{"id":29705,"date":"2021-05-04T12:01:23","date_gmt":"2021-05-04T06:31:23","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=29705"},"modified":"2025-02-21T18:37:27","modified_gmt":"2025-02-21T13:07:27","slug":"potential-consequences-of-not-filing-the-income-tax-return","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/potential-consequences-of-not-filing-the-income-tax-return\/","title":{"rendered":"Potential Consequences of Not Filing The Income Tax Return"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The entire salaried class individual is liable to file ITR every year. The Indian government has put those outside the taxable regime who earn between Rs 2.5 lakh and 5 lakh. Other than, that has to file their ITR under the prescribed due date. A taxpayer can claim a refund for additional tax paid during the fiscal year by <a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\" title=\"Income Tax Return Filing\"><strong>filing Income tax return<\/strong><\/a>.<\/p>\n\n\n\n<p>March is a crucial month for\nthe taxpayers as it is the last month of the fiscal year. Apart from staying in\nline with the Income tax-based deadlines, taxpayers must also address\ntax-saving exercises by March 31. Keep in mind that the said date is also the\nlast date for linking PAN with Addhaar.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/potential-consequences-of-not-filing-the-income-tax-return\/#What_are_the_Penalty_Provisions_under_the_Income_Tax_Act\" >What\nare the Penalty Provisions under the Income Tax Act?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/potential-consequences-of-not-filing-the-income-tax-return\/#Viable_Punishments_for_not_Filing_the_Income_Tax_Return\" >Viable\nPunishments for not Filing the Income Tax Return&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/potential-consequences-of-not-filing-the-income-tax-return\/#Best_Judgment_Assessment_under_section_144\" >Best\nJudgment Assessment under section 144<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/potential-consequences-of-not-filing-the-income-tax-return\/#Important_Dates_not_to_be_Missed_by_the_Taxpayers_to_Avert_Penalties\" >Important\nDates not to be Missed by the Taxpayers to Avert Penalties<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/potential-consequences-of-not-filing-the-income-tax-return\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Penalty_Provisions_under_the_Income_Tax_Act\"><\/span>What\nare the Penalty Provisions under the Income Tax Act?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Given the Income-tax norms, an\nindividual is liable to pay Rs 5,000 if a return is provided on or before\nDecember 31 of the assessment year. The penalty will rise to Rs 10,000 if the taxpayer\nfiles the return in the subsequent year between January 1 and March.<\/p>\n\n\n\n<p>If the taxpayers do not file\nthe income tax return, then they would dissolve their rights to carry forward\nthe losses of the ongoing assessment year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Viable_Punishments_for_not_Filing_the_Income_Tax_Return\"><\/span>Viable\nPunishments for not Filing the Income Tax Return&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A penalty can be levied on a\nperson, a minimum of 50% of assessed tax maximum of 200% of the assessed tax.\nFurthermore, the assessee may confront prosecution, including rigorous\nimprisonment to seven years in extreme cases.<\/p>\n\n\n\n<p>This may occur in a situation the willful default to provide income tax return &amp; tax payable (after deducting taxes paid &amp; TDS) surpasses Rs 10,000.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/income-tax-returns-which-is-the-correct-itr-form-for-you\/\">Income Tax Returns: Which is the Correct ITR Form for you?<\/a><\/mark><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Penalty u\/s 271F of Income Tax Act, 1961<\/h3>\n\n\n\n<p>If a taxpayer fails to submit the return before the end of the assessment year, the assessing officer may impose a penalty as follows:-<\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody>\n<tr>\n<td width=\"387\">\n<p><strong><em><u>Date of Filing<\/u><\/em><\/strong><\/p>\n<\/td>\n<td width=\"179\">\n<p><strong><em><u>Fees Applicable (INR)<\/u><\/em><\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"387\">\n<p>If the return is submitted after the deadline of filing but on or before the 31st day of December.<\/p>\n<\/td>\n<td width=\"179\">\n<p>5000\/-<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"387\">\n<p>In any other case<\/p>\n<\/td>\n<td width=\"179\">\n<p>&nbsp;10,000\/-<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" width=\"566\">\n<p>Note: &nbsp;If the aggregate income of a taxpayer remain below the Rs 5,00,000, the fee payable under the said section would not surpasses Rs 1000\/-<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h3 class=\"wp-block-heading\">Penalty for Non-Disclosure of Income<\/h3>\n\n\n\n<p>If you are isolating your\nIncome from applicable taxes and skipping the requirement for filing the ITR,\nyou may end up confronting the penalty levied by the IT department.<\/p>\n\n\n\n<p>In such cases, the penalty\nunder section 270A will be levied under such circumstances. Therefore, illegal\nprocurement of taxable Income is highly vulnerable to a heavy penalty.