Latest news with #ITR-U
India Today
4 days ago
- Business
- India Today
Not Filed ITR For Years? Know the Legal & Money Risks
Not Filed ITR For Years? Know the Legal & Money Risks 8 Aug, 2025 Credit: Getty Repeatedly skipping your income tax return invites fines, interest, and even prosecution, with possible jail time between three months and seven years. Frequent ITR Defaults Can Lead To Jail Time Missing the deadline attracts penalties—Rs 5,000 for incomes above Rs 5 lakh and Rs 1,000 for lower incomes—plus 1% monthly interest on unpaid taxes. Heavy fines for late filers Without filing, you can't carry forward capital or business losses, claim TDS refunds, or access certain tax-saving opportunities. No ITR, no tax benefits Financial institutions and embassies often require ITRs. Not filing could block your loan, visa, or startup plans. Loan, visa, and business hurdles The Updated Return (ITR-U) scheme lets you file past returns, but comes with steep penalties—sometimes adding up to 70% of the due amount. You can fix it, but at a cost
Time of India
5 days ago
- Business
- Time of India
I-T dept prosecutes 2 techies for misusing updated tax return provision
1 2 Hyderabad: The investigation wing of the income tax department in Hyderabad has launched prosecution proceedings against two software professionals for allegedly attempting to defraud the tax system, even after being given a chance to correct their returns through the ITR-U provision, a facility meant for taxpayers to voluntarily correct omissions or errors and pay additional tax without facing harsh penalties. The two individuals, employed in city-based IT companies, initially filed IT returns claiming fake deductions under section 80GGC, which allows deductions for political donations. On verification, these donations were found to be bogus. The department issued notices and allowed them to file updated returns under the ITR-U mechanism. Instead of using the opportunity to correct their filings, both individuals allegedly withdrew the fake donation claims but introduced new bogus deductions in their updated returns, again under-reporting their taxable income and paying only a marginal increase in tax liability. You Can Also Check: Hyderabad AQI | Weather in Hyderabad | Bank Holidays in Hyderabad | Public Holidays in Hyderabad ₹1.2 crore fraud In the first case, the taxpayer is accused of claiming ₹1.2 crore in false deductions over three years, including fraudulent political donations, exempt gratuity, and other retirement-related deductions. Upon receiving notice, he withdrew the flagged claims but replaced them with new deductions, slightly increasing his taxable income to appear compliant, while evading a significant portion of his tax dues. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Payroll Errors Cost More Than You Think: See How Automation Helps Learn More Undo Department officials said the evasion occurred over four financial years and pointed to a pattern of deliberate manipulation rather than an unintentional mistake. Fake claims by 2nd techie The second individual followed a similar modus operandi, allegedly claiming ₹1.02 crore in bogus deductions over three years. After being flagged for fake political donations, he filed an updated return for that year removing the entry. But when questioned for earlier years, he again filed revised returns with different fraudulent deductions, under-reporting income and paying minimal tax. Investigators said they found mobile phone chats between the taxpayer and his auditor which explicitly discussed fabricating claims to reduce tax liability. This, the department said, confirms intentional evasion and misuse of the ITR-U facility. Officials said both taxpayers abused the trust-based system and the updated return framework, which is intended for genuine rectifications—not for introducing new fraudulent claims. The ITR-U provision, they clarified, is meant to report unintentional under-reporting of income and pay due taxes. Filing updated returns with new sets of bogus claims undermines the spirit of voluntary compliance and constitutes deliberate tax evasion. Prosecution under Sec 276C, 277 Based on the evidence, the department has initiated prosecution under sections 276C(1) and 277 of the Income Tax Act, 1961. Section 276C(1) deals with wilful attempts to evade tax, punishable by rigorous imprisonment of six months to seven years, along with a fine, if the evasion exceeds ₹1 lakh. Section 277 pertains to making false statements or submitting false accounts, carrying similar punishment. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and s ilver prices in your area.
