CA Sakchi Jain Instagram – Skipping your income tax filing could be your biggest mistake!
1. Set-off Restriction: If you don’t file your ITR or file your tax return late, you will not be able to carry forward and set-off these losses against future profits. Although, you can carry forward the losses relating to house property.
2. Credit Score Impact: A history of late ITR filing can negatively impact your credit score in some cases. This is because lenders might view it as a sign of financial irresponsibility.
3. Travel restrictions: In severe cases, the Income Tax Department can impose travel restrictions to prevent you from leaving the country until you file your ITR and clear any outstanding dues.
4. Visa and Travel Issues: You may face difficulties while applying for visas or traveling abroad.
5. Loss of Professional Certificates: In some cases, professionals like chartered accountants, doctors, and lawyers may face loss of professional certificates or licenses.
6. Disqualification for benefits: You might be disqualified from applying for certain government benefits or loan applications if you have a history of late ITR filing.
7. Prosecution: If you fail to furnish your ITR and your income tax liability is more than Rs. 25,000 you shall be punishable with rigorous imprisonment of minimum 6 months upto 7 years and with a fine. In any other case( i.e. tax liability is less than Rs.25,000) you shall be punishable with rigorous imprisonment of minimum 3 months upto 2 years and with a fine.
8. Loan Subsidy Schemes: Certain government loan subsidy schemes, particularly those targeted towards entrepreneurs or specific sectors, might require timely ITR filing as an eligibility criterion.
9. Scholarship Programs: Some scholarship programs, especially those offered by the government or public sector undertakings, might look at your tax filing history as an indicator of financial stability.
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#IncomeTax #ITR | Posted on 03/Jul/2024 20:20:52
