It is important to file Income Tax Returns. Here are the consequences, if you don’t file your Income Tax Returns on time: -
- You may get penalized.
If you fail to file your returns on time, your Assessing Officer can impose a penalty of Rs. 5,000 on you.
- You may receive a non-compliance notice.
Income-tax Department has increased a drive to catch non-filer or non-tax payers. If you have a high-value transaction in a financial year which is linked to your PAN/Name, most probably they know about it and if they find that your Income-tax return has not been filed for that financial year, then they will send you a show-cause notice for not filing the income tax return.
- If you haven’t filed your returns, then you may have to pay tax with interest.
In case of any tax due, you will have to pay taxes with an additional 1% interest on the due amount per month calculated from the due date of filing of returns. Moreover, interest under section 234A, 234B or 234C may be applicable.
- You will not get any refund.
In case of a delay you cannot claim a refund, the Income-tax Department may delay or not issue a refund order for your tax.
Worried about your income tax return? We can help. Reach us here.