It is well known quote as ‘Precaution is always better than cure’!! As we all aware that Assessment year AY 2020-21 has been started and soon the due date of return filing will occur. Hence now we all need to gear up and start compiling all the relevant documentation for return filing. Currently we all are facing this locked down due to COVID-19 outbreak so let’s utilise this time wisely so that we can comply with our return filing due date within prescribe time.
Many times we take this return filing due date very lightly and hence might missed out on the same. Hence today I am writing this article covering what all are the consequences which assessee might face if he has not filed his return in time. The consequences are as under:
1. He may have to pay Interest U/s. 234A of the Income Tax Act, 1961 on taxes outstanding.
2. Losses if any may not be allowed to be carried forward under the provisions of section 80 Read with section 139(3) of the Income tax Act,1961.
3. Some of the deduction i.e. Under Section 10A, which requires Assessee to file his return on or before the due date specified under sub section (1) of section 139 may not be allowed to Assessee.
4. Assessee may not be able to revise his Return of Income.
5. You may lose interest on refund under section 244A as delay in filing is attributable to you for the period by which you have filed late return.
6. If a person fails to furnish return before due date, the assessing officer may levy a penalty under section 271F as follows:
|Date of Filing||Fees Leviable|
|If the return is furnished after the due date of filing but on or before the 31st day of December.||Five thousand rupees|
|In any other case||Ten thousand rupees|
|Note: If the total income of the person does not exceed five lakh rupees, the fee payable under this section shall not exceed one thousand rupees.|
7. The Assessing Officer is under an obligation to make an assessment to the best of his judgment in the following cases: –
Thus, Non-Filing of the Income Tax Return may result in the Best Judgement Assessment. This is an assessment carried out as per the best judgment of the Assessing Officer on the basis of all relevant material he has gathered.
Therefore, just keep in mind the above consequences of non filing of your Income Tax Return and start working on it.
Republished with Amendments