Well, let me tell you, there are many consequences of not filing an income tax return that can have a huge impact on your life. Here are the Consequences Of Not Filing Your Income Tax Return.
Income Tax Department Impose Heavy Penalties
Tax authorities impose heavy penalties on individuals who do not file income tax returns. Here it is –
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- if you submit the return after the due date, you will have to pay a penalty of Rs 5000.
- From April to July of an AY, you must pay interest at a monthly rate of 1% on the unpaid tax payable if the outstanding amount exceeds Rs. 10,000 or more. The monthly interest rate will increase to 2% between August and March of the AY.
- If you do not submit your return before the end of the AY, you will be liable to incur heavy penalties and interest until you do.
- If the return is filed within 12 months of the end of the AY, you will have to pay an additional 25% of the total amount.
Trouble in Getting a Finance from Bank
A person must provide an income tax return for the last 3 years while applying for a home/car loan or medical treatment. Thus, if you do not file your ITR then may be a problematic situation in getting the loan from Bank.
Recommended Blog:Â Income Tax Return Filling is Mandatory in 10 Cases
Carry Forward loss
If You have a Loss from business in the Current year and want to carry it forward then you need to file your ITR before the Due DATE. You cannot carry forward any loss to the next financial year if you have not filed an income tax return.
Best Judgement Assessment
If a taxpayer fails to file the required return within the due date, the assessing officer is under obligation to make an assessment to the best of his judgment u/s 144.
Claim Of Refund Of Taxes
You cannot claim a refund of TDS in case you have not filed your Income tax return.
Also check: Computation of Total Income And Tax Payable By An Individual – Step By Step Procedure
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