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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
