31st March 2018: deadline for filing belated returns….Really!!!!!!!

Here’s what you can do to file belated returns 

File a Condonation of delay request for specific cases:

The income tax department can allow taxpayers to file returns post the deadline for specific cases. CBDT has issued a circular No.  9/2015-Income Tax, Dated: 9-6-2015, in this regard where if the taxpayer has tax refund pending or wish to carry forward his losses and missed the deadline of filing of tax returns, then he can file an application to the Income tax commissioner or the prescribed authority,”

There are certain parameters based on which applications can be accepted or rejected by the department:

1. Case is based on genuine hardship on merits.

2. Income is not assessable in the hands of any other person under the Income Tax Act.

3. The refund has arisen as result of excess tax deducted or tax collected at source, advance tax or self-assessment tax.

4. The Pr. CCIT/CCIT/Pr. CIT/CIT dealing with the case shall be empowered to direct the jurisdictional assessing officer to make necessary inquiries or scrutinize the case in accordance with the provisions of the Act to ascertain the correctness of the claim.

The time limit to file such application is six years from the end of the assessment year for filing the return. (Assessment year is the year immediately following the financial year). Therefore, for such taxpayers who have missed the deadline of March 31, 2018, can file such application by 31 March 2023 (for FY 2015-16) and 31 March 2024 (for FY 2016-17). In case of belated tax refund, no interest will be paid by the department to you.

The application will have to be disposed by the department within six months from the end of the month in which the application is received as far as possible.

Exceptions:  

If all taxes are paid but return not filed

If the taxes you are supposed to pay have been cleared but if you have not filed your ITR before March 31, 2018, then you do not have the option to file their ITR now or to apply for condonation of delay. However, the department can issue a notice under section 271F for levying of penalty on non-filing of ITR. The maximum penalty in such a case is Rs 5,000. No penalty will be levied if there is a genuine reason for such non-compliance and if the income tax officer is satisfied with the reasons submitted.

Actions that tax department might take against you

• Every taxpayer is required to file ITR if his/her total income exceeds the basic exemption limit. The department can issue you a notice under section 148 for income escaping the assessment for non-filing of ITR. You will be required to respond to that notice on the income tax e-filing website as well as file your ITR to comply with the notice issued by the tax officer. For non-filing of return, the department can take various actions against you. This includes following
• Issuing a notice or in the worst case scenario,
• You might get penal actions and get a maximum jail term of seven years.
• Penalties as mentioned below
  • For FY 2015-16, a penalty of 100-300 percent of the tax payable amount will be levied as per the discretion of the assessing officer
  • For FY 2016-17, a penalty of 50 percent of the tax payable amount will be charged

If TDS has been deducted from your income and you have not filed your ITR, then department can issue you a notice under 142 (1) (i) for non-filing of returns. A penalty may also be levied by the assessing officer of Rs 5,000 for non-filing of income tax returns.

P.S. : If a person has at least paid his taxes along with interest even if he/she cannot file the ITR after March 31, 2018 then in such a case, chances are he/she might not be liable to pay penalty for under-reporting of income.