Income Tax Return filing for AY 2019-20: The process to file income tax returns for the new financial year has started. The income tax return is a form where taxpayers declare their taxable income, deductions, and tax payments.

Income Tax Return filing for AY 2019-20: The process to file income tax returns for the new financial year has started. The income tax return is a form where taxpayers declare their taxable income, deductions, and tax payments. The deadline to file the income tax return for this year has been set as July 31. While most people find the process confusing, there is absolutely no need to worry. In case you end up paying an extra amount, the I-T department will refund it to your account. To file ITR, you need to fill forms ITR 1 to ITR 7, used for different types of income.

Suresh Surana, RSM astute consulting group told Zee Business TV that the last date to file the income tax returns is July 31. "The deadline for those whose accounts are audited is, however, September 31," he said. But, what happens if you fail to file the income tax returns on time? Well, in this case, you might invite a lot of trouble for yourself. This includes penalty as well as further prosecution.

Late ITR filing
Surana explained that in case an individual fails to file the income tax return on time, first of all they have to pay a late penalty. Apart from this, they might even face prosecution. "The penalty for filing the income tax return after July 31 and till December 31 is Rs 5,000. If the return is filed between January 1 and March 31, the amount to be paid is Rs 10,000. The taxpayers can't get a waiver for this," he said.

The Income Tax department also charges 1 per cent interest per month on the unpaid tax amount. This will add an additional burden on you.

"The defaulters could also be jailed for two to seven years under Section 276CC. Even though this doesn't happen that frequently, there is always a risk," Surana said. The section says that the taxpayer shall be punishable "in a case where the amount of tax, which would have been evaded if the failure had not been discovered, exceeds one hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine."

In any other case, the defaulter should get imprisonment for a term which shall not be less than three months but which may extend to three years and with fine: provided that a person shall not be proceeded against under this section for failure to furnish in due time the return of income under subsection (1) of section 139.

Surana said the taxpayers should also know that if they are having a loss in capital gains or business and fail to pay tax on time, they won't be allowed to carry forward the loss. "Only the loss in house property is allowed to be forwarded," he said.