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Sunday, 21 July 2019

Disadvantage/Problems of Not Filing ITR with in Due Date (31.07.2019)



Image result for itrWhat happened if ITR (Income Tax Return) not Filed on or before 31.07.2019

ITR Filing

After the end of a financial year, earning individual and entities need to calculate total income earned during the year and report it through Income Tax Return (ITR) within the due date.

Trigger Point:

ITR filing will be mandatory for you, if your earning is above the exemption limit of Rs 2.5 lakh or there was any TDS.
If you are a super senior citizen or your income is less than Rs 5 lakh, you may file your ITR offline.

Due date:
Unless extended, the due date of e-filing of Income Tax Return 2019-20 is July 31, 2019 for Body of Individuals (BOI), Hindu Undivided Family (HUF) and Association of Persons (AOP) including businesses whose Books of Account are not required to be audited, while the due date for the businesses requiring audit is September 30, 2019.

What Happened if ITR not filed on or before due date :

Some of the disadvantages of not filing ITR within due date are as follows.

1. Penalty: If you miss the ITR due date, you have to pay Rs 5,000 penalty (Rs 1,000 if taxable income is less than Rs 5 lakh), provided you file it within December 31. For further delay, you have to pay penalty of Rs 10,000.

2. Interest on tax payable: In case there is tax payable, as per the section 234A of the Income Tax Act, you have to pay penal interest of 1 per cent per month on the amount of unpaid tax till the date of payment of taxes.

3. Prosecution: If you willfully don’t pay tax and don’t file your ITR even after getting notice u/s 142 and 148 of the Income Tax Act, you may face prosecution u/s 276CC of the Act.

4. No carry forward of losses: You can’t carry forward the losses to get it adjusted against profits/gains of future years, if you fail to file your ITR within due date.

5. Trouble in getting refund: If you miss the ITR due date, your Return will be processed late and the refund amount, if any, would be released late.

Source: Financial Express
This Content is only for Awareness Purpose.

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