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Return of income is a form used for detailing the income and taxes paid on the income and reporting the same to the government. For the purpose of income tax, there are mainly three types of returns which can be filed:
Through this article, we will help you understand more about the aforesaid returns and the difference between them.
1. Who is Liable to File a Return?
An individual below 60 years of age, who has a total income of Rs. 2.5 lakhs or more in a financial year is liable to file an income tax return. For a senior citizen (aged 60 years or more) and for a very senior citizen (aged 80 years or more) this income limit gets increased to Rs. 3,00,000 and Rs. 5,00,000 respectively for filing a return of income.
Companies and partnership firms are mandatorily supposed to file their returns even in case they have a loss.
To know more, you may visit the ClearTax page.
2. What are the Due Dates for Various Returns?
| Status |
Due Date |
Due date for filing Income tax return for all assessees except :
- Companies
- Non-Companies whose books are required to be audited
- Working partner of a firm whose accounts are required to be audited
|
31st July of the following year i.e. 31 July of the Assessment Year (AY) |
Due date for filing Income tax return for the following assessees:
- Companies not requiring transfer pricing report
- Non-Companies Whose books are required to be audited
|
30th September of the following year i.e. 30 September of the AY |
Due date for filing Income tax return for the following assessees:
- Companies requiring transfer pricing report
|
30th November of the following Year i.e. 30 November of the AY |
3. What is an Original Return?
A valid return filed within the due dates specified in the above table is called an original return.
4. What is a Revised Return?
When an assessee successfully files his return but subsequently realises he has either missed some information or has not disclosed the information completely or any other reason for which he wishes to file his return again, is known as a revised return. The due date for filing the revised return is before the end of the relevant assessment year.
Example:
Roshan has successfully filed his return of income on 10th July 2018.
Scenario 1:
On 15th July 2018, he realised he has not disclosed his bank account details correctly. He files his return on 18th July 2018 after rectification.
His revised return will override his original return. For all purposes, his revised return acknowledgement will be considered.
Scenario 2:
On 1st August 2018, he realised he has not disclosed his bank account details correctly. He files his return on 2nd August 2018 after rectification.
His revised return will override his original return. For all purposes, his revised return acknowledgement will be considered.
Scenario 3:
For FY 2017-18, Roshan can file a revised return anytime on or before 31st March 2019
Points to keep in mind while filing a revised return:
- ITR form can be changed while revising of return.
- No penalty can be levied by the department for bonafide mistakes (unintentional)
- If the assessing officer discovers that the error/ omission was intentional/fraudulent return revision of return is not allowed and penalty may be levied.
- Interest under section 234B and 234C will be recalculated under every revised return.
- If the taxpayer has revised return after the survey/search and it was has found that the mistake in the original return was not bonafide then levy of penalty is justified.
5. What is a Belated Return?
An assessee does not file his return within the timelines prescribed in the income tax act but files it after the due date is referred to as a belated return. The due date for filing a belated return is on or before the end of the relevant assessment year.
Example: Ram has a taxable income of Rs. 7,00,000 from salary in AY 2019-20. He files his return on 5th September 2019. His due date to file the return is 31st August 2019. Since he has filed it on 5th September 2019 it is a belated return. Ram can file his belated return anytime until 31st March 2020.
6. What are the Consequences if There is A Delay in Filing Your Return?
Delay in filing your return, has its own set of disadvantages:
1. Loss under head capital gain and business and profession will not be allowed to be carried forward;
2. The assessee will be liable to pay interest under section 234A depending upon the amount of tax due to @1% per month;
3. The income tax officer may levy a penalty under section 271F for late filing of return up to Rs.10,000. However, if taxable income is below 5,00,000 penalty will not exceed 1,000.
4. In case the assessee is eligible for a refund, the tax department pays an interest under Section 244A, a portion of which will be lost due to the late filing of return.
If you have missed the due date to file your return, you can still file it before 31 Dec 2019 by paying a fee of Rs 5,000. If you are filing after 31 December 2019, you will have to pay a fee of Rs 10,000. Also to note that the time limit for filing a return late for FY 2018-19expires on 31 March 2020.
