Consequences for not filing ITR before the deadline
Filing Income tax returns is one of the most important things to do when your income is above the non-taxable income limit. Even the people whose income is below the taxable income level are advised to file the income tax returns. If you miss the deadline to file the income tax returns, you have to face few consequences that may depend on the reasons for not filing the income and also the amount of your income that is not filed.
The below are few consequences you may face if you miss the deadline
Unable to file the returns after the deadline.
May Receive the Income Tax notice, if your income fall in the taxable limits.
If your motive is to evade tax, then you will face strict severe action legally.
If there is proper reason then you may be asked to pay condonation.
If you fail to file the returns before the deadline, then post the deadline, it will be not possible to file the returns on the income of that period. The returns on that income will be considered as a time barred and there is no provision in the income tax act for such thing. Hence you have to face the further consequences based on the amount of income and the motive behind no filing of tax returns.
If your income is in the taxable slab and you failed to file the income tax returns, then you may receive notice from the income tax department for not filing the returns on the income. In such case you may also face a penalty which will range from 50% to 200% of the tax and also there is an applicable interest on the missed tax payment which is 1% per month of delay.
ANd the main reason that is found behind you not filing the income tax returns is to evade tax, in such case you will have to face severe legal action. Income tax evasion is a serious offence in India and it will call for a serious penalties and punishments.
Prosecution under section 276CC of the Income tax Act can be initiated against such defaulting taxpayers who may be subjected to harsh imprisonment of not less than 3 months and extendable up to 2 years together with fine implications
Further in a case the tax evasion amounts to over Rs. 25 lakh then in such a case imprisonment term could be in the range of 6 months to 7 years together with a fine. Nonetheless in the evaded amount is up to Rs. 10000 then no such prosecution can be undertaken.
But in all these, if the reason behind not filing of income tax returns is genuine and is acceptable by the Income tax department and it is not to evade tax, then you will be allowed to pay penalties. But the decision will completely lie with the deciding body and the decision of that body will be based on all the supporting document that have to be summitted and the decision by them will have to be followed.