Mint
6 days ago
- Business
- Mint
Income Tax: What happens if you don't file ITR for multiple years? Legal and financial consequences explained
Failing to submit your Income Tax Returns (ITR) for several years can have serious consequences for individuals. Repeated delays, omissions attract mounting penalties, legal complications, and other associated challenges. Such mismanagement of tax filing can create financial barriers and cause a rift in long-term planning. As a well-informed taxpayer, you should focus on meeting deadlines and following the rules and regulations set by the income tax department. Do keep in mind that the ITR deadline for the Assessment Year 2025-26 is September 15, 2025. Serial non-filing or income tax submission is met with stern action by authorities: Section 234F of the Income Tax Act imposes a ₹ 5,000 penalty for those with income above ₹ 5 lakh, and ₹ 1,000 for those below this threshold. These penalties are imposed if the prescribed ITR submission date is missed. This makes timely filing crucial to avoid additional charges. 5,000 penalty for those with income above 5 lakh, and 1,000 for those below this threshold. These penalties are imposed if the prescribed ITR submission date is missed. This makes timely filing crucial to avoid additional charges. Section 234A levies 1% monthly interest on overdue taxes until payment is made. This section of the Income Tax Act thus penalises taxpayers for delaying payments, causing their outstanding tax liability to significantly grow with every passing month. Prosecution risk increases for willful defaults (Section 276CC). The punishment in this regard ranges from three months to up to seven years imprisonment and steep fines for serious tax evasion or repeated violations. The cost of non-compliance is not just limited to penalties: Taxpayers forfeit the chance to carry forward losses, including business and capital losses, leading to missed tax planning opportunities. For example, short-term capital loss can be carried forward to the next eight assessment years immediately following the year in which the loss occurred. That is why not filing taxes can result in harming long-term tax savings as well. Inability to claim tax refunds if ITR remains unfiled, resulting in direct financial loss. This simply means that, for example, in case you have a tax deduction at source (TDS) deduction on dividends through stock holdings. Then this amount can only be claimed by filing your taxes on time. Lack of recent ITRs also negatively impacts eligibility for personal loans and credit cards, as financial institutions treat ITR documents as proof of income. Missed returns can disrupt visa processing and business registrations, where tax compliance records are mandatory. Basically, if you aspire to begin any new business, then filing taxes on time and on a consistent basis is something indispensable. The government now permits updated return filings (ITR-U) for up to four previous years. Still, this comes with an extra tax and surcharge that can even reach 70% of the total overdue liability. While this provides much-needed reprieve, the high cost underlines the need for timely compliance. Hence, prompt action to regularise past filings mitigates both escalating legal trouble and rising financial penalties. For all personal finance updates, visit here. Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Tax laws and regulations are subject to change, and individual circumstances may vary. Readers are advised to consult a qualified tax professional or legal expert before making decisions related to income tax filings or compliance.
Time of India
04-08-2025
- Business
- Time of India
ITR filing deadline: What is the last date for filing returns for taxpayers not requiring an audit?
