31 Aug 2019 is over and this was the last date to file Income Tax Returns for FY 2018-19. But what if you missed ITR filing deadline? Late filling of ITR is a serious blunder and let’s see how this can be tackled?

Also, if you have filled, your wait for verification of ITR, revision & Refunds has started.

Here is a FAQ if you missed filling returns or if you made mistake in the ITR or facing refund-related or other problems like revision & verification of ITR or revising ITR.

Late Filing of ITR- FAQs if you missed IT filling date, refunds & verification of Income Tax Returns

Q: What happens if you miss the ITR filing deadline?

Ans: Till recently (AY 2017-18) there was nil penalty for filing late income tax returns. But now there is a penalty of up to Rs 10,000 for Late Filing of ITR. This is as per Sec 234F of Income Tax Act.

Explanations:

• The penalty will be Rs 5000 if the tax return for the financial year 2018-19 is filed after the return filing deadline (i.e., Aug 31, 2019) but before December 31, 2019.
• This will increase to Rs 10,000, if the tax return is filed on or after January 1, 2019.
• In case the Total Income is less than Rs 5 Lakhs, the penalty will not exceed Rs 1000 in any case.
• Also, if there is unpaid tax, the penal interest will also be charged on the due tax.

Q: So do I lose anything (apart from a penalty) due to Late Filing of ITR?

Ans: Yes, for late returns you cannot claim losses under any head of income except one – Loss on House Property (Interest on Housing Loan). You know the losses can be used to set off for the next 8 years gain. So you will lose out any such opportunity if you file late returns.

Q.  Is there any prosecution if I don’t file ITR?

Yes, there are provisions. After serving notice the IT Department can file for prosecution for 3 months to 2 years. In case the if tax is more than Rs 25 lakhs, the jail term can extend up to 7 years.

Q: How to file a Late Return?

Ans: Same way Online. This time you have to select “Return filed under section 139(4)”.

Q: Can a Belated Return be revised?

Ans: Yes. It is allowed until the end of that financial year. So till 31 March 2019, the belated returns can be revised or modified.

Q: What is the deadline of revising the ITR?

Ans: The deadline to revise ITR is defined under Section 139(5). It states that:

One can furnish a revised return any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

Assessment year is the year immediately following the financial year for which the return is filed.

So for the FY 2018-19, the deadline will be 31 March 2021. This is almost 2 years of time.

Q: How many times an ITR can be revised?

Ans: No Limit. You can revise any number of times.

Q How can I verify my ITR?

Ans: One gets 120 days to verify the ITR.

There are 6 ways to verify ITR. Five of these are online & sixth is offline. These are listed here:

https://www.incometaxindiaefiling.gov.in/EVC/?lang=eng

The best 2 ways are:

If your Aadhar is linked, you can verify using OTP.

Take a printout, sign and send to the address mentioned in the ITR acknowledgment. Send by normal post or speed post only. Do not send by courier services.

Q: What if forget to Verify ITR?

Ans: As you get 120 days, the IT department will send you reminder emails and SMS to verify. But in case miss the 120 day period, the return will be treated as invalid and you need to file it again by paying the penalty as mentioned above.

In case you have a genuine reason for not verifying it you can file a request. This is called a “condonation delay request”. This request is also online and tax authorities may grant you extra time.

Q: How much time it takes for the IT refund?

Ans: If your ITR is accepted, you will receive an SMS and email under Sec 143 (1). After this, it may take 7-21 days for the refund to hit your bank account. So the best way is to file on or before time, verify it, and get a refund soon.

Q: How to check IT refund status?

Ans: You can check online using the IT website login. Against every Year ITR Acknowledgement, there is information regarding payment or pending refunds.

One can also check it on TIN NSDL Website using his PAN. The link for the website: https://tin.tin.nsdl.com/oltas/refundstatuslogin.html

You may also contact CPC at 1800 180 1961 / 1800 1034455 / +91 80 46605200. Email: refunds@incometaxindia.gov.in.

Q: How long should one keep Income Tax Documents & records?

Ans: It is prescribed that you have to keep records for last 7 financial years. It is not recommended by income tax directly but they have mentioned indirectly by saying that an assessee can be asked or scrutinize for last 7 years records.

In case one has assets in any foreign country or business in a foreign country this time frame is 17 years.

We recommend you to keep them forever in physical or digital form.

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