Penalties for not Filing Tax Returns

Last updated on Jun 7, 2022

If you do not file your income tax returns or you delay it, then ​you will face a penalty by the Income Tax Department. Return of income which has not been submitted on or before the due date specified is called belated return.

If you don’t submit a required return of income within the prescribed time limit, you will have to pay interest on tax due.(( Section 139, Income Tax Act, 1961)) Any person who has not filed their tax returns within the time period, can submit return for any previous year at any time before (whichever is earlier):

  •  The end of the relevant assessment year or
  • Completion of the assessment

Penalty Fee or Amount

You can find a detailed list of penalties and punishments for income tax related offences here. Some of the offences are:

Delay in Filing Returns

The fee you will have to pay for a default in submitting return of income is:

  • Rs. 5000 if return is submitted on or before 31st December of the assessment year.
  • Rs. 10,000 in any other case. However, late filing fee shall not exceed Rs. 1000 if the total income of the taxpayer does not exceed Rs. 5 lakh.(( Section 234F, Income Tax Act, 1961))

Non-Payment of Tax / Not filing Tax Returns

If you do not pay taxes or file your income tax returns then you will have to pay interests, penalty and even face prosecution (go to Court). The prosecution can lead to rigorous imprisonment from 3 months to 2 years. In situations where  the tax sought to be evaded exceeds Rs. 25,00,000 the punishment could be 6 months to 7 years.​​(( Section 276CC, Income Tax Act, 1961))

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

As you found this post useful...

Follow us on social media!

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

Leave a Reply

Your email address will not be published. Required fields are marked *

Have a question you want to ask our legal experts?

Related Resources

What is Income Tax?

Income tax is a tax levied by the Government of India on the income of every person. The Income Tax Act, 1961 deals with it.

Income Tax Returns or Forms (ITR)

An Income Tax Return (ITR) is a form through which the details of income earned and taxes paid are communicated to the Income Tax Department.

Calculating Taxable Income

For calculating income tax, Income Tax Department taxes you based on your income from different categories.

Deductions Reduced from Tax

A deduction is an expense that is subtracted from an individual’s gross total income to reduce the amount which is going to be taxed.

Time Limit for filing Tax Returns

This post talks about time limit for filing income tax returns and where exceptions are allowed by tax authorities.

Income exempt from Income Tax

Exemptions are those incomes which are exempt from tax, i.e. do not form a part of the total income calculated for taxation purposes.