When is the last date for filing ITR for taxpayers whose accounts are not required to be audited? Academy Empower your mind, elevate your skills What is the last date to file an updated income tax return? What is the last date to file belated ITR? The Income Tax Department has extended the deadline for filing income tax returns (ITR) for FY 2024-2025 (AY 2025-2026) from July 31, 2025, to September 15, 2025. With the extended deadline, certain taxpayers now have an additional 45 days (from July 31) to submit their ITR. The revised deadline applies to Hindu Undivided Families (HUFs), individuals, and taxpayers whose accounts are not subject to tax audit. It is important to note that ITR deadline varies among taxpayers; these deadlines are determined by nature of income reported in ITRs, as outlined by the Income Tax Act of process of filing ITR for FY 2024-2025 has become more complex due to changes in the capital gains tax laws and income tax slabs established under the new tax regime. To provide more time for the aforementioned group, the Income Tax Department has extended the deadline for filing an ITR by 45 September 15, 2025, salaried individuals and other taxpayers whose accounts are not subject to audit can file their income tax returns. The original ITR filing deadline for these taxpayers was July 31, 2025, for Fiscal Year 2024-25 (AY 2025-26). However, this date has been extended due to modifications made to the Income Tax Act in the Union Budget to the press release issued by the Central Board of Direct Taxes (CBDT), "The notified ITRs for AY 2025-26 have undergone structural and content revisions aimed at simplifying compliance, enhancing transparency, and enabling accurate reporting. These changes have necessitated additional time for system development, integration, and testing of the corresponding utilities. Furthermore, credits arising from TDS statements, due for filing by 31st May 2025, are expected to begin reflecting in early June, limiting the effective window for return filing in the absence of such extension. This extension is expected to mitigate the concerns raised by stakeholders and provide adequate time for compliance, thereby ensuring the integrity and accuracy of the return filing process."The deadline for taxpayers to file updated income tax returns (ITR-U) has been extended from 24 months to 48 months from the end of the relevant assessment year (AY). According to income tax rules, the last date to file ITR-U is 48 months from the end of the relevant fiscal year. Hence, for AY 2025-26, the last date to file ITR-U is March 31, income tax laws allow taxpayers to file their income tax returns after the expiry of the due date. This ITR is referred to as a belated ITR. The last date to file a belated ITR for every category of taxpayers is December 31. For FY 2024-25 (AY 2025-26), the last date to file a belated ITR is December 31, 2025.
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Business Standard
31-07-2025
- Business
- Business Standard
Tax dept starts online filing of updated returns: Know what's the process
The Income-Tax Department has enabled online filing of updated returns (ITR-U) for assessment years (AY) 2021–22 and 2022–23 through ITR-1 and ITR-2. The facility allows taxpayers to fix omissions or errors made in earlier filings, be it unreported income, incorrect tax rates, or missing returns altogether. Here's what you should know about filing updated tax returns. What is an Updated Return (ITR-U)? Introduced in Budget 2022, ITR-U allows individuals and companies to voluntarily declare additional income not previously reported, even if no original return was filed. However, it cannot be used to claim refunds or reduce tax liability; it is purely meant for paying up dues. 'ITR-U is a final chance for taxpayers to correct errors and declare undisclosed income before the tax department catches it. It comes with a cost, but avoids harsher penalties or prosecution,' said Ritika Nayyar, partner at Singhania & Co. What's new this time? The revised process is more rigorous and 'unlike before, taxpayers now need to submit the full applicable ITR form alongside ITR-U, with detailed financials, not just the additional income,' said Sandeep Bhalla, partner at Dhruva Advisors. The, Progressive penalty: 25 per cent extra tax if filed within 12 months 50 per cent for 12–24 months 60 per cent for 24–36 months 70 per cent for 36–48 months New disclosures: More details on income source, reason for revision, and verification One-time filing per AY: You can't revise your updated return later Who should file it? You may consider filing ITR-U if: -You missed filing your return earlier -You underreported income from salary, interest, rent, or capital gains -You used the wrong income head or tax rate -You want to avoid scrutiny due to AIS/TIS mismatches But not everyone qualifies. Bhalla notes that updated returns cannot be filed if: A search, survey or reassessment is underway Proceedings are active under laws like PMLA or Benami Act Key precautions to avoid trouble Ensure accuracy: Match details with AIS, TIS, and Form 26AS Document everything: Keep proof for at least 7 years Act before proceedings start: If notices are issued, you lose this window While the tax hit can be steep, up to 70 per cent of additional tax and interest, the updated return window gives taxpayers a valuable last chance to come clean. As Nayyar says, 'It's not a loophole, but a legal safety net, use it wisely, and only if needed.'
