The last date for filing income tax returns for the financial year 2018-19 is landing at the terminus as 31st July 2019 (revised due date 31st August) is arriving. Fling a return without waiting for the final date can be beneficial for the taxpayers as failure to fill the returns by the due date due to any reason will not only lead to penalty imposition but may also put the taxpayers behind the bars in addition to other types of economic and financial losses as well.
Prison for Two Years
In the case of non-filing ITRs till the last date, the Income Tax Department sends a notice seeking the rationale for not filing the returns on time. To this notice, a taxpayer sends an answer.
If the answer is not satisfactory and the investigation proves that the ITR is not filed intentionally then the taxpayers may get imprisoned for the duration of three months to two years.
Penalties and Imprisonment on Delay in Filing ITR
- Late or Non-filing of ITR may lead to confinement for the time frame between three months to seven years
- Fine of INR 1000 is promulgated to be charged on delay in filing ITR when income is less than INR 5 lakhs
- Fine of INR 5000 is leviable on filing ITR after 31st July but before 31st December
- Fine of INR 10,000 is leviable if ITR is filed between January 1st to March 31st
Notice is Not a Panic
According to the tax advisors, getting a notice from IT department is not a situation to get panic because when the returns are not filed by the due date, the department first sends the notice to investigate the exact reason for not filing ITR.
On getting a legitimize reason and on taxpayers’ vindicate, IT authorities allows taxpayers to pay a fine and file ITR.
No Interest on Refunds
The passage of more days in filing ITR after the due date interprets the occurrence of more financial loss. Tax consultant K.C.Goduka says that when you file returns on time, the tax department refunds the excess tax paid in the form of TDS or other in addition to the interest on it. But when you file ITR after the due dates, you do not get any interest on refunds by the IT department.
No Concessions
In addition to these benefits, the taxpayers who file ITR after the due dates, have to relinquish other advantages also given by the IT department to the on-time filers of ITR. These benefits include compensation of the losses incurred in the business or share is in the form of tax exemption, deduction to nullify the losses on the sale of houses for the next eight financial years. The loan of a regular return filer gets sanctioned easily and quickly. These benefits along with other concessions are not available for the individuals who file ITRs after the due dates.
