Tag: ITR PENALTY

4.9 crore ITR filed, but if they miss 15th September then they will have to pay a heavy price

The Importance of Filing Your Income Tax Return (ITR)

With the income tax return (ITR) filing deadline rapidly approaching, it’s crucial for taxpayers—especially those who are required to file non-audit ITRs—to act promptly. This year, the deadline is set for September 15. As of September 7, 2025, nearly 4.9 crore (precisely 4,89,23,231) ITRs have already been filed for the assessment year 2025-26 (AY26), according to data from the Income Tax Department. Among these, around 4.6 crore ITRs have been verified, and over 3.3 crore have been processed by the IT department.

Common Misconceptions About ITR Filing

Many individuals mistakenly believe that filing ITR is not mandatory if they do not have a positive income or have paid all their taxes in advance. This, however, is not true. Filing ITR is not only mandatory but also essential for many financial activities.

Why is ITR Filing Mandatory?

  1. Official Recognition of Tax Paid: Filing ITR is mandatory even if all taxes and interests have been paid and there is no refund due. Your tax payments are officially recognized only after you file and verify your total income and tax liability. The government will accept the tax you paid only after you confirm these details.
  2. Completion of the Process: If you do not file your ITR, the process remains incomplete and can invite penalties. It is mandatory for every individual whose income (before exemptions and deductions) exceeds the maximum exemption limit.
  3. Reporting of Advance taxes: Even if advance taxes have been paid, these taxes need to be reported to complete the self-assessment of income and taxes. This requirement persists even if you have sustained a loss during the financial year.

Penalties for Not Filing ITR

If you miss the deadline to file your ITR, you can submit a belated return. However, a late filing fee applies:

Additionally, non-payment of taxes can lead to interest charges, penalties, and prosecution. If you fail to pay your tax liability, you may face rigorous imprisonment from 3 months to 2 years. If the evaded tax amount exceeds ₹25 lakh, the punishment can range from 6 months to 7 years.

Other Reasons to File ITR

Filing your ITR is beneficial even if it’s not mandatory for you. It serves as proof of income, which is important for:

In summary, it’s imperative to understand the importance of filing your ITR. Not only does it ensure compliance with tax laws, but it provides you with a range of financial benefits and protects you from potential penalties. Make sure to file your ITR ahead of the September 15 deadline to avoid complications and secure your financial standing.

Income Tax Appellate Tribunal Cancels Penalty for Non-Filing of Tax Return by Elderly Woman

Income Tax Appellate Tribunal Sets Aside Penalty on 83-Year-Old Woman for Not Filing Tax Return

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has set aside a penalty imposed on an 83-year old woman for not filing her Income Tax Return.

based super senior citizen, who had never filed an I-T Return as she was a According to a report by TOI, the Gurgaon homemaker and did not have taxable income, was shocked when she received a demand of Rs 5,000 – a penalty imposed under (erstwhile) section 271F of the IT Act for not filing the tax return within due date.

The penalty was levied for the year 2011 12. However, no proper direction was provided on the matter by the commissioner (appeals) regarding this penalty.

She had filed an appeal against this order and submitted that she was not liable to file a return for the financial year in dispute, the Commissioner (Appeals) under the faceless appeal mechanism, did not consider this fact. She then submitted to the ITAT that this order was bad in law on various grounds, the TOI report mentioned.

In her appeal, the octogenarian pointed out that the penalty under section 271F is directory and not mandatory as she had a ‘reasonable cause’ for not filing the IT return. She also termed the order arbitrary, illegal and without jurisdiction.

It is to be noted that the provisions of Section 271F have been substituted with section 234F from April 1, 2018.

In her submission before the ITAT, she said that the Income Tax Officer made an error in framing the assessment order under section 144 read with section 147 of the IT Act and a proper procedure was not followed. Her submission also said that orders passed under this section are ex parte, and the assessment is carried out according to the ‘best judgement’ of the IT office based on the available material, TOI reported.

The two member ITAT bench composed of C M Garg, judicial member and BRR Kumar, accountant member, reviewed the wording of the order issued by the Commissioner (Appeals) and quashed the penalty of Rs 5,000 in their order.