Don't be a Non Filer: 5 Consequences Of Not Filing Your Income Tax Return
You may be thinking to yourself, "Why should I be concerned about filing my taxes? After all, I don't owe anyone anything. " Well, let me tell you, there are many consequences of not filing an income tax return that can have a huge impact on your life. Here are 5 of them!
1. Penalties
The tax authority levy heavy penalties on individuals who do not file Income tax return. Here they are –
- You would be required to pay a penalty of Rs 5000 if you submit a return after the due date.
- From April of an AY till July, you must pay interest at a monthly rate of 1% on the unpaid tax payable if the amount owing is Rs 10,000 or more. The monthly interest rate will climb to 2% between August and March of the AY.
- If you don't submit your return before the end of an AY, you'll be subject to steep penalties and interest until you do.
- You must pay an additional 25% of the total amount if the return is filed within 12 months of the end of the AY.
2. Bank Finance
A individual must provide Income tax return for the previous 3 years while applying for house/ car loan or medical treatment.
3. Carry Forward of Losses
You cannot carry forward any losses to next financial year if not filed Income tax return.
4. Best Judgement Assessment
If tax payer fails to file required return within the due date, the assessing officer is under obligation to make an assessment to best of his judgment u/s 144.
5. Claim Of Refund Of Taxes
You cannot claim refund of TDS in case you have not filed your Income tax return.
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