New Delhi, July 13 -- Missing the income tax return (ITR) deadline or failing to comply with other provisions of the Income Tax Act can prove expensive. Depending on the nature of the default, taxpayers may have to pay late filing fees, interest or penalties. In some cases, the penalty can be be as high as 200% of the tax payable on the income that was incorrectly reported, according to the Income Tax Department.

Besides filing the ITR on time, taxpayers are also required to accurately report all sources of income, pay taxes within the prescribed timelines and maintain books or records wherever applicable. Different types of non-compliance attract different consequences under the Income Tax Act.

One of the most common defaults is filing...