By Admin 
Income Tax Rules: Often people feel that if they do not have any tax liability then it is not necessary for them to file Income Tax Return (ITR). In such a situation, if you also think the same then it can become a source of trouble for you. Not filing ITR on time not only results in penalty, but you may have to face many financial problems in the future.
Income Tax Return (ITR) is a document which helps in many important tasks by preparing an official record of your income. Whether your income is from business, job or any other means, filing returns on time strengthens your financial position.
Why is it important to submit ITR on time?
If you do not file Income Tax Return (ITR) within the prescribed limit, you may face financial loss. According to the mentioned rules, if you file ITR late, you may have to pay a late fee of up to Rs 5,000. Apart from this, for those whose total income is less than Rs 5 lakh, then this fine is reduced to Rs 1,000.
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Apart from this, if you have any outstanding tax, you may also have to pay interest on it. Under Section 234A of the Income Tax Act, interest up to 1% will have to be paid every month and late fee under Section 234F. This may increase not only the interest on your outstanding tax amount but also the total tax liability.
What will happen if ITR is not filed?
ITR is not just a means of paying tax, but it is also a proof of your financial identity. Many times ITR is required for bank transactions i.e. taking home loan, credit facility, visa for going abroad or submitting documents for studies.
In such a situation, it is very important to keep regular ITR records with you, because without it you will have difficulty in proving your income. If you do not file Income Tax Return (ITR), you may have to face a notice or investigation from the Income Tax Department.
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