Consequences of not Filing Income Tax Return on or before the Due Date

Consequences of not Filing Income Tax Return on or before the Due Date

We need to file the IT return on or before due date as mentioned in Income Tax Act. There are number of consequences of not filling the Return of Income under Income Tax, which are as below:

Late Filling Fee/ Penalty

Late Filing Fee Details
E- Filing Date Total income Below Rs 5,00,000 Total income Above Rs 5,00,000
Upto 31st July 2018 Rs 0 Rs 0
Between 1st Aug 18 to 31 st Dec 18 Rs 1,000 Rs 5,000
Between 1st Jan 19 to 31st March 19 Rs 1,000 Rs 10,000

No Set off losses

If the return has not been filed within the due date, losses incurred (other than house property loss) are not allowed to be carried forward to subsequent years to be set off against future gains.

However, if there are losses under house property, carry forward of losses is permitted.

Interest on the delay of filing return

An interest under section 234A at 1% per month or part thereof will be charged till the date of payment of taxes.

It is important to note that ITR cannot be filed if taxes haven’t been paid. The calculation of the penalty will start from the date falling immediately after the due date i.e. 31st July 2018. So, the longer you wait the more you pay.

Delayed Refunds

Delay in filling the IT Return leads to delay in receipt of refund, in case we have paid excess taxes. We must file your return before the due date to receive the refund at the earliest.

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