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If you pay income tax or are thinking of filling, be careful! The deadline for filing income tax returns (ITR) is approaching, and this time can be overwhelming on a small negligence of yours. The government has made the Income Tax laws more strict, especially for those who do not file ITRs or give incorrect information. According to a report, for this ‘lapse’, you will not only have a late fee of Rs 200, but in many cases Jail air may also have to be eatenAnd tax evasion can also be fined up to 200%!
What is this ‘big mistake’ to avoid?
The most common and serious mistake made by taxpayers – Not filing income tax returns on time or filing ITR with incorrect or incomplete information. If your income is taxable or you fall into a category for which it is mandatory to fill ITR (even if your income is not taxable), ignoring it can cause a lot of trouble for you.
Under Section 139 (1) of the Income Tax Act, 1961, taxpayers have to file their ITR within a fixed period after the end of the financial year. Not doing so can have serious consequences.
What can happen if you made this mistake?
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Late fee: Even though you think it will be fined only ₹ 200, but it is only for the initial stage, and not for all. Under the Income Tax Rules, not filing the returns within the stipulated time may levy a delay fee of up to Rs 10,000 (if the total income is more than Rs 5 lakh). However, it can be ₹ 200 or less for small -income persons.
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Penalty on tax: If you deliberately hide your income or have given wrong information, which has caused tax loss to the government, then the amount of that tax Fines up to 200% May seem. That is, if you have saved a tax of Rs 1 lakh, then you may have to pay a fine of Rs 2 lakh.
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Interest burden: You may also have to pay interest of more than 1% every month under sections 234A, 234B and 234C of the Income Tax Act if you pay late.
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Imprisonment: This is the most serious consequence. If you constantly steal tax, make false claims, or do not file ITR despite sufficient tax liability, then you Jail ranging from at least 3 months to 7 years Can also happen. It falls under Section 276C of the Income Tax Act, which is related to ‘tax evasion and punishment’.
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Further losses will not be forwarded: If you have raised losses in a particular financial year (such as capital loss), you will not be able to adjust that deficit with profits in the next years.
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Other problems: Late ITR filed or giving incorrect information may also have trouble taking loans in future, applying visa or participating in government tender. Banks or foreign embassies often ask for a copy of ITR.
It is also important to choose the right ITR form:
Choosing the wrong ITR form is also considered a major lapse. The Income Tax Department has created several forms on the basis of source of income, nature and financial transactions, such as:
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ITR-1 (spontaneous): For persons with salary, pension or only a house property from property.
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ITR-2: Capital gains with salary, more than one property or foreign income individuals.
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ITR-3: Person with business or profession.
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ITR-4 (Sugam): For small businesses and professionals with estimated income.
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ITR-5, 6, 7: For partnership firms, companies, trusts etc.
Then what should we do?
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File on time: Without waiting for the last date, as soon as the Income Tax Department starts the process of filing returns, file your ITR.
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Give correct information: Fill every information related to your income, expenditure, investment and deduction honestly and correctly. Do not try to hide any information.
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Choose the right ITR form: Select the correct form based on your income and other details.
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Link PAN and Aadhaar: Make sure your PAN card and Aadhaar cards are connected, as it is now mandatory.
Remember, the intention of the government is not to disturb the people, but to bring financial discipline and transparency. Become a responsible citizen and fulfill your tax responsibilities on time to avoid any legal mess.