File Your Income Tax Return on Time to Avoid Penalties

The deadline for filing your Income Tax Return (ITR) is quickly approaching.

To ensure compliance, it is crucial to start collecting the necessary documents now.

Filing your ITR within the given timeframe will make the process much easier and help you avoid incurring late fees and penalties.

Neglecting to file your tax return can result in serious consequences, including potential criminal proceedings initiated by the Income Tax Department.

Last Date for Filing Income Tax Return

According to Section 139(1) of the Income Tax Act, the deadline for filing your income tax return for the fiscal year 2022-2023 is July 31, 2023, for individuals who are not required to undergo an audit.

For taxpayers and companies subject to audit under Section 44AB, the deadline is extended to October 31, 2023.

If you are unable to file your return within these dates, you can still file it until December 31, 2023.

However, it’s important to note that you won’t be able to carry forward any losses, including losses from investments in shares, if you file after the initial deadlines.

Consequences of Non-Filing

Failing to file your income tax return by December 31, 2023, may result in having to file an updated return while paying additional tax.

The following rules apply: if you file within one year from the end of the relevant assessment year, you will be required to pay an additional 25 percent tax.

If you file within two years from the end of the assessment year, the additional tax increases to 50 percent.

Criminal Proceedings for Non-Filing

Under Section 276CC of the Income Tax Act, willfully failing to file your income tax return can lead to criminal proceedings initiated by the Income Tax Department.

If the tax evasion amount exceeds Rs 25 lakh, the individual can face imprisonment ranging from 6 months to 7 years, along with fines.

In other cases, imprisonment can range from 3 months to 2 years, along with fines. However, if the tax owed is less than Rs 10,000, no legal action can be taken.

Compounding Option

In case legal action is initiated against you for non-filing, there is a provision for compounding under Section 279(2) of the Income Tax Act.

This allows you to apply for compounding and, instead of serving a jail sentence, pay additional fines.

To avail of this option, you must submit an application to the Income Tax Authority.

The Income Tax Department has been increasingly stringent in recent years regarding taxpayers who fail to file their returns or pay taxes.

As the deadline for filing your income tax return approaches, it is highly advised that all taxpayers

begin gathering their documents and submit their returns within the stipulated time.

Failure to do so may result in receiving a notice from the Income Tax Department at a later stage.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest

More Articles

- Advertisemet -