Impact of non-filing of ROI

Non filing of ROI may result to penalty of 5000 for each year and one may be subject to prosecution under section 276 CC. However a person will not be charged for penalty or prosecution for failure to furnish return of income under the following circumstances –

- If the return is furnished by him before the expiry of the assessment year

- The tax payable by him on the total income determined, as reduced by the advance tax, if any, paid, and any tax deducted at source (TDS), does not exceed three thousand rupees.