If you do not pay your income tax, you may face the following consequences:
- Interest on Unpaid Taxes: If you do not pay your taxes by the due date, the tax department may charge you interest on the outstanding amount. The interest rate is usually 1% to 1.5% per month, depending on the type of tax.
- Late Filing Fees: If you fail to file your income tax return (ITR) by the due date, you may be required to pay a late filing fee as per the provisions of Section 234F of the Income Tax Act.
- Tax Notice: If the tax department suspects that you have not paid the correct amount of tax, it may issue a notice to you asking you to pay the outstanding amount. If you fail to respond to the notice, you may face further enforcement action.
- Criminal Proceedings: In extreme cases, if you have not paid taxes despite repeated reminders, the tax department may initiate criminal proceedings against you.
Therefore, it is advisable to file your taxes on time and pay any outstanding tax liabilities to avoid these consequences. If you have difficulty paying your taxes, you can contact the tax department for guidance on payment options or alternative arrangements
