If you have not filed income tax (I-T ) return till now, you better rush and complete the formalities by July 31. The tax department may impose a penalty of up to Rs 5,000 under section 271F on you for not filing I-T returns.
And, if you have unpaid tax of more than Rs 3,000 but less than Rs 1 lakh, you can be sentenced for a jail term of three months along with the penalty.
If the unpaid tax amount is more than Rs 1 lakh, the jail term can increase to a minimum of six months to a maximum of seven years, over and above the penalty, according to Central Board of Direct Taxes (CBDT) spokesperson Shishir Jha. This time CBDT will clamp down on I-T defaulters, said a senior CBDT official.