I haven’t filed it because I pay TDS every month. So what happens if we don’t file taxes?
Even if you missed the deadline for filing your Income Tax Return (ITR), you can still file it. If you miss the final deadline of March 31, 2019 too, then you may be asked by the IT department to explain the reason for not filing with requisite proof.
From next year onwards i.e. starting from April 1, 2019, if you file a late ITR and your earning is greater than Rs. 5 lakh, then, you are liable to pay a penalty of Rs. 5,000 if the ITR is filed before Dec 31, 2019, and Rs. 10,000 penalty if the ITR is filed after Dec 31, 2019. For people whose income is less than Rs. 5 lakh, the penalty would be restricted to Rs. 1,000.
Note that it is mandatory to file your ITR if you earn taxable income. Also, if there is any discrepancy in the TDS amount deducted and the amount of tax that you need to pay, the IT department might send out a notice asking for an explanation.
If you couldn’t file the ITR within the deadline and you receive a notice from the IT department, then do not ignore it. Normally, the IT department allows ample time to respond or to file your taxes, so be diligent and get to doing it within the stipulated time-frame.
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