What will be Consequences if I don’t File ITR?

If Assessee being Individual don’t File Income Tax return within due date of section 139(1) as extended from time to time will have to face following consequences:

LATE FEE UNDER SECTION 234F OF Income Tax Act

Gross Total Income is Below BASIC EXEMPTION LIMITNIL
Gross Total Income during Financial Year is Less than Rs.5,00,000Rs.1,000
Gross Total Income during Financial Year is More than Rs.5,00,000Rs.5,000

Interest under section 234A

Interest under section 234A @ 1% per month or part thereof will be charged on unpaid Tax amount if any.

No Carry forward of Losses

If Assessee files belated return then Losses Except Loss from House property will not be allowed to carry forward. Losses such as Loss from business or Profession including speculation loss, Loss under the head Capital gain will not be allowed to carry forward if assessee files Belated return that is return after due date under section 139(1).

Penalty for Non-filing Tax Audit report and relevant return within due date

A penalty is provided under section 271B of Income Tax Act if Tax Audit report and relevant return under section 44AB is not filed within due date as extended from time to time then Following Penalty is payable.

½ percent (one half percent) of Turnover or Gross receipts Or

Rs.1,50,000

Whichever is Lower.