non filing return

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 April 2010 one of my client had been filing retrun under salary upto a.y.2001-02, then he left the job and went to his native place. Now he has come back to mumbai again and started his small business and want to file his retrun from a.y.09-10. Now my question is while filing the retrun for last year will income tax dpartment will ask any clarification for non filing return for above skiped period.

Will they levy any penalty on escaped period.

Pl. guide me.

Thanks

Girish

CMA.Palani Arumugam

CMA.Palani Arumugam (Expert)
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06 April 2010 Yes. the Income tax department may seek clarification for non-filing of return for various years. However, if the income for the any year is below the exempted limit, then he need not have to file the return.

In your case, if the income for skipped period is below the exemption limit, there will not be any penalty for non-filing of return.

Querist : Anonymous

Querist : Anonymous (Querist)

06 April 2010 To,

Mr.Palani Arumugam

His income is below the exemption limit, for non-filing years. wheter he has to file the letter stating the reason along with returns for a.y.2009-10.

Regards

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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03 August 2024 When dealing with non-filing of tax returns for several years, there are a few key points to consider, especially when the taxpayer has income below the exemption limit for those years. Here’s a general guide based on your scenario:

### 1. **Filing for Previous Years**

- **Historical Returns**: For the years when no returns were filed (before AY 2009-10), the Income Tax Department may or may not specifically ask for clarifications if the income for those years was below the exemption limit. However, it is generally advisable to be proactive.

- **Filing for AY 2009-10**: When your client starts filing returns again from AY 2009-10, they should ideally file returns for the missed years as well if they were required to do so, even if their income was below the exemption limit.

### 2. **Penalties and Interest**

- **Penalties**: If the income in the skipped years was below the exemption limit and there were no tax liabilities, penalties for late filing may not be a significant issue. However, the Income Tax Department can impose penalties for not filing returns if they were required to be filed, even if there was no tax due.

- **Interest**: Since there is no tax due for those years, interest on tax is not a concern, but penalties for non-filing could be applicable.

### 3. **Proactive Approach**

- **Reason for Non-Filing**: It’s a good practice to include a letter or explanation stating the reason for non-filing of returns for the skipped periods, especially if you are filing a return for the year AY 2009-10. This helps in maintaining transparency and can prevent potential issues with the tax authorities.

- **Documentation**: Ensure that all documents, such as proof of income and reasons for non-filing, are well-documented and available. This can be helpful if the Income Tax Department asks for additional information.

### 4. **Compliance**

- **Voluntary Disclosure**: If your client has any outstanding issues, consider making a voluntary disclosure to the Income Tax Department, particularly if there was a mistake or oversight in the past. This can sometimes help mitigate penalties and show good faith.

- **Future Filing**: Ensure that all future returns are filed in a timely manner to avoid similar issues going forward.

In summary, while there may not be a significant penalty for non-filing if there was no tax due, it is wise to file the missing returns and provide an explanation to avoid potential complications. For specific advice and to address any potential issues, consulting with a tax professional or advisor familiar with current regulations and practices is always recommended.