For the FY'18 i.e AY 2018-19, the timeline to file ITR was extended up to August 2018. And then the tax-filer has the option to file the return by the end of the FY i.e. March 2019. However such taxpayers will be included in the category of late filers who will be charged a late filing fees. For someone who have filed the return by December 31, 2018, the charges levied are Rs. 5000 while for others it is Rs. 10,000. Furthermore, a relief is granted to taxpayers whose income is less than Rs. 5 lakh, with late fees implication of Rs. 1000.
However now as the deadline has passed and if you have failed to comply with the deadline then you will be included in the category of prosecution and varied set of penalties:
In case you have not filed the ITR, the department of income tax will engage in prosecution proceeding against you for a term of between 3 months to 2 years. And in cases where the taxpayer owes over Rs. 25 lakh, then the period of prosecution may go up to 7 years.
Also, it is worth mentioning that where the net payable tax is below Rs. 3000, there are no such proceedings.
And for the FY 2019, you will perhaps be able to now file return after the departments sends a notice.
If the under-reporting in income is as a result of mis-reporting then the penalty equal to 200% of the amount of tax payable on under-reported income. On under-reported income, there will be a penalty implication of 50% of taxable amount will arise.
Plus due to late filing of ITR, you will have to face the following consequences:
Interest on the delay in filing return:
As per section 234A, there will be penalty of 1% per month or part thereof, till the tax payment is not made. Also, payment of taxes is followed by filing of ITR. And the calculation of interest will become applicable after the earlier extended deadline of August 31, 2018.
Losses cannot be set-off:
Other than house property losses, no other loss can be carried forward to subsequent years.. However, if there are losses under house property, carry forward of losses is permitted.
Also, refunds will be processed in lieu of higher taxes paid to the government in a timely manner, when the income tax return has been filed timely.