If you are in the income tax net, then read this news carefully. According to the Income Tax Act 1961, persons who are liable to tax and do not deposit income tax within the stipulated time frame, can face a jail term of three to seven years. As per the Act, all taxpayers are required to file income tax returns within the stipulated time frame.
According to tax and investment expert Balwant Jain, if a person does not file Income Tax Return (ITI) by the last date, then the Income Tax Department can levy a penalty of 50 to 200 percent on the actual income from them. Along with this, tax and interest will also be charged from such taxpayers till the filing of ITR. According to Balwant, the central government has the right to prosecute those who do not file ITR by the last date despite the tax liability.
Liability of more than 10 thousand only sued
Jain explains that it is not necessary that the Income Tax Department will prosecute you every time you do not file ITR. According to him, the income tax department can prosecute the taxpayer for tax liability of more than Rs 10,000. According to the income tax laws, there is a provision of imprisonment of not less than three years and up to a maximum of seven years in such cases.
File ITR by 31st March 2022
The last date for filing ITR for assessment year 2021-22 is March 31, 2022. Individual taxpayers who have missed to file ITR on 31st December 2021 can file ITR till 31st March 2022. However, ITR can be filed with penalty even after the last date.