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Best_Judgment_Assessment_under_section_144\"><\/span>Best\nJudgment Assessment under section 144<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The assessing officer is liable to carry an assessment to the best of his\/her judgment in the given scenarios:-<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>If the taxpayer skips the return filing required within the\ndeadline as per the section 139(1) or a delayed return u\/s 139(4) or a revised\nreturn u\/s 139(5).<\/li>\n\n\n\n<li>If the taxpayers overlook the terms of the notice issued u\/s\n142(1) or fails to ensure conformity with the direction issued u\/s 142(2A)<\/li>\n\n\n\n<li>If the taxpayer fails to ensure conformity with the terms of\nnotice issued u\/s 143(2).<\/li>\n<\/ul>\n\n\n\n<p>Therefore, non-filing of ITR\nmay lead to the best judgment assessment. This is referred to an assessment\nconducted as per the best judgment of the Assessing Officer based on\naccumulated documents that act as evidence.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Important_Dates_not_to_be_Missed_by_the_Taxpayers_to_Avert_Penalties\"><\/span>Important\nDates not to be Missed by the Taxpayers to Avert Penalties<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The IT department has already\nrolled out the annual calendar of tax-based dates for the financial year 2021.\nKeeping these dates in mind is extremely important for the taxpayers to avert\nfuture consequences. The issued calendar entails all the important dates, such\nas the due date for filing ITR and the last date for paying the advance taxes.<\/p>\n\n\n\n<p>Just like the preceding\nfinancial year, this year, too, the tax authority has sent emails to eligible\ntaxpayers that comprise of a link to download its tax calendar.<\/p>\n\n\n\n<p>We would like to draw your\nattention to the important Income tax-related dates<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">7 May 2021 \u2013<\/h3>\n\n\n\n<p>It is last date for depositing Tax\ndeducted\/collected for April 2021. But, all sum collected\/deducted by a\ngovernment\u2019s office will be paid to the central government\u2019s credit on the day\nwhere tax is paid without an Income-tax Challan<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">15 May 2021 \u2013<\/h3>\n\n\n\n<p>It is a due date for the\nissuance of TDS certificate against the tax deducted u\/s 194-IA in the month of\nMarch, 2021. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">15 May 2021 \u2013<\/h3>\n\n\n\n<p>It is a due date for the issuance of <a href=\"https:\/\/corpbiz.io\/tds-return-filing\"><strong>TDS<\/strong><\/a> certificate against the tax deducted u\/s 194M in the month of March, 2021. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">15 May 2021<\/h3>\n\n\n\n<p>It is the Due date for furnishing of Form 24G by a <em><strong>government office<\/strong><\/em> where TCS\/TDS for April 2021 has been paid in the absence of challan. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">15 May 2021<\/h3>\n\n\n\n<p>Quarterly statement related to\nTCS deposited against the quarter ending March 31, 2021<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">15 May 2021 \u2013<\/h3>\n\n\n\n<p>It is a Due date for providing\nstatement in the Form no. 3BB by a stock exchange regarding transactions, in\nwhich codes of the client have been altered after registering for the month of\nApril, 2021<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">30 May 2021 \u2013<\/h3>\n\n\n\n<p>It is a due date for providing\nstatement in Form No. 49C by foreign national having liaison office in India\nfor FY 2020-21. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">30 May 2021 \u2013<\/h3>\n\n\n\n<p>It is a due date for providing challan-cum-statement\nregarding tax deducted u\/s 194-IA in the month of April, 2021<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Paying income tax returns on time provides endless benefits to the taxpayer. The legitimate taxpayer always gets the reward for filing the ITR within the deadline.<strong> Taxpayers<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/en.wikipedia.org\/wiki\/Taxpayer\"><strong>[1]<\/strong><\/a><\/sup> with seamless tax filing records are eligible to access the benefits like seamless visa processing, relaxation in government-based tenders, carrying forward the losses, and buying high life cover.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/what-is-filing-procedure-and-penalties-associated-with-nil-income-tax\/\">What is Filing Procedure and Penalties Associated with NIL Income Tax?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The entire salaried class individual is liable to file ITR every year. The Indian government has put those outside the taxable regime who earn between Rs 2.5 lakh and 5 lakh. Other than, that has to file their ITR under the prescribed due date. A taxpayer can claim a refund for additional tax paid during [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":29709,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[28],"acf":{"service_id":"403"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":4107,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/29705"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=29705"}],"version-history":[{"count":11,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/29705\/revisions"}],"predecessor-version":[{"id":68851,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/29705\/revisions\/68851"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/29709"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=29705"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=29705"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=29705"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}