What happens if a person not paid the income tax?

my friend has submitted 1 lac saving to company & now he left the company in other orgn.As per rule he has to pay 40000 rs tax if he has not save 1 lac rs under 80 c now he is not agree to save this money & left orgn before paying tax. what happens if he not pay tax

7 Replies to “What happens if a person not paid the income tax?”

  1. Generally most companies deduct tax at source. Now that he has joined the new organisatin he would have submitted the salary slip & details. His new company will also ask him for declaration & the proof of investments. If he is unable to produce it, he would be charged the Rs.40,000 tax in the next 3 months & tax will be deducted from his salary payable.

  2. He has to pay the penalty of Rs.40,000 additional to the tax if the tax authority found then the total tax will be Rs.80,000. If he want escape this tax he has to pay around the same to the INCOME TAX Department if they found out.

    If they found out and take back the previous year return and found out that he has not paid tax say if it was the same Rs.40,000 for every year they will open upto 6 years record and the concealment penalty(100%-300%)of the income concealed will be up to Rs.7,20,000 for Him.
    Then the total tax payable if it was Rs.40,000 for every year will vary from 4,80,000 to 9,60,000.

    I want to say to reg that he dont know the differce between the reveue department and the income tax department please rectify U R self it was income tax department which was ithe the Central government and the revenue department was with the state government.

  3. The revenue service will audit his previous returns and if he didn’t pay the current ITR he will be sent notice. He has to appear at the revenue office and talk to the revenue officer. There will be several hearings but if no agreement is reached he could get sued for tax evasion and could go to jail.

  4. It is his luck if not paying and get caught will pay or suffer as it is his responsibility.

    I do not think India follows Tax deductible at source as individual file on them mostly except of Banks and MN C’s i guess.

  5. Having committed/declared to the employer that you will save or your friend might have shown savings in so and so..he can not escape his responsibility simply by changing the organisation. Responsibility lies on your friend. He has to submit IT returns. Employer only gives form 16. Your friend has to choose right path. If he wants to smarter than Charles Sobraj, let him face the consequences accordingly at a later date. Being a salaried persons we should be very careful in such matters. Strive for happiness by doing……

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