Why Not Filing ITR Can Be Costly For You
If you are thinking of not filing ITR (Income Tax Return) then better think again! Such kind of decisions can create lot of troubles for you in the long-run. And in case you own house, car etc then you could be under scrutiny of the Income Tax Department. As per the latest updates, IT Department is compiling a list of all those individuals who are leading luxurious lives & still not filing ITR.
Individuals not filing ITR will receive notices from the department asking their sources of income & reasons for non filing. Also various penalties, late filing fees, interest & even imprisonment can be imposed on such people.
To increase awareness among-st people like you & me, we bring some special circumstances where not filing ITR will get you into trouble.
Have you purchased or sold a house recently?
If you have purchased/ sold house & have not filed (ITR) then be prepared to receive income tax notice. The registrar of property is required to provide details of all purchase/ sale of homes if the value exceeds ₹30 Lac.
Therefore, if you have undertaken any such transaction during the year then not filing ITR can bring a tax notice. The department will ask you the source of income using which the transaction was undertaken. And also the reasons of not filing ITR (Income Tax Return).
Do you own a car?
Every year the income tax department compiles a list of numbers of cars sold, who purchased & have all filed ITR?. Therefore, if you have purchased a car this year & not filed income tax return then notice can be sent to you.
Have you purchased share/ mutual fund of more than ₹10 Lacs?
You may love investing & playing in share markets but it is advisable to tread with caution. If during FY 2017-18 you have purchased shares/ MFs of more than ₹10 Lacs. Then the department has all details about this transaction.
Hence, if you haven’t filed your ITR then a notice will be sent asking the source of income for purchasing shares/MFs.
Do you own land?
Wealth tax may no longer exists but that doesn’t mean one can easily hide his/ her wealth. If you own a land & not filing ITR then you can come under the scrutiny of department.
These are some most popular reasons why not filing ITR can get you in trouble. As people are unaware of the ways the income tax department operate therefore fall prey to scrutinies.
Now, as we Indians are famous for weighing the pros & cons of everything. We give you 3 reason, why you should file ITR on time.
Reason 1: Late Fee u/s 234F
From FY 2017-18, new Sec 234F is becoming applicable. As per this section late filing fee up to ₹10,000 will be levied if ITR is filed post 31st July. Refer our guide for detailed discussion.
Reason 2: Penalty u/s 270A
Sec 270A of the Income Tax Act provides for penalty on under-reporting & mis-reporting of income. The penalty varies from 50% to 200% of the income tax payable. Visit our blog to know more.
Reason 3: Your Past Records Can Come Under Scrutiny
If your income tax return is taken up for scrutiny because of not filing ITR. Then chances are that your previous year ITRs can be taken up for scrutiny. This can make you liable to pay tax as well interest & penalties on any income belonging to the previous year which was not reported.
Looking at the various policies introduced by the government. It can be easily concluded that very strict steps are taken against non-compliance of income tax laws.
Hence, we highly recommend you to please do not make a mistake of not filing ITR. As we told above, such decisions will bring lot of troubles for you.
If you need any kind of expert assistance for filing ITR, get in touch with our eCAs. The industry’s best tax experts are hired to serve you 24×7.
Happy Filing 🙂