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What Happens If I Don’t File Income Tax Return?

Have you ever thought- What happens if I don’t file an Income Tax Return? If yes, then this blog is your answer to this question. If you don’t file your ITR, you will have to face its consequences. Online ITR filing helps the government know about your income, investments, and payable taxes. Income Tax Return filing is legally important and also it is the key to your better financial future. 

Let’s have a quick glimpse at what actually an Income Tax Return is-

Income Tax Return is a form that has been used by the public for the declaration of their income including the information about the financial transactions of the taxpayers. In other words, we can say that ITR is a self-declaration made by taxpayers about their earnings, assets, taxes they pay, and the refund to be claimed.

Who is Eligible to File Income Tax Return?

Although online ITR Filing is mandatory for all, the Income Tax department has set the eligibility criteria. Taxpayers have to decide whether they need to file ITR or not. The eligibility criteria for the taxpayers to file ITR online are as given below-

  • If your total income is more than the basic exemption limits of either 2.5 Lakhs, 3 Lakhs, or 5 Lakhs, depending on the taxable limit applicable to you, filing taxes online is a must.
  • If you pay the electricity bills of more than Rs. 1 lakh, then you must have to file the ITR.
  • If you have deposited an amount of over one crore in your current bank accounts in a financial year, then tax filing is a must for you.
  • If an amount of more than Rs. 2 Lakhs has been spent by you for traveling internationally to a foreign country in a financial year, then you are required to file the ITR.
  • If you have assets in foreign countries or, have a source of income from outside the country, or have signing authority for any account outside the country, then you must have to file an ITR.

Last Date to File Income Tax Return

The ITR Filing last date for the FY 2023-24 will be 31st July 2024. However, for the taxpayers who have been required to conduct an income tax audit and have business income, the Income Tax Return last date will be 31st October 2024.

Why is it Important to File Income Tax Return?

ITR Filing online is very important for the taxpayers. ITR filing is not just important but also it is your social responsibility. Here, we will discuss about its importance. You can also seek the assistance from ITR Filing consultants to understand it properly-

  • Claiming Tax Refunds

If you have paid more tax than your actual liability, then you will be eligible for a tax refund, and you can claim it by filing Income Tax Return.

  • Avoiding Audit

When you file your income tax return accurately and on time, it will reduce the possibilities of being audited by tax authorities.

  • Loan Approval & Financial Transactions

If you apply for loans, then the banks & financial institutions usually ask for documents related to ITR for smooth financial interactions. So, for loan approval, ITR Filing online is important.

  • Compliance with the Law

As per the tax laws, it is mandatory to file ITR. If you fail to file the ITR, then it can result in penalties, fines, and legal consequences.

  • Financial Responsibility

If you file the Income Tax Return, then it will work as the documented proof of your financial stability & responsibility.

What Happens if You Don’t File Income Tax Return?

If you thought that nothing would happen if you did not file your income tax return, then let’s have a look at the information below. Here in this section of the blog, you will get to know about the consequences of non-filing of Income Tax Return. 

Financial Penalties if You Fail to File Income Tax Return 

  • Penalty Charges u/s 234F as Late Filing fees.

One of the major consequences of non-filing ITR is that a penalty will be imposed on you. A penalty of Rs. 5000 will be levied on you if you fail to file your ITR on time. However this penalty will be limited to Rs. 1000 if your annual income is at most Rs 5 Lakhs.

  • Interest on Tax Dues

If you have any unpaid tax liability for the respective financial year, then an interest of 1% will be charged per month until the payment has done. It will increase your tax burden.

Legal Consequences if you don’t file Income Tax Return

  • Scrutiny and Notices

When you fail in ITR Filing online, then Income Tax Department examines your case. They may also issue the notice to you demanding your explanations about non-filing of your ITR. This process will become too much hectic and time consuming.

  • Prosecution and Imprisonment

In extreme cases of not filing ITR deliberately with an intention of evading tax you will get punished. The punishment may be the strict imprisonment of at least 6 months and can be up to 7 years along with a fine.

Benefits You Missed if you don’t file Income Tax Return

  • Carry Forward Losses

If you suffer any losses in your investment or business, then you can use them to adjust against the income of next year. It will reduce your tax liability in the upcoming financial year. If you fail in filing ITR online, you will loss this opportunity.

  • Loan application & Visa

When you don’t file ITR, it will create a hurdle in your loan & Visa application, as most of the lenders and visa authorities will ask about your ITR. Income Tax Return filing works as the proof of your income and compliance.

  • Claiming Refunds

If you paid taxes more than your tax liability, then you can claim refunds. But if you fail to file your ITR, then your refund process will get delayed and may be terminated.

Here are the consequences that you may have to face if you fail to file your Income Tax Return. Failure in filing ITR may results in the legal consequences. You must have to file ITR on time so that you can maintain the compliance with the Income Tax Laws in India. If you still have any confusion you can seek the expert guidance and simply search “CA near me for ITR Filing” on Google. You will get the professional services at your fingertips.

Why Legal Pillers is best to File Income Tax Return?

Among the numerous options, Legal Pillers is the premier choice to file ITR online. We have a dedicated team of professionals with expertise in ITR filing online. Here, you will get to know why Legal Pillers is best-

  • Expertise and Experience

Legal Pillers has a team of expert professionals with exceptional expertise in tax laws and regulations. We will make sure about accuracy and compliance with all regulations so that your ITR filing journey will become smooth & hassle-free. 

  • Accuracy and Compliance 

With LegalPillers, you can trust that your tax returns will be accurate and compliant with current tax laws and regulations. The platform provides thorough guidance to make sure that everything is in order.

  • Timely Assistance

Deadlines to file ITR are crucial and Legal Pillers will make sure that you never miss them. You will get the quick & accurate ITR filing online with our flawless process, giving you peace of mind during tax season.

  • Personalized Service

Legal Pillers understands that each taxpayer has unique needs & circumstances. So, we offer personalized services as per your needs. Our team will provide you the customized solutions to meet your needs effectively.

  • Comprehensive support

ITR filing online can be challenging but dedicated team of Legal Pillers offers you the complete support at every step of the way. From gathering necessary documents to answering your questions, we are always there to address your concerns.

  • Trusted Reputation

Legal Pillers has built a reputation for excellence and reliability. We earned the trust of countless clients with our commitment to professionalism and quality service. If you choose Legal Pillers, it means you select the reliability & peace of mind.

Here are the reasons why you should choose Legal Pillers as your trusted partner for ITR filing. 

Final Words

Online ITR filing is very important for individuals as well as businesses. If you fail to file your return on time then you may have to face the severe consequences. Hopefully you have understood the outcomes of not filing your Income Tax Return. But if you still has confusion you can contact to CA near me for ITR filing.

Legal Pillers will help you to understand the importance of ITR filing online. Our dedicated team of experts will explain you about the consequences in detail. You can trust us for an effortless filing of ITR. Choose Legal Pillers as your trusted partner and take a step towards your secured financial future. 

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