How To File Income Tax Returns (ITR) For Previous Years?
This article advises how one should file for ITR (Income Tax Returns) for earlier years and also tell about the most effective method to file ITR after due period and the strategy to do the same.
Each individual is sufficiently capable to file for his/her ITR on time. However, for a few reasons, in the event that they fall short to do as such, this article gives the choices and results for the same. Amongst the rundown of reasons, absence of info, natural disasters, obliviousness, not in India might be few to say. However, don’t stress because there are few sure ways available for you. How to file for ITR for earlier years after due period? Till what period, you can file for Tax returns relating to earlier years? What are the much asked inquiries about filing ITR for previous fiscal years?
The CBDT has made it compulsory for the people to file their ITR till July 31 of the evaluation year. This date is for those people who earn pay wage or self-employed; audit report not needed. Yet, in case, you don’t have the capacity to file for ITR before the endorsed due date then you can even file for overdue/postponed return of IT after due period under Section 139(4). This type of ITR, filed subsequent the due period is known as the Belated Return.
Belated return/Late return can be easily filed any time prior to the expiry of one year from the conclusion of the pertinent evaluation year. For instance, for ITR of the budgetary year 2015/16, the evaluation year would be 2016/17; the due period for filing ITR for the people will be July 31, 2016. Be that as it may, because of a few reasons, if a person doesn’t file ITR in time, then also there is no need to take stress, one can file his/her ITR for budgetary year 2015/16 up to March 31, 2018.
What is the method to file ITR for earlier years?
One can file ITR even prior to the due period. On the off chance that the individual has compensated the full amount of tax ahead of time, then no interest should be charged. On the off chance that any kind of tax is payable subsequent to the due date has passed; then interest of one percent will be charged till the month of the ITR is filed under U/S 234A of ITA.
In the event that an individual has refund furthermore hasn’t filed ITR on time, he’ll receive the full sum alongside the interest that will be provided at 5.5% each annum.
On the off chance that a person is having misfortune in business or job or having long haul or transient misfortune or having misfortunes from the past year then one ought to entirely remember that he or she should file ITR on time i.e. at the very latest of due date. If the person doesn’t file the ITR on time, then he or she won’t get the advantage of misfortunes or of misfortunes happened amid that year. One ought to likewise keep in mind that ITR filed under U/S 139(4) i.e. filed subsequent to due date can’t be overhauled. The return is filed U/S 139(3) of ITA and should be filed at the latest of the due period to profit.
A person can file his/her ITR even subsequent to the due period, but to maintain a strategic distance from any fine, he/she needs to file ITR before the end of the pertinent appraisal year i.e. for the financial year 2015/16, one should file return till March 31 2017. On the off chance that a person file his/her return after March 31, 2017 for the financial year 2015/16, then the evaluating officer has the power to force a punishment of Rs.5000.
On the off chance that a person is having profits from business or job and having accounts audited regularly, then he or she need to file return at the very latest of the due period and the due date is 30 September for those people. For defaulters who filed their ITR subsequent to the due period, there’s an enormous fine provision and i.e. 150,000 or 0.5 % of aggregate gross turnover which is less.
In the wake of filing ITR through the web, a person needs to send his/her return to the Head Office; Bengaluru in 120 days prior to the ITR filing. It should be sent by post or through the speed-post. Courier service is not permitted.
Benefits of filing ITR
It turns out to be your customary income proof and you are able to have loans authorized quickly as well as easily. You are able to trade in the stock market, open accounts in banks, obtain bank credits, as well as make investments and so on. And also you are able to do all these things without any effort if your rating is +ve in the monetary institutions books through simply filing the return. You can as well claim refunds for the taxes paid or deducted over and above your liabilities of tax. Many foreign nations want to be acquainted with your financial status prior to granting you visa. Therefore, to prove the financial status of yours, ITRs are must. So, don’t forget that it is your responsibility to file for returns. The taxes that you pay will work for the betterment of the nation. For professionals as well as business organizations, ITR is a must criterion to be eligible for filing tenders.
Drawbacks of not filing ITR
If you don’t file ITR in time then you’ll have to compensate interest on the tax dues at the time of filing for ITR. If you’ve incurred losses then you can’t carry the same to the subsequent years, on the off chance that you don’t file your ITR. You can become accountable for a fine or trial by the IT department on the off chance that you fail or conceal to reveal your income.