ITR Filing: This Violation of Income Tax Return can land you in jail. details here

Speaking on the last date of income tax return; Balwant Jain, a Mumbai-based tax and investment expert said, “Failure to file ITR by the last date, the income tax department can levy a penalty of 50 per cent to 200 per cent on the actual income tax expenditure of the taxpayer, apart from tax and interest. Liability till the taxpayer does not file his ITR in response to the Income Tax notice from the department, “The Government of India (GoI) has the power to prosecute the taxpayer, who despite having failed to file ITR by the last date Is. income tax liability.”

Explaining the rules of prosecution in the Income Tax Rules, Balwant Jain further said, “The existing Income Tax Rules provide for minimum 3 years imprisonment and maximum 7 years imprisonment. It is not that the department can initiate prosecution. In each instance of failure to file ITR, the income department can prosecute you only if the amount of tax evaded is sought 10,000.”

Speaking on the late fee involved while filing ITR after the due date but before the last date; Pankaj Mathpal, MD & CEO, Optima Money Managers said, “If a taxpayer has missed to file ITR by the due date of 31st December 2021, he can still file his income tax return till the last date of ITR of 31st March 2022. but the taxpayer has to pay 5,000 late fee at the time of ITR filing if its taxable annual income exceeds 5 lakhs. In case, the taxable income of any . is less than 5 lakh, in that case the late fee will be reduced 1,000.” He advised taxpayers to file ITR by the last date and avoid 50 to 200 per cent penalty on actual income tax payment or prosecution for 3 to 7 years.