Consequences of not filing the ITR

Last updated: 22 May 2021

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Not filing your Income Tax Return (ITR) by the deadline can result in significant financial penalties. Section 234F imposes a fee for late filing, while Section 270A can levy a penalty of 50% of your under-reported income. In more serious cases, Section 276CC outlines penalties for wilfully failing to furnish your return, which can include rigorous imprisonment and fines, particularly if tax evasion exceeds £25,000.

Fee or Penalty for the Default in the Filing of Return of Income (Individual)

Section 234F

Section 270A

Penalty is 50% of Tax Payable on under-reported Income.
Under-Reported Income means:

In a case where Income has been assessed for the first time

If Return not furnished, the difference between the amount of income assessed and the maximum amount not chargeable to tax.
If Return has been furnished, the difference between the amount of income assessed and the amount of income determined under clause (a) of sub-section (1) of section 143;

Don t Miss Your ITR Deadline: Avoid Penalties

In a case where Income has been already assessed

The difference between the amount of income reassessed or recomputed and the amount of income assessed, reassessed or recomputed in a preceding order.

Section 276CC

Wilfully fail to furnish Return of Income, and

If evaded amount of Tax > 25 lakhs then rigorous imprisonment from 6 months to seven years with fine.
If evaded amount of Tax ≤ 25 lakhs then rigorous imprisonment from 3 months to two years with fine.

No prosecution If,