{"id":32466,"date":"2021-07-03T15:13:09","date_gmt":"2021-07-03T09:43:09","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=32466"},"modified":"2021-07-03T15:13:10","modified_gmt":"2021-07-03T09:43:10","slug":"consequences-of-not-filing-itr","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/consequences-of-not-filing-itr\/","title":{"rendered":"Consequences of not filing ITR: A Complete Overview"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Filing an income tax return is something you can\u2019t afford to overlook considering the repercussions that exist within the law. In the write-up, you will become accustomed to the potential consequences of not filing ITR. So let\u2019s get started without any further ado. \u00a0<\/p>\n\n\n\n<p>The IT authority possesses the right to carry out best judgment assessment as per section 144 of the IT Act, in case of non-filing of ITR by the taxpayers. It is pertinent to note that March 31st of every assessment year is the last date for filing an <a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\"><strong>income tax return<\/strong><\/a>. Every taxpayer must abide by this rule of filing or else penalties would be levied as per Act. <\/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\/consequences-of-not-filing-itr\/#Possible_consequences_of_not_filing_ITR\" >Possible consequences of not filing ITR<\/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\/consequences-of-not-filing-itr\/#A_Close_look_at_penal_provisions_for_non-filing_of_return_as_per_us_1391\" >A Close look at penal provisions for non-filing of\nreturn as per u\/s 139(1)<\/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\/consequences-of-not-filing-itr\/#Highlighting_consequences_of_not_Filing_ITR_under_section_234F_of_the_IT_Act\" >Highlighting consequences of not Filing ITR under section 234F of the\nIT Act<\/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\/consequences-of-not-filing-itr\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Possible_consequences_of_not_filing_ITR\"><\/span>Possible consequences of not filing ITR<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>In\ncase the ITR is not submitted by the aforesaid date, then such return shall be\ntreated as time-barred. Under this scenario, the taxpayer is not allowed to\nfile the ITR for the assessment year as there are no provisions in the Act that\nsupport such nature of the filing. <\/li><li>If\nit is found that the taxpayer has intentionally skipped the ITR filing for the\nsake of tax evasion then he\/she may confront severe penalties. <\/li><li>If\nthe taxpayer posses a taxable income and fails to file the return for the same\nthen there are enabling norms to impose a penalty under section 270 A for\nequivalent to 50% of the tax which might be skipped by the taxpayer via\nnon-filing. <\/li><li>Moreover,\nthe IT authority possesses the right to initiate prosecution in view of section\n276CC of the IT Act against the tax defaulters.&nbsp;\nThe Act specifies the rigorous imprisonment for a term not less than\nthree months, which may be extended to two years. In addition to this, a fine\nmay be imposed. <\/li><li>Also,\nin case if the evaded tax amount surpasses Rs 25,00,000, then the defaulter may\nface imprisonment for 6 months-7 years in addition to the fine. <\/li><li>No\ntrial can be executed against the taxpayer where the amount accrued via tax\nevasion activities remains within the permissible limit (Rs 10,000). <\/li><\/ul>\n\n\n\n<p><strong><em>It is vital to remember that the IT authority has the right to carry out the Best judgment assessment u\/s 144 of the Income Tax Act where the taxpayer has committed the filing default. But, section 119(2)(b) vests IT authority with the right to admit any forms or claim for an exemption, refund, deduction, or any other relief even after the expiration of the period cited under the Income Tax Act. <\/em><\/strong><\/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\/section-269st-of-it-act-1961\/\">Section 269ST of IT Act 1961: Explained with Examples <\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_Close_look_at_penal_provisions_for_non-filing_of_return_as_per_us_1391\"><\/span>A Close look at penal provisions for non-filing of\nreturn as per u\/s 139(1)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Apart from these repercussions, the additional\npenal provisions for non-filing of return as per u\/s 139(1) of the IT Act may\ncover taxpayer whenever he\/she submits the return after availing permission\nunder section 119 of the IT Act which includes the following <\/p>\n\n\n\n<ul><li>Delayed\nfiling fees under section 271F of the Income Tax Act worth Rs 10,000 for AY\n2020-21 where such filing is done after the due date under section 139(1) of\nthe IT Act. But, if the taxpayer\u2019s taxable income is up to Rs 5,00,000, such\nfees would be limited to Rs 1000. <\/li><li>Additional\ninterest under section 234A would apply @ 1%\/month or part of the month for the\ntax amount remaining unpaid. <\/li><li>The taxpayer may also lose out on specific deductions and carry forward losses owing to delayed filing as per the u\/s 139(1) of the IT Act.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Highlighting_consequences_of_not_Filing_ITR_under_section_234F_of_the_IT_Act\"><\/span>Highlighting consequences of not Filing ITR under section 234F of the\nIT Act<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If a taxpayer fails to submit a return of\ntheir taxable income on time as per section 139, then such individual may\nconfront a penalty of <\/p>\n\n\n\n<ul><li>Rs\n5000, if the return is submitted on or before the Dec 21 of the Assessment year<\/li><li>Rs\n10000 in any other scenario provided that if the overall income does not\nsurpass Rs 500000, the fee payable as per this section shall not surpass Rs\n1000. <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Details Regarding the Late Filing Fee<\/h3>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>Date\n  of E- Filing <\/strong>\n  <\/td><td>\n  <strong>Overall\n  income Below&nbsp;Rs 5,00,000<\/strong>\n  <\/td><td>\n  <strong>Overall\n  income Above&nbsp;Rs 5,00,000<\/strong><strong><\/strong>\n  <\/td><\/tr><tr><td>\n  10th&nbsp;Jan 2020\n  <\/td><td>\n  Rs 0\n  <\/td><td>\n  Rs 0\n  <\/td><\/tr><tr><td>\n  Between 10th January 2021 to 31st March 2021\n  <\/td><td>\n  Rs 1,000\n  <\/td><td>\n  Rs 10,000\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h3 class=\"wp-block-heading\">Key takeaway:<\/h3>\n\n\n\n<ul><li>If you have encountered any losses during the assessment year, make sure to submit a timely return with the prescribed due date. Failure to this would prevent you from carrying forward such losses to the subsequent years for set off against income in upcoming years. <\/li><li>In case you are eligible to obtain refunds for excess tax submission, you must submit your ITR before the due date to obtain the refund as early as possible. <\/li><li>If you do not file IT returns on or before the due date, you will be entitled to pay interest @ of 1% for every month, or part of a month, on the sum of tax remaining unpaid as per section 234A. <\/li><\/ul>\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>It is in the best interest of taxpayers to make a timely return considering the above-mentioned consequences of not filing ITR. The income tax department makes a continual effort to nudge down the likelihood of tax evasion by altering the existing provisions whenever necessary. \u00a0Therefore, holding ITR for unnecessary reasons could be detrimental for taxpayers both in terms of credibility and short-term benefits. Also, it is not wise to wait for the due date and expect the date extension as it entirely depends on the <strong><em>Government\u2019s<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Government\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> discretion <\/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\/it-return-for-the-deceased\/\">IT Return for the Deceased: A Detailed Outlook <\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Filing an income tax return is something you can\u2019t afford to overlook considering the repercussions that exist within the law. In the write-up, you will become accustomed to the potential consequences of not filing ITR. So let\u2019s get started without any further ado. \u00a0 The IT authority possesses the right to carry out best judgment [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":32474,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[1844],"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":4528,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/32466"}],"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=32466"}],"version-history":[{"count":17,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/32466\/revisions"}],"predecessor-version":[{"id":32486,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/32466\/revisions\/32486"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/32474"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=32466"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=32466"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=32466"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}