What Happen If I Don’t File Income Tax in India | Income Tax Returns | ITR Filing
If you don’t have income liable as per Income Tax Slab then your are not obliged to file the return but if your income which comes under Income Tax Slab then you need to file a Income Tax Return. Non filing of such case will attract penalty , interest and other consequences.
If ITR is not filed or delayed for filing then we will have following impacts:
Late Filing Fee | Interest | Penalty
From financial year 17-18 onwards the penalty will be charged of Rs.5000 if you file returns after due date and before Dec 31st.
If you file after that it will attract penalty of Rs.10000. In case if your income is up to INR 5 Lakhs then the penalty will be INR 1000.
Interest in delay of filing ITR under section 234A of Income Tax Act.
Advantages of Filing Income Tax on time:
The income tax department have complete details or collects information of various activities of financial transactions like purchases of Gold, Mutual Funds, Car or two wheelers, Usage of Credit cards, Cash deposits in bank accounts and even buying and selling of properties.
Nowadays filing income tax is pretty easy and convenient and online. There are various benefits if you file the return on time.
For loan purposes:
Income Tax Returns Filing help individuals when they apply for loans like housing loan, personal loan, car loan and even credit cards. Financial institutions will ask for copy of Income Tax Returns or ITR’s and based on the ITR's they will calculate the Loan Eligibility.
Insurance :
The Life Insurance companies will check the Income Tax Returns or ITR's these days for Term Policies which are more that INR 50 Lakhs or more. The income filed in Income Tax Returns or ITR's is also one of the factor that decides the approval or issue of the High value Term Insurance policy by Insurance Companies.
Government Tenders:
Any individual or company who is applying for the government tender need to show their Income Tax Return receipts for minimum two to five years. Based on the Income Tax Returns or ITR’s the financial status of the applicant will be evaluated to meet the obligation of the tender. But the rules may vary based on the government policies.
Claims on Tax refunds:
To claim the due from Income Tax Department one should file Income Tax Returns to claim the refund otherwise you have to forgo the Income Tax Refund. If you have TDS deducted on purchases or investments like deposits then you need to file Income Tax Returns with Income Tax Department to claim the TDS Refund if it not crossed the threshold limit.
Carryforward:
If you are not filed Income Tax Returns with Income Tax Department then you will not be able to carry forward your short term and long term capital losses. A long term capital loss one can be able to carry forward up to eight consecutive years if you file the Income Tax Returns on time and properly.
Self employed:
Self employed business persons, consultants, professionals need to maintain ITR's or Income Tax Returns as they don’t get Form 16. The ITR is an important document for them to show their Annual Income, Deductions and Refund details.
If ITR is not filed or delayed for filing then we will have following impacts:
Late Filing Fee | Interest | Penalty
From financial year 17-18 onwards the penalty will be charged of Rs.5000 if you file returns after due date and before Dec 31st.
If you file after that it will attract penalty of Rs.10000. In case if your income is up to INR 5 Lakhs then the penalty will be INR 1000.
Interest in delay of filing ITR under section 234A of Income Tax Act.
Advantages of Filing Income Tax on time:
The income tax department have complete details or collects information of various activities of financial transactions like purchases of Gold, Mutual Funds, Car or two wheelers, Usage of Credit cards, Cash deposits in bank accounts and even buying and selling of properties.
Nowadays filing income tax is pretty easy and convenient and online. There are various benefits if you file the return on time.
For loan purposes:
Income Tax Returns Filing help individuals when they apply for loans like housing loan, personal loan, car loan and even credit cards. Financial institutions will ask for copy of Income Tax Returns or ITR’s and based on the ITR's they will calculate the Loan Eligibility.
Insurance :
The Life Insurance companies will check the Income Tax Returns or ITR's these days for Term Policies which are more that INR 50 Lakhs or more. The income filed in Income Tax Returns or ITR's is also one of the factor that decides the approval or issue of the High value Term Insurance policy by Insurance Companies.
Government Tenders:
Any individual or company who is applying for the government tender need to show their Income Tax Return receipts for minimum two to five years. Based on the Income Tax Returns or ITR’s the financial status of the applicant will be evaluated to meet the obligation of the tender. But the rules may vary based on the government policies.
Claims on Tax refunds:
To claim the due from Income Tax Department one should file Income Tax Returns to claim the refund otherwise you have to forgo the Income Tax Refund. If you have TDS deducted on purchases or investments like deposits then you need to file Income Tax Returns with Income Tax Department to claim the TDS Refund if it not crossed the threshold limit.
Carryforward:
If you are not filed Income Tax Returns with Income Tax Department then you will not be able to carry forward your short term and long term capital losses. A long term capital loss one can be able to carry forward up to eight consecutive years if you file the Income Tax Returns on time and properly.
Self employed:
Self employed business persons, consultants, professionals need to maintain ITR's or Income Tax Returns as they don’t get Form 16. The ITR is an important document for them to show their Annual Income, Deductions and Refund details.
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