“It is every Indian citizen’s duty to File the income tax returns on or before the due dates as per section 139(1)”. In case any individual hasn’t filed their income tax returns in India before the prescribed date, then he or she can submit their belated IT returns within the period of two years, that is, from the end of FY. And if you didn’t file an income tax return in India even after that prescribed time period, then it is said to be time-barred. According to Chapter XXII of the Income-tax Act, 1961, tax nonpayment can lead to hefty penalties along with evaded tax, and in some cases, it may be penal, meaning even the concerned authority can land the person in jail for a time term of 7 years.
If a taxpayer misses the ITR due date, his/her returns will be processed late and the refund amount, if any, will be released late. A late filing fee will be applicable for filing your returns after the due date under section 234F. Late filing fees u/s 271F of the IT Act amount to Rs 10,000 for AY 2020-21, where such return is filed beyond the due date u/s 139(1) of the IT Act. However, if the taxpayer’s total income is up to Rs 5,00,000, such late fees would be restricted to Rs 1,000. The maximum penalty is Rs. 10,000. If you file your ITR after the due date (30th Sep) but before 31 December, a penalty of Rs 5000 will be levied.
The following cases may be counted as Non-Compliance/ Not Filing Income Tax Return India:
Not Filing Income Tax Returns in India
If an individual who is eligible to submit the income tax returns fails to submit the income tax return under the Section 139, subsection (1) of Income Tax Act then the respective authorized officer can issue the person with a penalty notice.
Following is the list of penalties that will be imposed for Late Filing of Return as per the Section 234F:
- Rs.5,000 is levied for filing ITR after the prescribed date but earlier than 31st December of the AY.
- Rs. 10,000 is levied for filing the ITR between 31st December and 31st March of the AY.
- And in case, the total income of the person is less than Rs. 5,00,000 the penalty of Rs.1,000 is levied up to 31st March of the AY.
- As per section 234 A/B/C, an interest penalty is also imposed for the late filing fees for the ITR.
Note that after the end of an AY, any individual will not be able to file the Income Tax Returns.
Not providing PAN or quoting the wrong PAN.
If you do not provide your PAN number at the time of employment, 20% of your TDS will be deducted instead of the regular 10%. And for incorrect PAN details, a penalty of Rs 10,000 is imposed. Presently, The basic exemption limit for ITR filing for resident individuals who are below 60 years is Rs 2.5 lakh.
Not checking Form 26AS.
For any mismatch or wrong details in form 26AS can result in severe punishment.
Not paying Tax as per self-assessment.
Under Section 140 A (1) of Income Tax Act, if any person fails to pay either wholly or partly interest or self-assessment tax then that individual will be charged with a penalty by the assessing officer.
Concealing Income to evade tax
As per section 271(C) of the Income Tax Act, the penalty for providing wrong information or details of your income or hiding income tax will be 100% to 300% of the tax evaded.
According to section 271 AAB, the penalty may vary depending on the different scenarios:
- If the taxpayer accepts the unrevealed income then only 10% of the previous year’s undisclosed plus interest will be imposed.
- If the taxpayer does not bring out the undisclosed amount but brings in the return of income provided in the last year, a penalty of 20% of the undisclosed amount plus interest will be imposed.
- If the amount is unrevealed in the last year then the minimum 30% and maximum 90% penalty can be imposed.
Not Complying with the income tax notice in India.
If a taxpayer fails to file the notice issued by IT department as per Section 142(1) or 143(2) then the assigned officer can issue a notice, stating to file the IT return or to submit all the details of assets and financial obligation in writing format.
