Consequences of ignoring ITR

The Income Tax Return, or ITR, as it’s commonly known, is an official document that you should file every year as per government regulations. While it might seem like another tedious government requirement, filing your ITR is necessary if you want to avoid some severe consequences. If you desire to learn more about this topic and the consequences of not filing your ITR, you’re in the right place! This blog will discuss the various repercussions of not filing your ITR and why you should be thinking about them this season on a serious note.

Filing an Income Tax Return (ITR) is an essential responsibility for taxpayers in India. Ignoring or failing to comply with the filing of an ITR could have serious consequences, both financial and legal. It is essential to understand these consequences so that taxpayers can avoid them.

Hence, it is essential to understand these consequences so taxpayers can avoid them.

• The most immediate consequence of not filing your ITR is a financial penalty.
• According to the Income Tax Act, if taxpayers fail to file their return by the due date, they will be liable to pay a penalty of around Rs 10,000.
• This amount could be even higher if the amount of tax due is more than Rs 10,000.
• Additionally, if taxpayers file their return after the due date but before 31st December of the assessment year, they may be liable to pay a penalty of up to Rs 5,000.
• Aside from financial penalties, not filing your ITR can also have legal repercussions.
• According to the Income Tax Act, failing to file an ITR on time is a punishable offense and can lead to jail time for up to seven years.
• Furthermore, in case of discrepancies between the income declared in the ITR and the actual income earned, the taxpayer may be liable for prosecution under the provisions of the Black Money and illegal gains (Undisclosed Foreign Income & Assets and the Imposition of Tax Act, 2015)
• Apart from this, non-compliance with ITR filing can also lead to problems like loss of creditworthiness, disqualification from various government benefits and schemes, and other troubles.

Therefore, it is crucial to understand the consequences of not filing an ITR and take the necessary steps to ensure compliance with tax laws. It is always better to be proactive in paying taxes and filing returns on time, as it can save taxpayers from hefty financial penalties and legal repercussions.??(Read also:?Recent changes in the procedure for furnishing Form 10F)

Here are some important pointers to remember:

• File the ITR before 31st July of every year
• Keep all relevant documents ready
• Make sure that the data submitted?on the form is accurate
• Check your name, address, PAN card number, and Date of Birth carefully

Conclusion

The Indian income tax department has strict rules about filing an income tax return, or ITR. ITR filing is required for people who earn more than the exemption threshold of Rs. 2,50,000 per year and failing to do so can have serious repercussions that can be detrimental to your money and peace of mind.

This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise.?AKGVG & Associates?does not intend to advertise its services through this.