Find
If there was genuinely no taxable income, the tax sought to be evaded is nil, which weighs against prosecution. But you must show it with accounts. Not filing also means the losses cannot be carried forward.
ITR
Small business that skipped returns because of losses
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Provisions
Sec 276CC (now Sec 479); Sec 80 (now Sec 121); Sec 44AB (now Sec 63)
Analysis
Prepare simple accounts for each year and show the losses with bank statements and GST returns. Explain that no tax was payable, which supports the absence of wilful evasion. Under Sec 80 (now Sec 121), business losses of years without a timely return are not carried forward. If turnover crossed audit limits, an audit default may also be raised, so check that.
Close
- Prepare accounts for each unfiled year.
- Show losses with supporting documents.
- File returns where a route is open.
- Reply explaining no tax was payable.
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