Income tax return filing is one of the most important compliances that each taxpayer must adhere to. Filing your income tax return within the deadline is always advisable as it can help avoid penalties, fines or prosecution involved in late filing. Depending upon the type or category of taxpayers, penalty for late filing ITR may vary from one entity to others. Go through the further post to gain insight into ITR filing charges and penalty for late filing ITR in India.
What is the category-wise penalty for late or non-filing of Income tax returns?
Salaried Individuals
Self-Employed Individuals
Companies
Senior Citizens
Aged over 80 years with total annual income more than Rs. 5 lakhs.
Penalty under Section 271H
Is late penalty levied on people below taxable limit for late ITR filing?
- People who have made expenditure towards electricity consumption over Rs. 1 Lakh.
- People who have a total deposit of more than 1 crore in one or more current accounts with a bank.
- Those who are Indian residents but are making income from foreign assets.
Can one be imprisoned for not filing a tax return?
- For possible tax evasion exceeding Rs. 25 lakhs: Penalty for not filing ITR plus imprisonment of at least 6 months, which can extend to 7 years.
- For other cases: Prescribed penalty with imprisonment of at least 3 months which can be extended to up to 2 years.
ITR registration & filing is among necessary returns for an individual as well as corporations. The key element to keep in mind is that always file your income tax return within the due date of the year as it will not only help ensure compliance to ITR filing but also sets you free from charges and penalty for late filing ITR or non-filing of ITR.
Gain knowledge about the penalties and charges for late filing of income tax return that one may have to bear in different conditions, with the above piece of writing!