Missed ITR filing – Still you can file income tax return of previous years


Missed IT filing - Still you can file income tax return of previous yearsMissed ITR filing – Still you can file income tax return of previous years

We all were under severe pressure to close the income tax returns filing. Servers were not working and Form-16’s were delayed. Several individuals would have missed to file IT returns. Do you know that you can still file IT returns of previous years?

Also Read: How to file income tax rectification online

What is the normal deadline to file ITR?

Generally Income tax return (ITR) should be filed by 31st July every year. This year it was extended up to 5th August, 2013 due to technical issues and several tax payers were not able to access income tax site.

Missed IT filing – Can we still file income tax returns of previous years?


Yes you can still file the IT returns up to 2 financial years i.e. you can file IT return even after the expiry date of the IT Return. Means for Financial year ending Mar-2013 which is FY 2012-13 (Assessment year 2013-14), you can file IT returns up to Mar-2015 with certain conditions.

Things to know before filing income tax returns of previous years

  1. Capital losses cannot be carry forwarded unless they are specified by 31-Jul and filed income tax return. Exemption to this is you can still carry forward the loss on sale of house property.
  2. You can file IT Return within one financial year without any fine or penalty
  3. You can file IT return after one year, but within two financial years, with a fine of Rs 5,000
  4. Penalty interest of 1% per month (simple interest) would be applicable on tax dues and not paid before due date (31-Jul normally, but this year, it is 5-Aug).
  5. Interest of 1% per month needs to be paid for non-payment of advance tax (due of over Rs 10,000 TDS)
  6. You can still claim income tax refund even after late filing. Delay in IT filing would delay your income tax refund and there would not be any interest on such refund.

What precautions should be taken before filing IT returns for previous years?

Since you have already delayed filing IT returns of previous years, it is better to take some precautions before you proceed for filing IT returns.

  • Get Form-16 and TRACES (Form 26AS) documents ready
  • Generally we tend to ignore Bank FD interest. Approach your bank and get all interest paid for your bank FD or RD. Any TDS deducted would anyhow include in your TRACES document. Compute the interest payable on Bank FD as it would be based on your income tax slab and bank would have deducted only 10% of interest paid as TDS.
  • Review your last year IT Return so that any carry forward of losses can be easily off-set.
  • Consider all deductions about 80C or any donations etc.
  • The process to file ITR for previous year is same as normal ITR filing. (How to file ITR online in India)
  • Make the balance tax payment along with interest (if any) and proceed for ITR filing.
  • It would be better to take a tax professional help in filing such previous year IT Return so that you would not miss or mess anything.

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Suresh
Missed IT filing – Still you can file income tax return of previous years


Article by Suresh

Suresh KP i.e. me have written 400+ articles on this blog. I love doing analysis and identifying the Best investment options.

7 Comments

  1. Karthick says:

    Hi,

    I'm a pvt sector employee and have missed to file tax for the financial year 2006-07 (AY 2007-08). I still have my form16 and other required documents. It seems I also have a considerable tax refund for that ITR. 

    What are the options do I have to fill the returns ?

  2. kathait says:

    Sir I am govt employee. In fy 2011-12 I have total income around 321000 in witch about 52000 home loan interest witch I deduct from total salary and then calculate IT for the remaining amount. But I cant fill any ITR for the year. Now IT department call me yesterday that I cant pay full tax liability for the amount of 321000 (about 5000 less). And pay immediately such amont through chalan.
    What can I do now.

    • Suresh KP says:

      Kathait, Since you have not filed ITR for FY 2011-12, IT dept has every right to penalise you. Please consult a tax professional and prepare a case and approach your IT Officer. If you can prove that there is no tax liability, IT office may excuse you and may give penalty of RS 5,000 and ask you to file ITR for that year.

  3. k.nagarajan says:

    Dear Sir,

    I am pvt sector employee. I have filled the return first time for year 2012-13 successfully but later I was asked in a show cause notice from IT dept. for previous years returns also which I had not filled for 2009-10, 2010-11, 2011-12.

    For such years, I have filled (using form 16) online on 23-09-2013 which were not processed. Now  the status is showing as- ITR transferred out of CPC to jurisdiction officer in income tax office. May I be panelised ? and  what can I do ?

    You are requested to pls guide me.

    • Suresh says:

      Hi Nagarajan, In case you have taxable income, but not file income tax return for previous year you would be penalised for fine of Rs 5,000 and interest on tax at 2% per month. Please meet the jurisdiction officer. However if you do not have taxable income, you can appeal to jurisdiction officer and provde necessary documents of form-16 etc., You may or may not be penalised in such case.

      • k.nagarajan says:

        Dear sir,

        Thanks for your kind suggestion.

        My problem is that I had taxable income in all such above mentioned previous years and the amount of tax payable was already paid through the employer and I have all the form 16 for those years.The mistake on my part is that I did not file the return which is inadvertantly too.In such a case – How may I find any way out to avoid penalty? and What should I do?

        I would be very much thankful to you…pls guide me in this regard…

         

        • Suresh says:

          Nagarajan, Since there is no tax liability, you may or may not be levied with penalty. My suggestion is to consult a tax consultant in your area and proceed for previous year filings

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