ITR Filing: If you have made the mistake of not filing your Income Tax Return last year, then this is a crime in the eyes of the Income Tax Department, and you need to correct this mistake in time, otherwise you may have to face very serious consequences…
Add informalnewz.com as a Preferred Source
ITR Filing: It is mandatory for every citizen of the country who legally falls under its purview to file Income Tax Return for the financial year. According to CA Manoj Lamba, if a person’s annual income is more than Rs 3 lakh, or someone has to claim a refund, or has any property abroad, or other conditions for filing income tax return apply, then it is mandatory for him to file income tax return. According to CA Manoj Lamba, if a person forgot to file his income tax return last year, then it is a crime. And therefore this crime or mistake should be rectified as soon as possible. If this is not done, the person may have to face serious consequences.
What will be the method of filing returns this year
CA Manoj Lamba says, if you did not file returns last year, it could be a serious mistake. According to the rules of the Income Tax Department, the last date for filing returns is usually 31 July. After this, the last date for filing updated income tax returns is till 31 December. After this, penalty and interest are applicable on filing returns. For this, updated returns have to be filed. If you do not file updated returns, then you may face problems in filing returns this year. Therefore, it is necessary to file updated returns before filing returns for the financial year 2024-25.
Correct the mistake of last year in this way
If you did not file the return of last year, then now you can file an updated return (ITR-U). Under section 139 (8A) of the Income Tax Act, you can file an updated return for the previous financial year. But for this you will have to pay additional tax and interest. The amount of penalty will depend on how late you filed the return. One year, two years, or more. For example, if you had a tax liability on your taxable income, then you may have to pay additional tax ranging from 25 percent to 50 percent depending on the delay. Not only this, you will also have to pay interest under sections 234A, 234B, and 234C of the Income Tax Act.
Risk of litigation
CA Manoj Lamba advises that if a person has made the mistake of not filing income tax return, then he should correct his mistake. If this is not done, the Income Tax Department can impose a penalty and can also file a case.
Calculation of penalty and interest
The amount of penalty and interest on filing an updated return will depend on the period of delay in filing the return and the amount of tax due. Under section 234F, if you delay filing the return, a penalty of up to Rs 5,000 can be imposed (if the income is less than Rs 5 lakh, the penalty will be Rs 1,000). Apart from this, interest at the rate of 1 per cent per month will also be applicable on the outstanding tax. While filing the updated return, you have to ensure that all the outstanding tax and interest is paid, so that any legal action can be avoided in future.
Advice to rectify the mistake
CA Manoj Lamba has advised all those taxpayers who have missed filing the return to immediately file the updated return. This not only gives an opportunity to rectify your mistake but also avoids penalty or legal action by the Income Tax Department. The Income Tax Department has your income and transaction details (like Form 26AS, AIS), and based on incorrect or non-filed returns, they can issue notices or impose penalties.
What to do?
File updated returns: Compute your previous year’s income details, tax liability and interest and file ITR-U.
Consult a tax consultant: Take the help of a chartered accountant to calculate the penalty and interest accurately.
Discipline in the future: Make it a habit to file returns on time to avoid such a situation in the future.
