Is it Necessary to file last year AY 2019-20 Returns with penalty?

G Sharath Kumar (56 Points)

19 September 2020  
one of my employee forgot to file last year return. when tried to aling with year return. they have shown 10,000/- as late penalty. He already retired in May 2019. now is it necessary to file the returns with 10k penalty.? What happens if not filed as he already retired in may 2019.?