No file income tax return

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Querist : Anonymous

Querist : Anonymous (Querist)

15 August 2012 I file Income Tax return up to A.Y.2006-07 after that no file return for proprietor business even though taxable income but now i want to file income tax return so what consequence i face about it. what amount of penalty applicable

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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16 August 2012 You can file the return for AY 11-12 and AY 12-13 only.

Returns for the earlier time periods are time barred and CANNOT be filed now.

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2012 what amount of interest and penalty applicable on above problem.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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04 August 2024 Filing income tax returns for previous years, especially when you have not filed them for several years, can lead to various consequences and obligations. Here’s a detailed guide on what you might face and the applicable penalties and interest.

### **1. **Consequences of Not Filing Returns**

- **Interest on Tax Due**: You will need to pay interest on any tax that was due for the years you missed. The interest is calculated from the due date of the return until the date of payment.

- **Penalties**: Penalties can be levied for the delay in filing the returns. The penalties vary depending on the year and the circumstances.

- **Legal Consequences**: Persistent failure to file returns might attract legal action from the Income Tax Department, including prosecution under Section 276C of the Income Tax Act.

### **2. **Interest and Penalties**

#### **Interest**

- **Section 234A**: Interest for delay in filing returns is charged under Section 234A. It is calculated at 1% per month or part of a month on the tax due from the due date of the return until the date of filing.

- **Section 234B**: If advance tax was not paid or was underpaid, interest under Section 234B will be applicable at 1% per month from the end of the financial year to the date of filing the return.

- **Section 234C**: Interest for deferment of advance tax under Section 234C is charged at 1% per month for the period of deferment.

#### **Penalties**

- **Section 271F**: For the financial years up to A.Y. 2017-18, a penalty of ₹5,000 is applicable under Section 271F for failure to file the return of income.

- **Section 234F**: For A.Y. 2018-19 and onwards, the penalty for late filing of income tax returns under Section 234F is:
- ₹5,000 if the return is filed before December 31 of the relevant assessment year.
- ₹10,000 if the return is filed after December 31 but before the end of the assessment year.
- If the total income is less than ₹5 lakh, the penalty is reduced to ₹1,000.

### **3. **Steps to File Returns**

- **Gather Documents**: Collect all necessary documents, including financial statements, bank statements, and records of income and expenses.

- **Prepare Returns**: Prepare the returns for the years you missed. Use the appropriate forms for each assessment year.

- **Submit Returns**: File the returns either through the Income Tax Department's e-filing portal or by submitting them manually at the Income Tax Office.

- **Pay Dues**: Pay any taxes due along with interest and penalties.

- **Consult a Professional**: It’s advisable to consult a tax professional or Chartered Accountant to ensure that you comply with all requirements and to help with the preparation and filing of returns.

### **4. **Consequences of Non-Compliance**

- **Additional Scrutiny**: Missing returns might attract additional scrutiny or audits by the Income Tax Department.

- **Legal Action**: Continued non-compliance could lead to legal actions including fines and prosecution.

By addressing the missed returns as soon as possible, you can mitigate the penalties and interest and avoid further legal complications.

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