If I don’t file Income Tax Returns on time, what can be the consequences?

It is important to file Income Tax Returns. Here are the consequences, if you don’t file your Income Tax Returns on time: -

1. 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.

2. 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.

3. 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.

4. 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.