Income tax Tips: Do not make this mistake even by mistake while filing income tax..

Filing of income tax returns is very important in the country. If your salary also comes in the income tax slab, then it becomes very important for you to file an income tax return. On the other hand, if a person does not file ITR despite his income being taxable, then he may have to face a lot of problems.

Late Fee for Late Filing
If ITR is not filed on time, there can be a late filing fee of Rs 5000 under section 234F. However, if your total income is less than Rs 5 lakh, the late fee is limited to Rs 1,000. On the other hand, if your income is not taxable, then you will not be charged any penalty for late filing of income tax returns.

Interest on tax amount
Apart from the penalty, you will be charged 1% interest per month or part of a month (as per section 234A) on the outstanding tax amount. This interest will be calculated from the due date of filing of your return for the relevant financial year till the date of filing of your return by you.

loss on benefits
If you have incurred losses in the stock market, mutual funds, real estate or any of your business, you can carry them forward and make a difference in the next year's revenue. This greatly reduces your tax liability. However, if the return is not filed by the due date and the loss is not declared in your ITR, you cannot use these losses as an offset against future profits. However, losses can be carried forward if they relate to a house property.

Unable to modify ITR
If the original return is filed within the due date, the taxpayer can file a revised ITR any number of times. However, if the initial ITR is filed late, the benefit of revising the ITR is not available. Consequently, while submitting a belated ITR, the taxpayer should exercise utmost care and ensure that the ITR is accurate in all respects as errors in a belated ITR cannot be rectified.

Punishment
One of the major consequences of not filing an ITR on time is that the Income Tax authorities will probably assume that a person's motivation was tax evasion. Consequently, they have the power to levy a penalty under 270A for under-reporting income, which is equal to 50% of the tax evaded by the taxpayer due to non-filing of returns. They can also be punished with rigorous imprisonment from three months to two years and a fine depending on the amount of tax evaded.
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