Late Filing Fee under Section 234F
If any person or business entity fails to file Income Tax Return (ITR) within the prescribed time, then a penalty of an amount up to Rs 10,000 shall be paid to the Government. If the ITR is filed after the due date but before 31st December, then a penalty of Rs 5000 will be levied. However, if the total income of the person does not exceed 5 lakh rupees, then the maximum penalty levied for delay will be Rs 1000.
Interest on the payment of taxes
Apart from the penalty for late filing, interest shall also be paid by a person or business entity after the due date, under section 234A, 234B and 234C till the date of payment of taxes.
If a person is entitled for a refund from the government for excess taxes paid or TDS, then he/she must file the returns before the due date to receive your refund at the earliest.
No Carry forward of losses
A person shall not be able to carry forward losses incurred in the current financial year for subsequent financial years if he/she does not file the ITR within the due date.
Prosecution for Tax Evasion
If a person willfully evades tax and doesn’t file ITR then the prosecution can be initiated against him and in case of default, imprisonment of a minimum of 3 months up to 7 years together with fine shall be imposed under Sec 276CC.