SHORT ANSWER:
The penalty for not filing Income Tax Returns (ITR) for multiple years can be up to ₹10,000.
DETAILS:
- Under Section 234F of the Income Tax Act, if a taxpayer fails to file ITR by the due date, they may face a penalty.
- The penalty amount varies based on the delay in filing:
- ₹5,000 if the return is filed after the due date but before December 31 of the assessment year.
- ₹10,000 if filed after December 31 of the assessment year.
- If the taxpayer's total income is less than ₹2.5 lakh, the penalty is reduced to ₹1,000.
PUNISHMENT / IMPLICATIONS (if applicable):
- Non-filing may also lead to interest on unpaid taxes and potential legal action.
SOURCE:
- Income Tax Act, 1961
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