1. The Central Board of Direct Taxes (CBDT). Vide circular no. 08/2021 dated 30 April 2021 has extended the time limit of filing belated Income Tax Return for the financial year 2019-20 (assessment year 2020-21) to 31 May 2021.
1.1 Normally, Income Tax Returns for a financial year have to be filed by 31 July of the following financial year.
1.2 The belated or revised returns can be filed before the end of the assessment year or before the completion of the assessment whichever is earlier. Thus, the belated and revised ITRs can be filed voluntarily after the normal deadline, up to 31 March of the assessment year. If the March deadline is missed then the taxpayer cannot voluntarily file ITR. In such a case, the ITR can only be filed in response to a notice from the Tax department.
1.3 In view of the current Covid-19 pandemic, The CBDT provided relief to taxpayers. Now the last date to file belated ITR for the financial year 2019-20 (the assessment year 2020-21) has been extended to 31 May 2021.
2. STATUTORY PROVISIONS: – Section 139(4) & (5) of the Act contain provisions relating to the filing of belated and revised returns of income respectively.
3. BELATED RETURN: Belated return (Return under section 139(4)) simply means the filing of income tax return after the due date or extended due date. Belated return can also be called as a late return or delayed return.
3.1 If an individual taxpayer does not file an original tax return before the due date i.e., 31 July (unless extended by the government), or within the time allowed under a notice issued by an assessing officer, he still has the option to file the tax return as belated ITR by 31st March of the Assessment Year.
4. REVISED RETURN: Revised return is a return which is filed u/s 139(5) as revision for the original return. It is a revision for any omission or mistake made in the filing of that original return.
4.1 Revised Income Tax return is filed by an individual in case any mistake is discovered after the filing of original tax return such as the omission of interest income, bank account, etc. Deductions or exemptions wrongly claimed and incorrect disclosure of income can be fixed by filing this return.
4.2 The revised return is also filed when the taxpayer receives an Intimation or Notice from the department for a higher Tax demand, which he agrees to. Once the revised return is filed, the original ITR stands withdrawn.
4.3 The revised return should be filed before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
4.4 For FY 2019-20 (AY 20-21), the last date for filing a revised return was anytime on or before March 31, 2021, which is the end of that assessment year. (now extended to 31st May 2021). If the I-T Department finishes the assessment (scrutiny assessment or best judgment assessment) before that, the same would be the last day to revise the return.
4.5 A revised return can be filed even for belated returns filed by a taxpayer after 31 July (10 Jan 2021 for FY 2019-20) of any financial year.
4.6 There’s no limit on the number of times, a taxpayer can revise his tax return if it is done within the deadline. However, it is recommended to use the option sparingly as multiple revisions could lead to scrutiny by the I-T Department, which may lead to tax notices to substantiate the income and delay in processing the returns.
5. RECTIFICATION OF RETURN: Revision of IT returns is different from rectification. Unlike revisions, rectification should be made only after receiving intimation from the Central Processing Centre (CPC) of the I-T Department.
5.1 The order for rectification is issued by the department on noticing any discrepancy or in response to a rectification request filed by the taxpayer. Cases requiring rectification include arithmetic mistakes, incorrect gender, advance tax disparity, and mismatch in tax credit. Under rectification, the taxpayer cannot claim new exemptions or deductions or show new income. These changes can be made only using the revision of return.
6. STEP BY STEP GUIDE TO FILE REVISED/ BELATED RETURN
(a) Login to e- filing portal www.incometaxindiaefiling.gov.in
(b) Click on the e-file menu and click Income Tax Return Link
(c ) The following screen will be displayed. Select filing type as Original/ Revised Return.
(d) In Part A, General Information Tab, choose the return filing section as “Revised Return under section 139(5). For filing the revised return, the only requirement is to have the acknowledgment number and the date of filing of the original return.
(e) Enter the Acknowledge Number & Date of filing of the original return filed. It is mandatory to enter a 15 digit Acknowledge number while filing the revised return online.
(f) Fill or correct the relevant details of the online ITR Form displayed and submit the ITR.
(g) Make sure to verify the return, without which the revised return will not be accepted by the Department. E verify the return for faster processing and quicker return
(h) If the revision leads to additional tax payable, pay the self-assessment tax.
i) In case of a refund, intimation under Section 143 (1) will be issued in due course of time.
7. LATE FEE AND PENALTY: The extension of the timeline for filing belated/revised returns will not provide relief to the taxpayer against applicable penalty & interest. The applicable penalty & interest for FY 2019-20 is as indicated below: –
(a) Return filed on or before the due date – 10th January 2021 (15th February for audit and transfer pricing cases)– NIL
(b) Returns filed after 10th January 2021.- Rs 10000/-
(c) As a relief to small taxpayers for total income less than Rs 5, Lakhs the maximum penalty levied for delay will only be Rs 1000.
(d) In addition to this [email protected] 1% per month is also to be levied under section 234 for delayed return and outstanding interest amount.
8. AMENDMENT FOR FY 2021-22 (AY 2022-23): The deadline for filing belated, revised ITR is reduced by three months from 31 March of the relevant assessment year to 31 Dec of the assessment year. The last date for voluntarily filing the ITR for the current financial year, i.e., FY 2020-21 will be 31 Dec 31. This means that taxpayers get 3 months less to file belated, revised ITRs which is the last chance to file an ITR voluntarily.
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