What happens if you do not file your Income Tax Return in India?
ITR or the income tax return is a financial responsibility of every citizen who comes under the taxable bracket. This varies according to the annual income for each citizen and companies. Income tax return is the proof of your financial transactions for the assessment year and your gross income. To make this gross income to net income after the taxes ITR is essential and a legally valid document of your business and income proof.
· Do You Know About The Different Income Tax Return Forms:
There are totally 7 income tax return forms. They are called ITR1 – ITR7 and each category of individual or commercial and other different types will have to use the appropriate ITR form for assessment by the authorities.
· By What Time You Can To File Income Tax Return:
For the financial transactions or for the salary incomes for the financial year i.e. from the 1st April of this year to 31st March have to be filed at the appropriate dates announced by the Government. For last year it was as follows:
· 31st August 2018 for individuals
· 30th September 2018 for companies
· 30th November 2018 for anyone to furnish a report in Form No.3CEB under section 92E
What Happens If You Do Not File Your Income Tax Return In India?
So, what happens if I do not file my Income tax return in time. It is always better to follow rules or pay the price eventually. Following are the few unfavorable things that may happen to you.
Ø Interest on payable tax:
A 1% interest will be levied for the taxable amount after TDS every month till the ITR is filed.
A flat penalty of Rs. 1000 will be imposed on those who file income tax returns after the due date but before December 31st. For that above income of rupees 5 lakhs it is Rs. 5000 when paid before 31st December and it is Rs. 10000 for those beyond that deadline.
Ø No capital gain’s loss after due date:
If returns are filed after the due date there will no provisions allowed to carry forward any loss under the head capital gains or profits and gains of businesses and professionals.
Ø Delayed income tax filing reduces chances of revising ITRs:
From the current year, any revisions in the ITRs have been reduced to one year from the previous two-year limit. Hence if you file your ITR belatedly then your chances of revising it also get reduced now.