Interst over tax liability........ & penalty of Rs. 5,000/- at discretion of ITO
If the assessee is liable to file ITR for previous year 2016-17 but doesn't file the same, the department may serve various types of notices like 142(1), 147 or they can make best judgement assessment U/s 144 after intimating the assessee offcourse, and after the assessment, tax will have to be paid along with interest and penalty. If the assessee is lucky enough then he/she may not get such notices, but probability of getting the same increases if he/she has filed return for earlier year(s) and is having taxable income for P.Y. 2016-17.
It is advisable that where the last chance is still available, to file the return for P.Y. 2016-17 if the assessee is liable to file return.
The provision quoted by Mr. Toshniwal is applicable from AY 2018-19,i.e., P.Y. 2017-18, not applicable for P.Y.2016-17.
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