July is considered to be the return filing season every year. While most of us behave like responsible citizens and file ITR on time, there are still some people who miss out on the deadline to file ITR due to some reason or the other. Return of income is filed in order to inform the government regarding the taxes paid and information regarding income. There are three types of returns which are filed for the purpose of income tax- Original Return, Revised Return and Belated Return.
Before returns, let us understand who is liable to file a return?
Any individual who is of or below 60 years of age and earns a total income of 2.5 lakhs or above in a given financial year is liable to file an income tax return. The limit has been revised for senior and super senior citizens to 3 lakhs and 5 lakhs respectively for filing a return. ‘
For companies and partnership firms filing returns is compulsory even if they incur a loss.
Types of returns
A return which is filed within the due date or deadline is called an original return. It is advisable to file your returns on time i.e. original returns to avoid any inconveniences.
When an assessee has successfully filed the returns but later on realizes that he happened to miss some information or details or forgot to disclose some information and wishes to file the returns again then in such case the return filed is called a revised return.
You can file a revised return anytime before the end of the given assessment year.
Things to remember while filing revised return
You can change the ITR form while filing revised return
The department cannot levy any penalty for bonafide mistakes
If at any point of the assessment, the assessing officer feels that the wrong information is shared intentionally, the revised return filing will not be allowed and penalty will be levied.
For every revised return, the interest will be calculated as per section 234B and 234C
If the revision of return is done after the survey or search is conducted on the filed returns and the original return is not bonafide then the assessee is due for a penalty.
When an assessee does not file returns on time i.e. by the due date or deadline then the return filed in such case is called belated return. The belated return can be filed anytime during the same assessment year. For the current year, the assessment year ends on 31st March 2020.
What are the consequences of not filing ITR on time?
There are severe consequences of not filing ITR on time.
You will have to pay a Rs. 5000 fee for filing the belated ITR before 31st December. If you miss the December deadline as well, you will have to pay Rs. 10,000 as fee and file the return before 31st March (last day of the assessment year).
Losses incurred under Capital gain, business, profession are not allowed to be carried forward.
You will be liable to pay interest of 1% per month or part thereof under the section 234A.
A penalty of up to Rs. 10,000 can be levied by the assessment officer for late filing ITR. However, if the income is less than Rs. 5,00,000, a maximum of Rs. 1000 can be levied as a penalty.
If you are eligible for a refund, the Income Tax department pays you interest under the section 244A, a portion of which you will lose if you file a late ITR.