Brandt K 25 December 2023

Didn't file taxes — further steps and repercussions?

If I didn’t file or pay taxes two years ago, what are the possible repercussions? My main concern is persecution/legal action.

Does the IT department first have to send a notice to file and pay (with the accrued interest + fine etc) and can only persecute if there is no action or response from recipient? Or can they directly take legal action against me without any notice? Is there anything I can do now to remedy this situation?

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Quick Summary

If you haven't filed or paid taxes for two years, you're likely concerned about legal action. Generally, the tax authorities will issue a notice with a deadline for filing and payment, including interest and penalties. Failure to respond can lead to legal proceedings. It's advisable to file your outstanding returns and pay any due tax as soon as possible to mitigate penalties and avoid further complications.

2 Replies

T. Kalaiselvan, Advocate (Advocate) 25 December 2023

You will be notified about the pending taxes and issue a deadline with minimum penalty to pay them, failing which the income tax department may initiate legal action as per law.