How many Previous years Income tax return can be filed after due date

By | June 8, 2016
(Last Updated On: June 8, 2016)

 Previous years Income tax return can be filed after due date

How many Previous years Income tax return can be filed after due date

 Previous years Income tax return :For Financial Year 2015-16 (AY 2016-17) and earlier years

Any person who has not furnished a return within due date he may furnish the return for any previous year at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier  [ section 139 (4)]

 Thus previous two years  income tax return i.e year ending 31.03.2015(AY 2015-16) and 31.03.2016            (AY 2016-17) can be filed  as follow :-

Suppose an assessee

-An assessee has not filed return of income for a Financial Year 2014-15(Assessment year 2015-16) on the due date i.e 31.07.2016 , as per the provision  of section 139 (4) , Assessee can file income tax return upto 31-3-2017

-An assessee has not filed return of income for a Financial Year 2015-16 (Assessment year 2016-17) on the due date i.e 31.07.2017 , as per the provision  of section 139 (4) , Assessee can file income tax return upto 31-3-2018.

Thus the Assessee can not file the income tax return for year ending 31.3.2014 and earlier years . It is considered as time barred. Many tax payers manually submit the preceding 2 or 3 previous years return to complete their remaining responsibilities. However, whether to consider these returns or not is the discretion of the department. Income tax department may decide whether a penalty is to be imposed or not for such type of return. So tax payer should avoid filing a late return.

 Previous years Income tax return: From Financial Year 2016-17 (AY 2017-18) onwards 

A person, who has not furnished a return for any previous year by the due date, may furnish the same before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier. [ section 139(4)]

Example : Suppose Mr A earns salary income of Rs 500000 /-  during FY 2016-17 (AY 2017-18) thus he is required to file income tax return by 31st July 2017 (due date) . But he does not file it.  Thus he can file the income tax return after due date , in respect of assessment year 2017-18, the time available would be up to 31-3-2018 or before the completion of the assessment, whichever is earlier.

Revision of Previous years Income tax return

A person may also revise such return before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier. relevant potion of Section 139 (5) is as follow applicable from AY 2017-18

If any person, having furnished a return under 139(1) or 139(4), discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.”; [ section 139(5) ]

Example : Suppose Mr  A discover a mistake in his income tax return filed  after due date for AY 2017-18  Thus he can revise the income tax return in respect of assessment year 2017-18, the time available would be up to 31-3-2019 or before the completion of the assessment, whichever is earlier.

Consequences of filing Previous years Income tax return after due date

Delay in receiving Income tax refund

If you delay the income tax return , you will delay the income tax refund.

If your refund is due from income tax department , then file the return as soon as possible and claim refund. Return filed first are normally processed first. So take refund on time and enjoy it the way you like !

loss of Interest on Income tax refund

Where return is filed after the due date , interest on refund is paid only for the period from the month of filing the return to the date of refund. thus no interest is paid for the period from April 1 of the assessment year to the date of filing the belated return / return filed after due date

Losses Can not be carried forward in case of delay in filing income tax return

If you file income tax return after due date ​Loss (other than house property loss) cannot be carried forward to future. Thus if in future you earn any profits ,you can not set off losses of previous years in case of delay in filing income tax return of previous years in which loss was incurred.

You cannot carry forward following losses in case you delay filing of income tax return

  • Speculation loss,
  • business loss excluding loss due to unabsorbed depreciation and capital exp on scientific research,
  • short term capital loss ( e.g loss on trading of shares etc in case share sold in one year )
  • long term capital loss .
  • loss due to owning and maintenance of horse races

Exemption/ Deduction not available in case of delay in filing income tax return

Exemptions/deductions under section 10A​, section 10B, 80-IA, 80-IAB, 80-IB, 80-IC , 80-ID and 80-IE are not available.

Not possible to revise return in case of delay in filing income tax return

Return filed after due date is called belated return. In case in future you deduct any mistake in income tax return than Belated return cannot be revised under section 139(5)​.

Notice in case of non filing of income tax return

You will be issued notice u/s 142(1) for non-filing of income tax return if the income tax department.

Interest Charged on non Filing of Income Tax return

Interest u/s 234A at the rate of 1% per month/part of the month would be charged

Penalty for late filing of Income tax return

If income tax return for AY 2016-17 is filed after March 31, 2017 but before March 31, 2018 the Assessing Officer could levy a penalty of Rs 5,000 under section 271F

Prosecution /Jail under Income Tax Act for non filing of Income tax Return

The Income Tax Act provides for prosecution—rigorous imprisonment of three months to seven years and a fine.Section 276CC of the I-T Act enables such prosecution proceedings.

If you haven’t filed your income-tax returns within the statutory deadline or within the time period available after the I-T department issues a notice, it could result in prosecution. In case of a firm or a company, it is persons responsible for the day-to-day conduct of the business—such as partners or directors—who could face prosecution.

The Supreme Cour has also held that in case prosecution proceedings are initiated, taxpayers have to prove the circumstances which prevented them from filing the I-T returns. Which means that the burden is on the taxpayer to prove that the failure to furnish the I-T returns was not wilful.

Concealment Penalty for non filing of Income tax Return

If you do not file return ,and there are assessable income , you are liable to penalty for concealment of income which range from 100% to 300 %.  Concealment Penalty for under reporting & misreporting of income: sec 270A.

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