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What happens if I do not file income tax return?
If an individual earns a taxable income, then they are supposed to file Income Tax Return , it is the sign of a responsible citizen. Time and again, the Income Tax Department notifies the taxpayers to file their Income Tax Return in order to avoid the following consequences: -
Penalty
The tax filing should be done on time, otherwise the taxpayer will have to pay certain amount of penalty for late filing to the Income Tax Department. For Financial Year 2017-18, the penalty for late filing can go upto Rs. 10,000.
Less time for filing revised return
If you make any error while filing your Income Tax Return, as per the new rules you can revise your ITR only till 31st March 2019 for the F.Y. 2017-18. This may give less time or no time to you if you file late Income Tax Return.
Interest will be levied on the tax amount
When income tax return is not filed within the due date or the stipulated time, interest at the rate of 1 percent per month or part of the month is levied upto the date of filing the ITR . The said interest is payable on tax payable after deducting the TDS (tax deducted at source), TCS (tax collected at source), advance tax and other reliefs/ tax credits available under the law.
No carry forward of losses
If the taxpayer fails to file Income Tax Return by the due date, then he/ she will not be able to carry forward losses under the following heads: -
- Profits and gains of business or profession
- Capital Gain
Delay in ITR Processing
Once the income tax return is filed and verified, the Centralised Processing Center, Bengaluru processes the return. After the processing of ITR, the refund is generated, if you fail to file your ITR or late file it you will not receive your tax refund or receive it late.
It is thus advisable for every taxpayer to file income tax return (ITR) well in time and avoid various consequences including levy of Penalty.
