Miss the Tax Deadlines: Don’t Worry You can file the Income tax return till March, 2011

Miss the Tax Deadlines: Don’t Worry You can file the Income tax return till March, 2011

Tax returns are a primary issue for every individual and every individual who is liable to pay tax on income must file their return for the financial year 2009-10 before 31st July, 2010. However, the date has been extended to 4th August, 2010 on the ground of few technical hitches that are being currently faced by the department and the people for e-filing; the problem of poor weather conditions in some places has also added a cause for the extension. The extension was declared by the Central Board of Direct Taxes (CBDT) in a contemporary press conference. The announcement has relieved many tax payers who were unable to file return on time and have an opportunity to rectify their mistakes, but still if one is unable to file his return on time, he has an option to pay his returns till March 2011 provided he complies with certain conditions and pays penalties.

Belated Tax Return:
If an assessee fails to submit the return of income-
Within the time allowed under section 139(1), or
Within the time specified in the notice issued under section 142 (1),
He may submit a return (known as belated return) after the expiry of the said period. But the furnishing must be before the expiry of one year from the end of the relevant assessment year or before the completion of assessment, whichever is earlier. So, in our case one can easily file his return n belated basis by March 2011, but penalty in such a case needs to be paid.
Consequences:

Even if filling of belated return is permitted by the Income Tax Act, the following shall be applicable:

If the return is not furnished on or before the due date as specified under section 139 (1), interest under section 234A will be charged.

If belated return is submitted after the end of the relevant assessment year, penalty of Rs. 5, 000 under section 271F will be imposed.

In case of submission of belated return certain losses cannot be carried forward for set off.

Deduction under section 10A, 10B, 80-IA, 80-IAB, 80-IB and 80-IC will not be available if belated return is submitted.

Revised returns: When an assessee files his returns timely but later on discovers some mistakes in the return filed, he submits a revised return to the Department. The assessee may furnish the revised return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment year, whichever is earlier.

Defective returns: If the assessing officer considers the return of income furnished by the assessee is defective, he may intimate the defect to the assessee and give him the opportunity to rectify the defect within 15 days from the date of such intimation or within such period as the Assessing Officer may allow on an application made by the assessee.

Thus, from the above explanation me can make a clear judgment that one can file a return of his current year in the next year provided he pays penalty and complies with the requirements but it shall be remembered that once belated return is filed the option for a revised return is closed and the assessee must ensure that his belated return is true and posts a fair view.