ITR Update: For not filing ITR, you will have to pay this much fine along with 7 years imprisonment, know the rules...
This time the last date to file an Income Tax Return (ITR) is 31st July. ITR should be filed by this date. Every person should file an ITR. Whether any liability is being incurred on it or not. However, people who fall in the income tax slab must file an ITR. If you do not file an ITR, you may not only be fined but may also receive a notice from the Income Tax Department.
Such charges are incurred
If you do not file income tax on time, you have to pay interest along with late fees. If a person still does not file an ITR, he may have to face a notice from Income Tax. If you do not file ITR by March 31, you may have to pay the following penalty:
Late Fee: If you do not file ITR by July 31, then a fine of Rs 5,000 is imposed as a late fee. This amount of fine can be up to Rs 10 thousand. However, if the annual income is less than Rs 5 lakh then the amount of fine remains at Rs 1,000.
Interest: If tax liability is incurred, then one percent annual interest will have to be paid on the amount.
You may get notice
If a person does not file an ITR on time, he may also get a notice from the Income Tax Department. However, in cases where the tax liability is high (in lakhs), the punishment can be up to 7 years. Keep in mind that the losses of the current assessment year cannot be carried forward to the next financial year.
ITR can be filed even after July 31
Well-known chartered accountant Sushil Aggarwal says that if for some reason you are not able to file ITR by 31st July, then you can file it as a belated return even after 31st July along with interest and penalty. It is also worth noting that you cannot carry forward losses in such returns. This process is called belated ITR (delayed filing of returns). The last date to file a belated ITR is December 31, 2024. If you are not able to file ITR even by December 31, then you can file an updated return in which you have to deposit 25 to 50 percent more tax of the tax payable. Under Section 119 of Income Tax, you can also get permission from the Principal Commissioner to file late ITR in genuine situations. However, there are many conditions in this. For more information about this, consult a CA or tax expert.
Follow our Whatsapp Channel for latest update