The income tax return (ROI) should be filed by the person even though their gross total income is less than basis exemption limit.

The return filing has been made electronically by the income tax department with no requirement of attaching the supporting documents related to the return.

From finance Act 2016, Belated return (under section 139 (4) cannot be filled and revised later than end of relevant assessment year.

In this article, I have tried to give emphasis on filing of the ITR. Even the person (having PAN number) do not have any income (whether taxable or not) the also, he may file return to get the advantage of the filing of ITR.

 BENEFIT OF FILING THE INCOME TAX RETURN (ROI)

 1) ITR Receipt – Important document:

Having an ITR receipt is important because it is more detailed than Form 16, entailing your income and taxation along with revenue from other sources.

2) Claiming refund

There could be a possibility that there has been tax deducted at source (TDS) on some investment made in the name of the individual. Then If TDS has been cut, one will have to file the ITR to claim refund of the same

3) Processing of documents easier – bank loan:

Being a diligent income tax filer makes it easier for banks to assess your source of income when you apply for loans like an auto loan, home loan etc.

Banks usually ask for copies of tax returns filed for previous 2-3 years at the time of applying for the loan to ascertain income capacity of the individual. Hence, to apply for loans a tax return would be required to be filed.

4) Credit Card Processing

Banks can reject your credit card application if you haven’t filed your ITR.

5) hassle-free visa application procedure

At times visa authorities ask for copies of past tax returns, hence to apply for a visa a tax return would be required to be filed. Embassies, especially those of US, UK, Canada etc. when processing your foreign visa application, are particular about your tax-compliance

6) To buy an insurance policy with a higher cover

If insurance companies have reasons (non-compliance) to believe that you are a tax-evader, they will not give you policies with more cover.

7) Establishing income proof -self-employed and independent professionals/ businessman.

Freelancer or self-employed people don’t have Form16. This is the only document they have to show that he has filed the ITR. Without this, they can face funding issues and transactional problems.

8) Use as address proof

ITR receipt is sent to your registered address, which can serve as residential proof.

9) Set-off losses in the next financial year

As per the income-tax provisions, if tax returns are not filed on time, unadjusted losses (with some exceptions) cannot be carried forward to future years.  So If you file the income tax return within the due date, you will be able to carry forward losses to subsequent years, which can be used to set off against income of subsequent years.

Please note loss under the head “Income from house property” can be carried forward even if the return of income/loss of the year in which loss is incurred is not furnished on or before the due date of furnishing the return, as prescribed under section 139(1).

10) Helps to avoid extra interest

If you don’t file ITR, the belated return could lead to extra interest at 1% per month under section 234A for the remaining tax payable by you.

11) Avoid penalties or scrutiny from the tax department

Section 234F is introduced from FY 2017-18 in order to ensure that returns are filed within the prescribed due date. From FY 2017-18 Rs 10,000 would be levied as penalty for non-filing of ITR.

DUE DATE

The due date for filing Income Tax Returns for FY 2017-2018 (AY 2018-2019) as per section 139 (1)

Category of Taxpayer Due Date for Tax Filing – FY 2017-18
(i) Where the assessee, other than an assessee referred to in clause (ii), is –

(a) a company,

(b) a person (other than a company) whose accounts are required to be audited under the Income-tax Act, 1961 or any other law in force; or

(c) a working partner of a firm whose accounts are required to be audited under the Income-tax Act, 1961 or any other law for the time being in force.

September 30th, 2018 (extended to 31st October 2018)
(ii) in the case of an assessee who is required to furnish a report referred to in section 92E. November 30th, 2018
(iii) in the case of any other assessee. August 31st, 2018

BELATED RETURN [SECTION 139(4)]

  • Any person who has not furnished a return within the time allowed to him under section 139(1) may furnish the return for any previous year at any time-

(i) before the end of the relevant assessment year  ie. 31 march 2018;or

(ii) before the completion of the assessment, whichever is

  • Thus, belated return can be filed only in case a person has not furnished his return within the time allowed under section 139(1).  Also, the belated return cannot be furnished after the end ofthe relevant assessment

Conclusion:

if any person has not filed the income tax return on or before due date under section 139 (1), so there is last chance to file the belated return under section 139(4) on or before the end of the relevant Assessment year (for example financial year 2017-18 has assessment year 2018-19 so the belated return can be filed on or before 31 march 2019).

After the time is barred, the return cannot be filed and can not be revised forever.

For further clarification and professional assistance, feel free to contact at sandeeprawatca@gmail.com

Author Bio

Qualification: CA in Job / Business
Company: SRT Consultancy & Company
Location: NEW DELHI, New Delhi, IN
Member Since: 14 Jul 2018 | Total Posts: 15
Mr. Sandeep Rawat brings more than 5 years of broad and progressive experience as a strategic business partner in addition to being an expert in taxation.he has vast experience in conducting financial audits and tax planning of government corporations, private industries, foreign companies, NGOs, ba View Full Profile

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