You may go to jail for not filing IT Return even after IT Notice

A taxpayer can file the I-T returns by the end of the fiscal year in which the return is required to be filed and still not attract prosecution proceedings. For instance, the due date of filing returns for a salaried employee is July 31. In respect of income earned during fiscal 2012-13 (April 1, 2012 up to March 31, 2013) salaried employees had to file their I-T returns by July 31, 2013. However, even if the returns are filed by March 31, 2014, prosecution proceedings will not be attracted.  Similarly, no prosecution proceedings are initiated if the tax payable after prepaid taxes (advance tax and tax deducted at source) does not exceed Rs 3,000. However, such relief from prosecution is not available in case of a failure to file I-T returns in response to a notice sent by the tax authorities. This was the case in prosecution against the partnership firm of Tamil Nadu CM J.Jayalalitha.  Criminal court directed to complete trial in 4 months against Tamil Nadu CM. If you haven’t filed your income-tax returns within the statutory deadline or within the time period available after the I-T department issues a notice, it could result in prosecution. In case of a firm or a company, it is the persons responsible for the day-to-day conduct of the business—such as partners or directors—who could face prosecution. This was upheld by the Supreme Court in its order last week. The SC has also held that in case prosecution proceedings are initiated, taxpayers have to prove the circumstances which prevented them from filing the I-T returns. Which means that the burden is on the taxpayer to prove that the failure to furnish the IT Returns was not wilful. In addition to penal interest, the IT Act also provides for prosecution—rigorous imprisonment of three months to seven years and a fine. The IT department is touching new leaps and bounds for prosecution, the only thing that is left after this is announcing death penalty against defaulters. _____________________________________________________________________________________________ Feel free to write to us,at [info@taxmantra.com] or call us at +91 88208208 11.