Arjuna (Fictional Character): Krishna, the Maharashtra Election Commission has cancelled registration of 191 political parties for not filing income tax return and audit report. What will happen and what will be its consequences if a common man does not file income tax return?
Krishna (Fictional Character): Arjuna, you have raised a very important question on a very right time. As 191 political parties have not filed income tax return and audit report as stated in the law, their registration has been cancelled by Maharashtra Election Commission. Following law is compulsory for everybody, be it an individual person, a company or a political party. As the registration of these political parties has been cancelled, in the same way, the person, to whom it is compulsory to file income tax return, audit report and has not done so, will have to face consequences under income tax law and also for other things. It’s good that Political parties are penalized for not filing income tax returns, etc. In a lighter way, earlier followers shout slogan like “Netaji aap aage badho hum thumare saath hai. Now those tax followers will give slogan that “ Netaji, aap Income tax return file karo, to hai hum thumare saath hai.” Further rich political peoples who have not filed income tax returns, can now take benefit of “ Income declaration scheme 2016” to declare undisclosed income, if any.
Arjuna (Fictional Character): Krishna, what will happen as per income tax law if a taxpayer has not filed income tax return or audit report?
Krishna (Fictional Character): Arjuna, if return is not filed within time, then penalty will be levied as per income tax law. Similarly, a taxpayer will not be allowed to carry forward loss, if any. Also, if taxpayers extra TDS is deducted i.e. it exceeds the income tax payable, then he will not be entitled to claim the refund. Now, information is exchanged between all government departments and if the taxpayer incurs a transaction, then he will have to face notices. Similarly, the taxpayer to whom filing of audit report is compulsory and he has not filed the report, then he will have to pay penalty equal to 0.50% of turnover or 1.5 lakh, whichever is less.Online GST Certification Course by TaxGuru & MSME- Click here to Join
Arjuna (Fictional Character): Krishna, what can happen, other than what happens under income tax law, if a person fails to file income tax return?
Krishna (Fictional Character): Arjuna, if income tax return is not filed, then:
Many other consequences’ may arise due to non-filing of returns.
Arjuna (Fictional Character): Krishna, what is the due date for filing of income tax return?
Krishna (Fictional Character): Arjuna, the taxpayers to whom the provisions of tax audit is applicable and the companies are required to file income tax return before 30th September. Other taxpayers are required to file income tax return before 31st July.
Arjuna (Fictional Character): Krishna, what will happen if income tax return is filed late or some mistake is committed in it?
Krishna (Fictional Character): Arjuna, interest will have to be paid if income tax return is filed late. Also, penalty may be levied. He will not be allowed to carry forward loss under income tax law. If some mistake is committed in return filed, he may correct it by filing revised return.
Arjuna (Fictional Character): Krishna, what should people learn from all this?
Krishna (Fictional Character): Arjuna, the government gets proper information of tax paid if income tax return is filed on time. If taxable income exceeds Rs. 2.5 lakhs and income tax return is not filed, then it will be very risky. The situation is similar to if a person has good values but he does not apply it in his life. There is no use of having good thoughts or believes if the deeds done are wrong. People should think how to earn money by choosing the right path and following the law instead of watching how other people are earning money. Filing of income tax return is like a good habit, if it becomes a habit then it is very fruitful and if not then difficulties will have to be faced. That is why one should get relieved after he gets his income tax return filed! Land of law should be followed, whether it’s a political party or its leader or its follower, no one should takes laws in his hand.