Belated and Revised Income Tax Returns

WANT TO FILE INCOME TAX RETURNS FOR FY 2021-22 (AY 2022-23): HURRY UP!! HERE IS YOUR LAST CHANCE TO FILE A BELATED OR REVISED RETURNYou are yet to file income tax returns or have you omitted or made any wrong statements in your income tax returns? Don’t worry, here is your last chance to file or rectify the mistakes or errors, or omissions in the income tax returns by filing the belated or revised returns on or before 31st December 2022.

Who is required to file income tax returns?

At the outset, every resident individual whose income exceeds the maximum amount not chargeable to tax (presently INR 2.5 lakhs in case of non-senior citizens, INR 3 Lakhs in case of senior citizens [60 to 79 years of age] and INR 5 lakhs in case of super senior citizens [80 and above years of age]) is required to file an income tax return with the income tax department. In certain cases, even if you have no income, there is still a requirement to file an income tax return, in case you have done any of the following :

       1.  A deposited amount exceeding 1 crore in one or more current accounts in               banks

       2. Incurred expenditure exceeding 2 lakhs for yourself or another person for               foreign travel

                                                                         or

      3. incurred expenditure exceeding 1 lakh rupees towards consumption of                       electricity;   

      4. Any other conditions as prescribed.  In certain cases, if you have any losses             under the head business or under capital gains, then also you are required             to file the return to carry forward the same. 

      

      Accordingly, it is critical to analyze whether any of the above conditions are            applicable to you.

    consequences of not filing income tax returns in time 

     Filing income tax returns is of the most importance. If the returns are not filed,         there could be severe consequences which may include the following:

  - Late fees of INR 5,000. However, if the total income is less than INR 5 lakhs, it would be restricted to INR 1,000

  - Additional interest @ 1 % per month or part thereof on tax is levied if the                     returns  are not filed within the due date.

 - Losses cannot be carried forward, however, if you have incurred any loss from         house property or there is any unabsorbed depreciation the same can be              carried forward even  if no return is filed.

 - Prosecution exposure also cannot be ruled out. 

Can the income tax returns be filed now?

 In case you are liable to file the return and you have not filed the returns up till now, you still have a chance to file the tax returns on or before 31st December 2022. Section 139(4) of the Income Tax Act, gives a chance to those taxpayers who have not filed the income tax returns within the due date (31st July 2022 for FY 2021-22). Hence, you may file the tax returns by the end of this month. However, you will still be required to pay the late fees and additional interest (if applicable). 

How to rectify mistakes or omissions in the income tax return?

If you have filed your income tax return, however, if there is any omission or wrong statement in the income tax return, then it can be rectified by filing a revised income tax return on or before 31st December 2022. Section 139(5) of the Income Tax Act, gives a chance to those taxpayers who have omission or made a wrong statement in income tax returns. The same can be rectified by filing the revised tax returns by the end of this month. 

Who can file a revised income tax return filing? 

A revised return can be filed only in both the below situations: a. Where the original return was filed within the due date of filing of return of income; orb. Where the original return was filed beyond the due date of filing of return of income in both the above situations if there is any omission or wrong statement in the original return, then a revised return can be filed. Once a revised return is filed, it steps into the shoes of the original return and replaces the original return. 

How to file a late/belated return of income on the income tax e-filing portal? 

Step 1: Log in to the income tax e-filing portal login into the income tax e-filing portal (https://www.incometax.gov.in/iec/foportal/) using the PAN number/ Aadhar and the password

Step 2: Click on ‘file now’ in the file your return for the year ended on 31-Mar-2022 appearing on the dashboard

 Step 3: Select 2022-23 (Current A.Y.) from the drop-down in select assessment year Step 

4: Select the online or offline mode of filing and click on continue Step 

5: In the case of the online method, fill the applicable income tax returnYou are required to fill the applicable income tax returns by selecting the return type as 139(4) belated return (https://www.incometax.gov.in/iec/foportal/help/identification-and-generation-of-applicable-itr-individual-faq) by submitting necessary details as required. 

