Income Tax Season: What if you miss ITR deadline of July 31? Will you be fined, jailed or both?
ITR Deadline: The deadline for Income Tax Return (ITR) is July 31. One should file an ITR as soon as possible to save oneself from any penalty from the Income Tax Department. But if the I-T department does not extend the ITR filing deadline and, for some reason, you miss filing your return, then be careful. If you fail to meet the deadline of July 31, you will have to bear the brunt of it. The general impression that we have of not filing the ITR before the deadline is that we have to pay the monetary fine, but do you know that in some cases, you can also be jailed? Know what the rules are for missing the ITR deadline and how you may face jail punishment.
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A look at the penalty provisions
If a person files an ITR return after the last date of filing their income tax return, it is called a belated ITR. According to Section 234F of the Income Tax Act, in this situation, taxpayers have to pay a penalty of Rs 5,000.
ITR will have to be filed even if tax is not levied
Many people think that a penalty is imposed only when you have a tax liability, but it is not so. If your income exceeds the tax exemption limit (Rs 2.50 lakh in the old tax system and Rs 3 lakh in the new one), you will be charged a penalty of Rs 1,000. That is, if you fall under the purview of a rebate under 87A, it is necessary for you to file ITR.
There is also a provision for punishment
Keep in mind that paying tax and filing ITR are two different things. If you fall into the category of taxable income, you must pay your tax every year, but even if you do not fall into that category, you must file ITR. Not paying tax is a crime, and there is also a provision for punishment in case of not filing ITR.
Can be imprisoned for up to 2 years
If a person does not file their ITR despite a notice being sent to them under sections 142(1)(i), 148, or 153A, then legal action is taken against him. Under this, there can be a jail sentence of 3 months to 2 years, and you may also have to pay a fine.
In this case, imprisonment up to 7 years
On the other hand, if your tax liability is more than Rs 25 lakh, you can get into big trouble. In such a case, legal action can be taken against you, and you can be sentenced to jail for up to 7 years.