Missed Filing Your ITR? Here’s the Income Tax Notice You Might Get

Introduction 

Filing your Income Tax Return (ITR) on time is crucial to avoid penalties and scrutiny from the Income Tax Department. However, if you miss the deadline, you may receive a notice from the tax authorities asking you to explain the delay or rectify discrepancies. 

Ignoring such notices can lead to interest charges, penalties, or even legal action. This guide explains the different types of income tax notices you may receive for missing your ITR filing deadline, their implications, and the steps to resolve them. 

Types of Income Tax Notices for Missing the ITR Deadline 

If you fail to file your ITR on time, the Income Tax Department may send you a notice under various sections of the Income Tax Act, depending on the severity of the non-compliance. 

1. Notice Under Section 142(1) – Inquiry Before Assessment 

If you have not filed your ITR despite being required to do so, the tax department may send a Section 142(1) notice asking you to furnish your return. 

Why You Might Receive This Notice 

• You failed to file your ITR within the deadline.
• The tax department wants additional details about your income, deductions, or tax payments. 

Implications of Ignoring This Notice 

• If you do not respond, the tax officer may assess your income based on available information and issue a demand for tax dues.
• In serious cases, non-compliance could result in a penalty under Section 271(1)(b) or prosecution under Section 276CC. 

2. Notice Under Section 139(9) – Defective Return Notice

If you submitted an ITR but missed key details or filed an incorrect form, the department may send a Section 139(9) notice, treating your return as defective. 

Common Reasons for Receiving This Notice 

• Mandatory fields in the ITR are left blank.
• The ITR form used is incorrect.
• Mismatch between declared income and Form 26AS. 

What Happens If You Ignore It? 

• Your ITR will be considered invalid, and you may need to file a belated return with late fees.
• If you fail to respond within 15 days, the tax department may proceed with further action, treating you as a non-filer. 

3. Notice Under Section 148 – Reassessment Notice 

If the tax department suspects that you have underreported or concealed income by not filing your return, they may issue a Section 148 notice for reassessment. 

Why You Might Receive This Notice 

• High-value transactions detected that are not reported in your tax filings.
• Large cash deposits, property purchases, or stock investments without corresponding ITR.
• Past returns showing discrepancies or mismatches with financial records. 

Consequences of Ignoring This Notice 

• The department may reassess your income and issue a revised tax demand.
• Failure to respond can result in interest, penalties, or even legal action. 

4. Notice Under Section 245 – Adjustment of Refunds Against Tax Dues

If you have unpaid tax dues from previous years and you file a late return expecting a refund, the department may issue a Section 245 notice stating that your refund will be adjusted against outstanding tax liabilities. 

What You Should Do If You Receive This Notice 

• Log in to the e-Filing portal and check the outstanding tax demand.
• If the demand is incorrect, file a response explaining the discrepancy.
• If the demand is valid, pay the outstanding amount to avoid further penalties. 

Penalties for Missing ITR Filing Deadlines 

If you fail to file your ITR on time, you may face the following penalties: 

• Late Fees Under Section 234F – ₹1,000 for income below ₹5 lakh, ₹5,000 for income above ₹5 lakh.
• Interest Under Section 234A – 1% per month on outstanding tax dues.
• Penalty Under Section 270A – If underreporting of income is detected, a penalty of up to 50% of the tax due may apply.
• Prosecution Under Section 276CC – In extreme cases, non-filing of ITR can result in imprisonment ranging from 3 months to 7 years. 

How to Rectify the Situation If You Missed Filing Your ITR 

If you have missed your ITR filing deadline, take immediate action to avoid penalties and notices: 

1. File a Belated Return Under Section 139(4) 

• If the assessment year is not yet over, file a belated return with late fees.
• Use the Income Tax e-Filing portal to complete the process. 

2. Respond to Notices on Time 

• If you receive a notice under Sections 142(1), 139(9), or 148, check the deadline for response
• Log in to the portal, download the notice, and submit the required details. 

3. Pay Any Pending Tax Dues 

• Use the Challan 280 option on the tax portal to clear outstanding dues.
• This prevents additional interest or penalties. 

4. Consult a Tax Expert for Assistance 

• If you are unsure how to respond to a tax notice, seek professional guidance.
• A tax consultant can help you file the correct response and avoid further complications. 

Conclusion 

Missing your ITR filing deadline can lead to income tax notices, penalties, and even legal consequences. If you receive a notice for non-filing, respond promptly through the e-Filing portal to prevent further action. 

The best way to avoid tax notices is to file your ITR on time every year. If you’ve missed the deadline, act immediately to file a belated return and clear any tax dues to stay compliant with tax laws.