What is Consequences of not filing Income Tax Return?
Nexa Consultancy | Startup & Finance Glossary
Not filing your Income Tax Return (ITR) by the due date can lead to a late filing fee of up to ₹5,000, interest on the tax due, and an inability to carry forward business losses to future years. In severe cases, it can lead to prosecution.
Startup Example: A startup incurs a business loss in a year but fails to file its ITR. It cannot carry forward this loss to offset profits in the next year, resulting in a higher tax liability in the future.
We ensure all annual compliances, including ITR filing, are met.