Jail for not filing ITR: Who has to mandatory file Return of Income Tax

The Due date for filing Income Tax Returns (ITR) for Financial year 2023-24 is 31st July 2024. In case you have Tax Audit applicable under income tax act or any other Audit applicable under any other act, the due date for filing ITR is 31st October 2024. Incase transfer pricing Audit is applicable on you, the due date to file ITR is 30th November 2024.

Consequences for not filing ITR on time:

• Certain losses computed under specified sections cannot be carried forward for set-off in the subsequent years.
• The fee of Rs. 5,000 under section 234F would be leviable where the return is filed after the due date. However, the late fee shall not exceed Rs. 1,000 where the total income does not exceed Rs. 5,00,000.
• Further, as per section 80AC, deductions in respect of certain incomes under Chapter VI-A [Heading C- Deduction in respect of certain incomes] would not be available.
• Taxpayers not having Business Income cannot opt out of the New Tax Regime.

Can you go to jail for not filing a Return of Income Tax?

The answer is yes. As per Section 276CC of Income Tax If a person wilfully fails to furnish in due time the return of income which he is required to furnish under sub-section (1) of section 139 he shall be punishable,—

(i) in a case where the amount of tax, which would have been evaded if the failure had not been discovered, exceeds Rs. 2500,000, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine;

(ii) in any other case, with imprisonment for a term which shall not be less than three months but which may extend to two years and with fine:

However, this provision is not applicable on you if you file the belated return before 31st December 2024 or ITR-U before the time given in section 139(8A).

If your gross total income (before deductions under Chapter VI, e.g., sections 80C, 80D, etc.) exceeds the basic exemption limit, you must file an ITR.

Who has to mandatory file Return of Income Tax?

Here is the basic exemption limit for several categories under the old tax regime in FY 2023-24 (AY 2024-25):

• Individuals under 60 years of age: Rs 2.5 lakh.
• Individuals over 60 but under 80 years of age: Rs 3.0 lakh.
• Individuals over the age of 80: Rs 5.0 lakh.

Here are some stated cases where you must file ITR regardless of your gross total income level:

Saving Bank Deposits of 50 lakhs or more

If an individual’s annual bank deposit in one or more savings accounts is Rs.50 lakh or more, they must file an ITR.

Professional income above Rs. 10 lakh

If your income from a profession surpasses Rs.10 lakh in a financial year, you must file an ITR.

Electricity Bill Exceeding Rs 1 Lakh

If an individual’s electricity bill for the year exceeds Rs.1 lakh, they must file an ITR.

TDS/TCS INR 25,000

If a person’s TDS/TCS is Rs.25,000 or more, then filing an ITR is essential. Senior citizens, on the other hand, face a Rs.50,000 threshold.

Income from Foreign Assets

Individuals who have an asset in a foreign nation, are beneficiaries of an asset in a foreign country, or have signing authority in any account located outside of India must file an ITR.

Expenses on Foreign Travel

Individuals who spend Rs.2 lakh or more on international travel for themselves or others throughout the financial year are required to file an income tax return.

In case you are a company or partnership firm, then also you have to mandatory file the Income Tax Return.