Not Verifying Income Tax Returns may lead to Penalty, Tax Notice

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Not Verifying Income Tax Returns may lead to Penalty, Tax Notice

Filing of Income Tax Returns is one of the most significant financial tasks in the financial year. The Income Tax Department has recognized that an enormous number of ITRs frequently remain pending for processing because they are not verified by the citizens. September 30 was the last date for pending Income Tax Returns (ITR) for the past several assessment years.

If you have failed to do as such in spite of an expansion, you could be in genuine difficulty. Regularly, citizens should finish the ITR verification within 120 days of having filed the return online. On the off chance that the ITR isn’t verified within the specified time span of 120 days, ITR is considered to be not filed and the assessee may confront prosecution, a punishment under different sections of the Income Tax Act for non-filing of return of the income. Be that as it may, this year assessees were given time till September 30 to verify their previous years’ returns.

Consequences of not filing ITR

The taxpayers who failed to verify their returns may have committed an enormous error. On the off chance that a taxpayer has missed the deadline, there will be serious consequences since the ITR will be treated as invalid and the results of non-filing of return will follow. Your tax refund could get hindered. Moreover, a penalty could be imposed for not filing ITR. The misfortune proclaimed in the ITRs won’t get conveyed forward. Additionally, the I-T department could even issue a tax notice.

What to do if you missed the deadline?

For the relief of citizens, recourse is accessible under Section 119(2)(b) of the Income Tax Act. According to the provisions, you are permitted to concede an application or claim an exemption, refund, deduction, or some other help after the expiry of the period, if you can demonstrate that a veritable difficulty prevented you from verifying the return. The taxpayer can file for condonation of delay. In any case, you should remember that no condonation application for claim of tax refund or loss will be entertained beyond six years from the end of the assessment year for which the application or claim is being made by the assessee.

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