Skip to main content

Not Filing IT Returns May Land You In Prison

As citizens of India, our responsibility towards the country does not end with paying taxes. We have to file income tax returns (ITR) every year for which the government allows us four months from April 1 to July 31. To crackdown on stragglers, the government has introduced penalties on late and failure to file ITR. Let's discuss in details.

Penalties: Sec. 276CC

Wilful failure to furnish ITR during the prescribed time resulting in tax evasion exceeding Rs 1 lakh attracts a fine and imprisonment that can be from 6 months to 7 years. In other cases, it could be a fine and imprisonment of 3 months to 3 years.

However, a penalty cannot be levied unless there is substantial evidence of wilful failure. As the provisions of the Income Tax Act are amended frequently, it is impossible even for tax experts to know all the provisions at any given point of time. Hence, ignorance of law is often cited as an excuse to escape the penalty.


From April 1, 2018, the government introduced a fine of Rs 10,000 for those who fail to file the ITR by July 31. If you file ITR after the due date but before December 31, the penalty will be Rs 5,000. Small taxpayers with income not more than Rs 5 lakh per annum will not be penalised more than Rs 1,000.


Scrutiny Assessment

As a relief to senior citizens, the department has decided not to scrutinise any returns filed by those above the age of 60 years and those whose gross total income is less than Rs 10 lakh.


Annual Information Report

Various authorities (not individuals) are required to send annual information report to the department of all persons, including NRIs, undertaking any one of the following transactions:

  1. Banks — (a) Cash payment of Rs 10 lakh for purchase of DDs / POs, RBI Bonds, etc. (b) Cash deposit / withdrawal of Rs 50 lakh from current account. (c) Cash deposit of Rs 10 lakh in any one or more accounts, other than current account and time deposits. (d) Time deposits, (other than those through renewal of another time deposit) of Rs 10 lakh (e) Payment in cash of Rs 1 lakh or Rs 10 lakh by any other mode, against credit card.
  2. Company — Receipt of Rs 10 lakh for acquiring bonds, debentures or shares, including share application money.
  3. Listed Company — Buyback of shares of Rs 10 lakh.
  4. MFs — Receipt of Rs 10 lakh for acquiring units.
  5. Forex dealer — Receipt of Rs 10 lakh for sale of forex, including against forex card or expenditure in such currency against debit/credit card or issue of traveller cheque or draft.
  6. IG registration or registrar/sub-registrar of property — Purchase or sale of immovable property for Rs  30 lakh or as valued by the stamp valuation authority, whichever is higher.
  7. Any person liable to audit u/s 44AB — Receipt of cash payment of Rs 2 lakh by any person for sale of goods and services, other than those specified above.

The aggregation rule is applicable for all transactions except for purchase or sale of immovable property and cash payment for GST.


Take care to remain out of being a reportable person, as much as you can.


Taxpayers can view their consolidated annual tax credits in Form 26AS enabling them to resolve any discrepancies arising due to incorrect quoted PAN, non-filing of TDS returns, non-deposit, lower deposit of TDS by the deductor, etc.

Refunds are made directly to the taxpayers' bank accounts, with intimation through SMS or e-mail.


Tax and PAN related grievances can be redressed online through e-Nirvan, a paperless facility launched by CBDT. Alternatively, one can visit the Aaykar Seva Kendra. However, suggestions or matters related to the Court, RTI, religion, services of government employees or foreign governments cannot be redressed through this mechanism. 


Filing income tax returns is not just an act of responsibility, but it also helps in getting loans, credit cards and gaining benefits of adjustments against losses. Hence, file income tax returns on time




SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating enormous Wealth, If you have patience and long term Investing orientation. Invest in Best SIP Mutual Funds and get good returns over a period of time. Know which are the Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds

For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

Popular posts from this blog

Debt Mutual Fund Dividends are Taxable

DDT is deducted when a non-equity fund declares dividends. Equity and balanced fund dividends are tax-free The AMC is correct to deduct the dividend distribution tax (DDT) as it is mandated by tax laws. DDT in mutual funds is deducted every time a non-equity fund declares dividends. Equity fund and balanced fund dividends are tax-free . It is possible that you have invested in a non-equity fund for the first time or have received the dividend under a non-equity fund for the first time. That is why this is the first occasion when you have come across DDT.   The rate at which non-equity schemes deduct DDT has also gone up after the July 2014 budget. This is due to a change in calculation methodology. Earlier, if the fund has to declare a dividend of R 100, it used to make a provision for R 128.3, paying R 28.3 to the taxman and distributing the balance to the investor. This allowed the investor to bear less tax since the effective tax rate was 22.07 per ce...
Read more

Franklin India High Growth Companies Fund

Franklin India High Growth Companies Fund Online One of the key developments that the Street is keenly waiting for is a cut in interest rates by Reserve Bank of India . With demand rising gradually, a rate cut is expected to boost earnings growth for companies. In such a situation, schemes which invest in high growth companies are best suited, especially when seen from a long-term perspective. One such scheme is Franklin India High Growth Companies Fund. Fund managers Anand Radhakrishnan, Roshi Jain and Srikesh Nair strictly follow valuation parameters when it comes to choosing stocks.Valuation parameters, such as enterprise value, price-to-earnings growth ratio, forward price-to-sales ratio and discounted earnings per share, play a critical role in selecting companies for investments. Taking into account these parameters, the fund managers invest in companies which are poised for high growth in their respective sectors. This approach has been in favour of the scheme and it has perform...
Read more

Atal Pension Yojana contribution Tax Benefit for spouse

Contributions to Atal Pension Yojana (APY) are eligible for the same tax benefits as the NPS. This means that the contributions can be claimed under Section 80CCD (1B). The current limit for Section 80CCD (1B) is   Rs   50,000, over and above the   Rs   1.5 lakh limit under Section 80C. Section 80 CCD (1) is a different one, meant to cover employers' contribution towards NPS . You cannot get tax benefit by investing in the name of your spouse under Section 80 CCD . ------------------------------ ----------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in India for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. IDFC Tax Advantage (ELSS) Fund 8. Birla Sun Life Tax Relief 96 9. ...
Read more

Avoid NFOs

  Don't get taken in by the flurry of new fund offers. You will be better off sticking to the tried and tested schemes.   For the past one year, to cash in on the bull run in equities, mutual fund houses have gone on a new fund offer (NFO) overdrive. But experts are unanimous in their advice: avoid NFOs . While past performance is not an indicator of how a fund will fare in the future, it does tell the investor how skilful the fund manager is. This crucial information is missing in an NFO. Not only is there no track record to judge an NFO by, many NFOs are similar to funds that already exist. If the new fund is similar to existing funds, you are better off investing in the latter. Around 67% of the new launches in 2014 were closed-end products. Investing in the NFO of a closed-end fund is doubly risky. In case the fund's performance is lacklustre, a closed-end fund does not allow you to exit. Even though closed-end funds are listed on the stock...
Read more

Mutual Fund Exit Load Changes

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Mutual Fund Exit Load Changes AMCs don't communicate about any change in exit load directly with investors, but do update on their website   The exit load applicable to your investments is the load which existed at the time when you invested in the particular fund. Any subsequent changes in the exit load will not be applicable to your investments.   However, Asset Management Companies ( AMCs ) periodically publish addendums in the newspapers, which state any change in exit loads of specific schemes managed by them. Such changes are also posted on their websites. However, a direct communication to an investor is not made, considering the costs involved in doing so. In their own interests, investors should not only track the performance of the funds they i...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now