ,and there are assessable income , you are liable to penalty for concealment of income which range from 100% to 300 %

Also Read :7 Benefit of Filing Income Tax Return

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