For each assessment year (AY), the government gives taxpayers four months to consolidate their income tax details for the relevant fiscal year and submit their income tax return (ITR) properly. The window begins on April 1 and concludes on July 31, if not extended.
There are several consequences that taxpayers are liable to face if they fail to close their returns by the due date.
Monetary penalty: Those who fail to file their returns on time can do so even after the due date. For this, however, they will have to pay a maximum penalty of ₹5,000 (for delayed ITRs after July 31, but before December 31), and ₹10,000 (if filed after December 31).
Penal interest: A punitive interest will be charged on the amount, in case of any outstanding tax liability, and as applicable in an individual’s circumstances. However, if no tax is due, no interest will have to be paid even in case of late ITRs.
Prosecution: The violators may be jailed from three months to two years, and in case of tax evasion amount exceeding ₹25 lakh, from six months to seven years.
