Everything you need to know on Filing of Income Tax return for Previous Year
August 30, 2022
A complete guide for a taxpayer on Filling of Income Tax Return for Previous Year
Table of Content
It is mandatory for an entity to file their ITR. Your income, total taxes owed, liabilities, and tax refunds for the fiscal year are all included in the ITR. ITR must be submitted before the deadline i.e. 31st of July (Non-Audi Cases) and 31st of October (Audit Cases) of each year. In this article information such as the advantages of filing a previous year’s ITR, the Consequences of not filing of Income Tax return for the Previous Year’s, and Important points for filing Income Tax Return for the Previous Year’s.
Income Tax Return for the Past Year
- According to section 139(4) of the Income Tax Act of 1961, any person who fails to submit their income tax returns by the deadline may do so by filing a belated return with the appropriate late fee.
- This late return maybe submitted at anytime until the end of the relevant assessment year or, if earlier, before the tax authorities have finished their evaluation.
- If the assessee has submitted a belated ITR, he is required to pay the tax as well as 1% interest per month under Section 234A of the Income Tax Act.
- Similar to that, the taxpayer should submit the late ITR together with the prescribed penalty.
- According to the Income Tax Act, the belated ITR can also be updated, allowing any errors committed during the income tax return filing.
- Taxpayers who are not required to pay any taxes are excused from paying interest and penalties for filing a belated ITR as long as they do so before the end of the relevant assessment year.
Advantages of filing previous year’s ITR
- Loans: If you settle prior tax returns, your loan application will be approved more quickly.
- Investments: Making investments or trading in the stock market will be quite simple once you have finished filing your tax returns for past years. If your tax returns are accurate, it demonstrates your commitment to upholding your civic duties.
- Income proof: People who fulfil their obligations to file tax returns from prior years may submit their documentation as needed, such as when buying products on credit.
- Refund: People who owe more in taxes than they can pay for the previous years maybe eligible for a refund of the extra money.
- Travel: People who pay their past-due income taxes can benefit from expedited processing of their visas for foreign travel. A person’s obligations to the government and the economy are confirmed after they have paid off all of their tax debt.
Essential Points related to the filing of ITR for Previous Year
The income tax department permits taxpayers to submit returns after the deadline. You can submit a request for a condonation of delay in the ways listed below:
- Declare your explanation for missing the deadline and ask the Income Tax Commissioner or the appropriate authority for permission to file income tax returns. The following standards will determine whether the officer grants your request:
- The assertion is true and accurate.
- The case is supported by substantial merits.
- Excess tax deduction, TDS (Tax Deducted at Source), advance tax, or self-assessment tax have all led to a refund.
- The Income Tax Act prohibits the assessment of the tax by anybody else.
- Within six years following the end of the assessment year for filing the return, returns must be filed for such petitions.
- If you have not paid your tax for the financial year, Section 234A, 234B, or 234C requires you to pay the tax as well as any applicable interest. Even if you are unable to submit your income tax returns, you must still pay the tax.
- It is possible that you filed returns but paid your taxes on time. You are not permitted to file tax returns or get a delay pardon in this situation.
- You must reply to any notice you get from the income tax division on the income tax e-filing website. The ITR can then be filed in order to abide by the notice.
Suggested Read: Additional Information that needs to be filed in ITR Form by Taxpayer
Consequences for not filing of Income Tax return for Previous Year
- If an ITR is not filed, the income tax department may issue a notice under Section 271F. A fine of up to INR 5,000 maybe imposed on you if the deadline is missed. You might not have to pay the penalty if you have a valid justification for not filing and the officer is happy with it.
- If you do not file returns, the income tax department may take legal action against you by issuing a notice and imposing penalties. In the worst-case scenario, you might face legal action and a seven-year prison term.
- If you under-reported your income, you might face fines of up to 200 percent of the amount of tax due. The assessing officer may waive the penalty if the taxpayer under-reported his income but paid taxes with interest after the deadline. In this situation, no penalty will be assessed against the taxpayer. Although there is an alternative if you are unable to file your ITR by the deadline, it is advised that you do so by July 31 of the relevant assessment year.
You will be able to file your returns in accordance with the guidelines established by the Income Tax Department. Belated returns are those that are filed after the deadline has passed. There is also a late fee associated with previous year returns.
Income Tax Return
Filing of Income Tax return is necessary if you have earned any income. File your ITR with EbizFiling.
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