Step 6: In the case of the offline method, select filing type as ‘139(4) belated return’ Step

 7: In case of offline method, select no in ‘Are you audited u/s 44AB or political party as per section 13A?’

 Step 8: In the case of the offline method, select the applicable ITR type and click to continue you are required to fill out the applicable income tax returns (https://www.incometax.gov.in/iec/foportal/help/identification-and-generation-of-applicable-itr-individual-faq) by submitting the necessary details as required. 

 Step 9: In the case of the offline method, fill the income tax return by using the offline    utilityThe offline utility is available at  https://www.incometax.gov.in/iec/foportal/downloads/income-tax-returns 

Step 10: In case of the offline method, attach the .json file and proceed with verification

Step 11: e-pay the taxIn case of a belated return, the late fees and the applicable tax, if any, must be paid (if payable) before furnishing the return.

 Step 12: Upon filing the return click on any of the below options:- I would like to e-Verify.- I would like to e-Verify later within 30 days from the date of filing- I don't want to e-Verify and would like to send a signed ITR-V through normal or speed post to "Centralized Processing Center, Income Tax Department, Bengaluru - 560 500" within 30 days from the date of filing.

Step 13: Click on 'Submit' the ITR.

If the 'I would like to verify option is selected, e-Verification can be done through any of the following methods by entering the EVC/OTP when asked for.- EVC generated through bank ATM or- Generate EVC option under My Account Aadhaar OTP- Prevalidated Bank Account- Prevalidated Demat Account, However, if the other two verification options are selected, the income tax return will be submitted to the department, however, it would not be processed unless it is verified. 

How to file a revised return of income in the income tax e-filing portal?

The steps to file the revised income tax filing are as under:

Step 1: Login in to the income tax e-filing portal 

login into the income tax e-filing portal (https://www.incometax.gov.in/iec/foportal/) using the PAN number / Aadhar and the password

Step 2: Click on ‘File revised return’ in the assessment year 2022-23 appearing in the dashboard

 Step 3: Select 2022-23 (Current A.Y.) from the drop-down in select assessment year

 Step 4: Select the online or offline mode of filing and click on continue: 

Step 5: In the case of the online method, fill the applicable income tax return

You are required to fill the applicable income tax returns by selecting the return type as 139(4) belated return (https://www.incometax.gov.in/iec/foportal/help/identification-and-generation-of-applicable-itr-individual-faq) by submitting necessary details as required.

 Step 6: In the case of the offline method, select filing type as ‘139(5) revised return’

 

Step 7: In case of the offline method, select No in ‘Are you audited u/s 44AB or political party as per section 13A?’

 Step 8: In the case of the offline method, select the applicable ITR type and click to continue

You are required to fill out the applicable income tax returns (https://www.incometax.gov.in/iec/foportal/help/identification-and-generation-of-applicable-itr-individual-faq) by submitting the necessary details as required. 

 Step 9: In the case of the offline method, fill the income tax return by using the offline utility. The offline utility is available at https://www.incometax.gov.in/iec/foportal/downloads/income-tax-returns:

 Step 10: In case of the offline method, attach the .json file and proceed with verification The steps for verifications are similar to that of belated returns. 

Important points to consider while filing the return of income.

1. Kindly ensure the details in the return of income are properly captured with factual information.
2. Kindly ensure the correct email id and mobile number are updated in the e- filing portal and the return of income
3.  Kindly ensure the correct ITR form is selected- Kindly fill in all the relevant schedules of the ITR.
4.  Do reconcile the income details with Form 26AS- Also, reconcile the income and transaction details with the Annual Information statement.
5.  Kindly ensure proper taxes are discharged along with applicable late fees/interest-    Kindly ensure the details of brought forward losses are correctly captured
6.  Kindly ensure adjustment of current year losses- Do take the advice of your consultant on complicated tax issues. 

Overall, this is a final opportunity to file the income tax returns, and accordingly, it may be availed properly. If the returns are not filed now, then the return can be filed only in specific circumstances with a higher tax outflow. Therefore, taxpayers are required to make use of this opportunity and streamline their tax returns. Having a proper track record of income tax returns would help in improving your financial health and achieving your financial goals.

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