Filing your Income Tax Return (ITR) for previous years might seem daunting, but it is a necessary task if you missed the deadline or need to amend your return for earlier financial years. The Income Tax Department allows taxpayers to file returns for past years under certain conditions, and this guide will help you understand the process, requirements, and penalties (if any).
Here’s everything you need to know about filing an income tax return for previous years in India:
What is a Belated Return?
A belated return is a return that you file after the due date for that financial year. The last date for filing ITR for a specific year is usually 31st July of the assessment year, but this date may extend under certain circumstances (such as during a pandemic or if an extension is announced by the government).
If you miss this deadline, you can file a belated return for up to one year after the end of the assessment year. For example, for the financial year 2022-23, the due date for filing the return would typically be 31st July 2023, but if you miss it, you can file the return by 31st December 2024.
Key Points to Know Before Filing a Belated Return
Deadline for Filing a Belated Return: You can file a belated return within 3 years from the end of the relevant assessment year. This means you can file a return for AY 2021-22 (FY 2020-21) until March 31, 2024.
Penalties and Interest:
Late Fee: If you file your return after the due date, you may be charged a late fee of up to ₹5,000 under Section 234F of the Income Tax Act. This fee depends on how late the filing is:
₹1,000 if the total income is up to ₹5 lakh.
₹5,000 if the total income is above ₹5 lakh.
Interest on Late Payment of Tax: If there is any outstanding tax liability, interest under Section 234A will be charged. This interest is calculated at 1% per month from the due date of filing until the date of actual filing.
Refund Claims: You cannot claim a refund for a belated return if the return is filed after the end of the assessment year (i.e., after the 31st March following the end of the financial year).
Revised Return: If you discover any mistakes or omissions in the return after filing, you can file a revised return within 3 months from the end of the assessment year.
Steps to File Income Tax Return for Previous Years (Belated Return)
Step 1: Gather Necessary Documents
Before filing a belated return, ensure that you have all the documents from the year in question:
Form 16/16A: Salary certificate, showing tax deducted at source (TDS).
Bank Statements: To check interest earned and other income details.
Investment Details: Proof of any investments for claiming deductions (Section 80C, 80D, etc.).
Capital Gains Reports: If applicable, reports from brokers regarding capital gains on the sale of shares, mutual funds, or property.
Other Income Sources: Rental income, business income, or any other sources of income.
Step 2: Log in to the Income Tax e-Filing Portal
Visit the official Income Tax e-filing portal: https://incometaxindiaefiling.gov.in/.
Log in using your PAN as the user ID and your password.
If you haven’t registered yet, create an account by providing your PAN and other necessary details.
Step 3: Select the Correct ITR Form
ITR-1 (Sahaj) for salaried individuals, pensioners, and income from one house property.
ITR-2 for individuals having income from more than one house property, capital gains, etc.
ITR-3 for individuals and Hindu Undivided Families (HUFs) who have business/professional income.
ITR-4 for individuals opting for presumptive taxation.
Make sure you choose the form that corresponds to the income details for the year you are filing.
Step 4: Fill in the Required Details
Income Details: Provide accurate information about your income for the financial year you are filing for.
Deductions: Include details about deductions (Section 80C, 80D, etc.) and exemptions.
Tax Computation: The portal will automatically calculate your tax liability based on the entered data.
Step 5: Calculate and Pay Tax
Self-Assessment Tax: If there is any tax payable, the portal will calculate the tax, and you need to pay it using Challan 280. The tax payment will be reflected in the return.
Interest: If you are filing a belated return, the system will also calculate the interest under Section 234A for the delayed filing.
Step 6: Submit Your Return
Once you have filled in all the required details and made the necessary payments, submit the return on the e-filing portal.
Step 7: E-Verify Your Return
After submission, you must e-verify the return to complete the process. You can do this by:
Aadhaar OTP
Net Banking
EVC (Electronic Verification Code)
Alternatively, you can download the ITR-V (Acknowledgment), sign it, and send it to the Income Tax Department within 120 days of filing the return.
Common Mistakes to Avoid When Filing a Belated Return
Not Including All Sources of Income: Ensure you declare all your income sources, including interest income, capital gains, and income from side businesses.
Miscalculating Tax Payable: Double-check the tax computation, especially the applicable deductions, exemptions, and tax credits.
Not Paying Tax or Late Payment: If you owe any tax, make sure to pay it before filing the return to avoid additional interest or penalties.
Missing Important Documents: Ensure you have all the necessary documents, including bank statements and Form 16/16A, for the correct assessment year.
Filing the Wrong ITR Form: Select the correct ITR form for the specific income type. Filing the wrong form can lead to rejection or delays.
Penalties for Filing Belated Returns
Late Fee under Section 234F: As mentioned earlier, a penalty of up to ₹5,000 can be levied for filing after the due date.
₹1,000 if total income is up to ₹5 lakh.
₹5,000 if total income exceeds ₹5 lakh.
Interest under Sections 234A, 234B, and 234C: Interest will be charged for late payment of taxes as calculated by the system.
Can I File a Belated Return for Previous Years?
Yes, you can file a belated return for past years (up to 3 years from the end of the relevant assessment year). However, the time limit for claiming refunds is one year from the due date of filing for that assessment year, so you will not be able to claim refunds for belated returns filed beyond this time frame.
Conclusion
Filing your income tax return for a previous year is crucial for staying compliant with tax laws, especially if you missed the original deadline. Although there are penalties for filing belated returns, it’s better to file late than never, especially if you owe taxes or need to update your records.
By following the steps outlined in this guide and ensuring that you file the return correctly, you can avoid further complications and penalties. If you are unsure about the process or need assistance with tax computation, consider consulting a tax expert or financial advisor.
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