Penalty for not filing ITR before the due date

Income tax returns (ITR) Filing season is going on and the due date to file a Return of income tax is 31st July 2024. Filing tax returns is significant for every taxpayer in the first place and if filing is done before the due date, it’s beneficial.

But, what if the taxpayers fail to submit their income tax return on time? There would be consequences for failing to file returns on time. Taxpayers have to face certain consequences in case of late filing or voluntarily not filing the tax return.

Consequences of Late Submission of Income Tax Returns

If the return is submitted after the due date of submission after the due date of submission of return of income, the following consequences will be applicable. These rules are applicable even if a belated return is submitted within the time limit of 31st December 2024 for FY 2023-24.

1. The assessee will be liable for penal interest under section 234A

It requires the taxpayer to pay interest at 1% for each month or part of a month beginning on the date following the ITR filing due date, which is July 31st.

2. Late Fees

The assessee shall be liable for late filing fees under section 234F from the assessment year 2018-19 onwards. The section levies late filing fees of Rs. 5,000 (for incomes exceeding Rs. 5 lakhs) and Rs. 1,000 (for incomes less than Rs. 5 lakhs) in case of late filing of ITR.

3. Carry forward of Loss

If a return of loss is submitted after the due date, a few losses cannot be carried forward.

4. Non availability of Income Tax deductions

If a return is submitted belatedly, deduction under the following sections will not be available –

• Sections 10A, 10B, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID, and 80-IE (up to the assessment year 2017-18);
• Sections 10A, 10B, 80-IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, 80-IC, 80-ID, 80-IE, 80-JJA, 80-JJAA, 80LA, 80P, 80PA, 80QQB and 80RRB (from the assesssment year 2018-19).

5. Tax Evasion

Non-filing of an ITR can be considered tax evasion by tax officials, and you could risk imprisonment for 6 months to 7 years.

Filing an Income Tax Return (ITR) might be challenging if you are new to taxes, but CA consultants provide CA-assisted ITR filing services that make the procedure straightforward and comfortable for you. Whether you need assistance with deductions, exemptions, or just understanding your taxable income, online or offline CA services can help you obtain precise and maximum tax refunds, you can get help from them.