I have not filed my tax returns for 5 years. However I have a few FD's in my name and I was wondering what would happen if I were to get audited and how do these audits take place. In the bank they ask for PAN number every time you deposit more than Rs. 50,000 and I have given out my PAN number quite a few times. I have also heard that they probably seize bank accounts. Can somebody please explain the process to me?
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1 Answer
Not filing a Return in itself is not a crime. If your income is less than the prescribed threshold or you belong to certain categories you need not file a tax return.
If you are a taxpayer in most cases you must file a return. If you fall under certain categories [for example own a house or have travelled abroad etc] you must file NIL return even if there is no tax due.
The audit are done by Income Tax officials. If your accounts get audited and there is a tax due, you would get a demand request for last 5 years along with penalties and interest that are substantially high. Plus there could be other charges as well.
Its best to consult a CA to advice as to how late returns can be filed and best course of action.
