New Delhi: With the ITR Filing 2024 deadline just 4 days away, it is important to file one’s income tax return at the earliest. While missing the deadline may result in a Rs 5,000 late fee and even a 1 per cent interest for every month of delay, there’s another reason why you should file ITRs: in some cases, not filing your ITR it may land you in jail.
How missing ITR filing may land you in jail
Ensure that your ITR filing is updated, especially if you have any tax payments outstanding under the Advance Tax payment regime. This is more important for income from capital gains arising out of stock market investments, dividend income and even non-equity financial instruments. However, it is important to ensure that you file an ITR despite the advance assessment. Here are the conditions under which you may land in jail in relation to ITR filing:
Concealment of income
Failure to file ITR
Failing to file taxes
Making false statements in ITR
A female taxpayer in Delhi was recently handed six months in jail for failing to file her ITR, the ET reported. Taxpayers whose liability exceeds Rs 25,000 stands may be handed a minimum of 6 months in prison going up to 7 years along with a fine. Meanwhile, those whose liability is below Rs 25,000 may receive a minimum 3 months in prison sentence of up to 2 years with a fine.
If you miss the July 31, 2024, ITR filing deadline, you may be imprisoned under Section 276CC of the Income Tax Act, if taxes were paid but the ITR was not filed. To be sure, this may only happen in extreme cases where the I-T department detects instances of tax evasion.
What happens if you fail to file ITR by July 31?
If you fail to file ITR by July 31, 2024, you will have to pay a penalty of Rs 5,000 along with a 1 per cent per month interest on the tax payable until the date of filing taxes after July 31, 2024. However, the delay may be extended only up to December 31, 2024.
ITR Filing 2024: It is not enough to pay taxes. You must also file your Income Tax return. Failing to do this may land you in jail. Here’s how. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
