Not posting TAX returns before 31st July ?? THEN...GOD BLESS YOU !!!

If you have ever had such a thought, dismiss it immediately. The disadvantages are significantly huge and the advantages, if any .... ABSOLUTELY ZERO !!!

Filing returns is mandatory for individuals and Hindu Undivided Families (HUFs) with earnings exceeding Rs. 2,50,000.

Once it crosses Rs.2.5 lakhs...then you are supposed to file ITR even if you do not have taxable income (after deductions)

YOU ARE STRONGLY SUGGESTED TO CONTACT YOUR CHARTERED ACCOUNT FOR MORE DETAILS 

If your income does not exceed the tax limit...you have nothing to fear...RELAX
But, if it does cross the Limit...then you better file the returns or you better be prepared to face the Music

 

WHAT IF I AM NOT ABLE TO FILE THE RETURNS?

Not filing an Income Tax Return before 31st July will be held as TAX EVASION and you could get a notice from the Income Tax Department

PENALTY : 

if you cannot pay by then...then thankfully, under Section 234f, you can file by paying a LATE FEE of Rs.1000 before 31st December, if your income is below Rs.5 lakhs

If the income is above 5 lakhs (even 5 lakhs Rs.1) then you will have to pay a penalty of Rs.5000. You will also be liable to pay penal interest (Section 234A) at 1% per month!

Besides the above,  

IF YOU FAIL TO FILE BEFORE 31ST JULY, THE BENEFIT OF CARRY FORWARDING OF ANY LOSSES WILL NOT BE ALLOWED

WANT SOME MORE REASONS TO FILE TAXES ON TIME? 

Well... here goes

You may also be levied a Penalty for CONCEALMENT OF INCOME (IT Department will obviously think you have deliberately concealed the income and not filed the returns)

OH MY GOD! ANY OTHER IMPLICATIONS?

Yes. Definitely.

1.               You will not be allowed to carry forward losses you may have incurred in your business or investments. (Normally this is allowed for up to 8 years and can be set off against Profits). This could affect your Financial situation) However, Loss from House Property is still allowed to be carried forward

2.               You are disallowed to claim a refund of any Excess Taxes you may have paid.
Sometimes due to some error, oversight, or omission, you may have paid Excess Taxes, or a wrongful TDS may have occurred. In normal Tax Filing, you are entitled to claim a refund and get back your rightful amount but this is disallowed in the case of Belated Return Filing!

3.               You may not get Life Insurance Cover.

Normally Life Insurance Companies require you to submit your IT returns while you are taking a Life Insurance Policy and they may well reject your policy in case of non-submission of IT Returns

 

4.               Even your Credit Card company may reduce your Credit Limit and may even cancel your Card

5.               Your Credit Standing will get hugely affected and you may face problems while applying for loans....personal loans...home loans...whatever!

Easy loan processing: At the time of applying for a loan, banks ask applicants to furnish copies of tax returns for the past 2-3 years. This helps banks understand your financial position and ability to repay the loan. Providing a copy of returns helps in faster approval.

4.               Some countries may even deny you a VISA if you are not able to submit your IT Returns.

 

FINALLY, in the worst-case scenario (your bad luck) 

 under sec 276cc you may notice for prosecution and get JAILED with a Rigorous Imprisonment of upto 7 years!!!!!!!!!

ANY OTHER ADVANTAGE OF FILING RETURNS??

YES.

A person should file IT returns irrespective of whether the income is within the exemption limit. Don’t we need to produce IT return statements when we apply for loans? Exemption is a privilege and we shouldn’t use it as an excuse for not filing returns.

LAST MINUTE TIP :

And, despite your best efforts you still could not file your returns....then note there is still time on December 31st, 2023 to file a

BELATED RETURN is permitted

Finally, you are advised to take the advice of a good qualified Chartered Accountant for all Tax Related Matters.

Best of luck,

Srikanth Matrubai

All the best,
Regards,
Srikanth Matrubai

MUTUAL FUND DISTRIBUTOR

REBALANCE VOLATILITY CERTIFIED COACH

Srikanth Matrubai, Author of the Amazon Best Seller DON'T RETIRE RICH

You are strongly encouraged to consult your financial planner before making any decision regarding this investment. The views expressed here are the author's personal views and should not be interpreted as a recommendation to invest/avoid.

 

Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

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