Filing and verifying an Income Tax Return (ITR) is not the last procedure in the tax compliance process. Taxpayer must also check if the Income Tax Department has processed their returns, issued refunds, or raised any tax demands. The previous years' ITRs are often required for verifying any existing discrepancies, revising returns, applying for loans and claiming losses as well.
Why do Taxpayers Need Previous Years’ Tax Returns?
The reasons why taxpayers need their previous years’ tax returns are discussed below:
- Verification and Processing: After filing and verifying their ITR, taxpayers have to check if the Income Tax Department has completed verifying their tax return and processing their ITR.
- Check for discrepancies: Upon receiving the intimation under section 143(1) of the Income Tax Department, the taxpayer must check for discrepancies in the tax calculation of the taxpayer and the Income Tax Department, demand or refund status. If there is any demand due, the taxpayers need to respond or pay to the Income Tax Department to avoid penalties.
- Refund Status: The taxpayer has to go through the previous year's ITR to check if the Income Tax Department has processed the refund. The taxpayer who doesn’t receive a refund should check the reasons, such as bank details, inoperative PAN, etc.
- Rectifying mistakes: If the taxpayer wants to revise his ITR, he can correct the mistakes before 3 months from the completion of the assessment year or on or before assessment, whichever is earlier.
- Carry forward of losses: Taxpayers can carry forward their business losses, capital losses, etc., against the income of future years. To find the amount of losses claimed in the previous year, the taxpayer needs to go through the previous year’s ITRs.
- Loan applications: Banks and financial institutions examine the ITRs of previous years to check the borrower's financial stability.
How to Download your Previous Years' ITR?
- Go to the Income Tax Department’s website and login to your account with the credentials.
- Click on 'e-file' tab > Go to ‘Income Tax Returns’> Click on ‘View Filed Returns’
- You can find the income tax returns filed for all the assessment years along with their processing status. You can select the year and click on ‘Download Form’ to download the ITR.