What If You Do Not File Your Income Tax Returns?

Income Tax come could be a prescribed format through that an individual has got to disclose the financial gain that's attained by an individual in an exceedingly year. The taxes on this financial gain have to be compelled to be paid to the revenue enhancement Department by the tip of the year. There square measure totally {different|completely different} slabs of taxes for folks from different financial gain slabs. There additionally exists a minimum block, on top of that it's necessary to file revenue enhancement returns. The revenue enhancement Department typically keeps causing reminders to persons to file their revenue enhancement returns. though folks will file their revenue enhancement returns at a later date, there square measure sure consequences connected to constant. This come that is filed on a later date is thought as a tardy come. Such a come is allowable to be filed beneath Section 139(4) of the revenue enhancement Act.

This article seeks to analyse the results of not filing revenue enhancement returns. the subsequent square measure the circumstances which will arise if you are doing not file your revenue enhancement returns-

Penalty

There exists a three-tier fee system in situ for persons UN agency don't file their revenue enhancement returns at intervals the stipulated date for doing therefore. If the revenue enhancement come is filed when the maturity date however before the thirty first of December, a fine of Rs. 5000 is due additionally to the taxes that such an individual is needed to pay. In different cases, i.e. once the revenue enhancement come is filed on or when first Jan, the fine that's levied are Rs. 10000. However, in cases wherever the revenue enhancement come of taxpayers doesn't exceed Rs. 5 lakhs, the fees due is Rs. 1000.

Reduced time-frame during which the Revised revenue enhancement come will be crammed

If miscalculation is committed whereas filling the revenue enhancement come, one will file a revised revenue enhancement come. Earlier, taxpayers had the posh of filling a revised revenue enhancement come at intervals a amount of 2 years, but currently that point amount has been reduced to a year. Thus, the sooner the revenue enhancement returns square measure crammed, a lot of the time one would have to be compelled to revise the returns if needed.

Levy of Interest on the Tax quantity

In things during which revenue enhancement returns don't seem to be filed until the maturity date, interest is levied within the sort of a penalty at the speed of 1 Chronicles per month together with the month during which the payment is finally created. This tax is due when deducting the tax subtracted at supply, tax collected at supply, advance tax and different tax credits that square measure accessible beneath the provisions of the revenue enhancement Act.

Bar on the carry over of Losses

If revenue enhancement comes don't seem to be filed before the maturity date then the person filing the revenue enhancement return when the maturity date won't be allowable to hold forward any losses that square measure unremarkably allowed beneath the pinnacle of “profits and gains of business or profession” or “capital gains”. However, unabsorbed depreciation is allowable to be carried forward beneath the pinnacle of “income from house property”

There square measure a bunch of associated issues that one would possibly face as a result of a delay in filing revenue enhancement returns. These issues whereas in some way coupled to the revenue enhancement Department, would still cause issues to the payer. a number of them square measure mentioned below-
1. Banks contemplate the revenue enhancement Returns of the past 3 years after you have to be compelled to apply for a loan. Thus, throughout the time of application, problems may arise as a result of filing your revenue enhancement Returns late.
2. The revenue enhancement Authorities tend to scrutinise those accounts a lot of that square measure submitted late as against those that square measure submitted on time. this might cause a state of affairs wherever you've got to submit proofs Associate in Nursingd an revenue enhancement come will come back beneath scrutiny until five years later, a time at that you may not be in possession of the requisite proofs.

In lightweight of the assorted disadvantages related to a delayed filing of revenue enhancement returns, it's continuously wise for taxpayers to file their returns on time.

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