FILING OF INCOME TAX RETURN AFTER THE DUE DATE I.E. AFTER 05.08.2017

FILING OF INCOME TAX RETURN AFTER THE DUE DATE I.E. AFTER 05.08.2017

Now that the last date for filing IT return is over. (i.e. 05.08.2017).  Even now it is not late to file your return, if you have not done so.    You can re-file your return with 10E (if you have filed within the due date) and get refund.

This article is published for the benefit of those who missed to file knowingly or unknowingly.  It is better to know the consequences for not filing tax return and the conditions for filing revised return.

If you are affected, please read this article carefully, and contact Exwel Trust if you want any help in this regard.

NOT FILING RETURN WITHIN THE TIME ALLOWED:

When an individual has not filed the return within the time allowed u/s 139(1), he can file Belated  Return u/s 139(4).

A belated return can be filed before the end of relevant Assessment year.  The present case it is 31.3.2018.

CONSEQUENCES FOR NOT FILING WITHIN DUE DATE U/S 139(1)

(a)    Interest under Sec.234A shall be charged at 1% per month or part there of on the tax payable on self assessment.

(b)   The benefit of carry forward of losses will be lost.

(c)    The right to revise the return of income u/s 139(5) will be lost.

CONSEQUENCES WHEN THE RETURN IS NOT FILED

(a)    When the Assessee is required to file return u/s 139, and the same is not filed before the end of the relevant AY he is liable to pay a penalty of Rs.5000 u/s 271F.

(b)   Best judgment assessment can be made u/s 144.

(c)    Prosecution u/s 276 CC is also attracted in some cases.

CONDITIONS FOR FILING REVISED RETURN U/S 139(5)

(a)    The original return should have been filed within the due date u/s 134(1) or within time limit specified u/s 139(4).

(b)   There  should be an omission or wrong statement in the original return filed.

The revised return shall be filed before the expiry of one year from the end of the relevant AY.

REFILING OF IT RETURN SPECIFIC TO DEFENCE PENSIONERS FOR THE AY 2017-18

This is the first time that almost 90% of the defence pensioners have been taxed due to the payment of delinking arrears, OROP arrears and 7 CPC arrears.

1.      For example a ‘Y” group Naik with 17 years service was paid a total pension (including all arrears) of Rs.3,93,570 and paid a tax of Rs.14,324 as per F.16 instead of Rs.9638 as tax.  After filing IT return with 10E, he got a refund of Rs,9630/-.  If he has not filed IT return with 10E (Relief u/s 89(1) he would not have got any refund.

2.      Same way another ‘Y’ group Naik with 16 years service was paid a total pension of Rs.3,81,980 (as per F.16) and deducted a tax of Rs.26396 wrongly.  (The correct tax amount should have been only Rs.8444)  Both the cases from the same bank. (SBI Sankarankoil)  After filing IT return with 10E he got a refund of Rs.26,400/-.

Read these two examples from a same bank.  For an income of Rs.3,93570, they have charged Rs.14324 as tax instead of Rs.9638, whereas for Rs.3,81,980, the same bank had charged Rs.26,396 as tax instead of Rs.8444 as tax.  (Rs.17,952 excess tax recovered)

These examples show that all these low paid pensioners have been taxed without any basis by the bank. If a proper IT return is filed with 10E, they all will get refund of the tax paid. The Banks have performed badly with respect to the issue of correct Form 16.

Many defence pensioners, have not been guided properly therefore they have paid tax, instead of getting refund.  Many have not filed return at all.  This article is to remind them that they can pay even now.

It shows that the banks deduct excess tax and boldly show on their own F16 and never bother to correct it later.  The innocent pensioners are sufferers.  Nobody is pointing out this mistake and question the bank for issuing such an erroneous Form 16.  We have come across many similar cases.

The only remedy is to file IT return and get refund.  Those who have filed return within the due date without 10E can re-file their return with 10E now and get relief u/s 89(1) and get refund.  You can re-file up to 31.3.2018.  Please read the conditions for refilling and act accordingly.

MANY DEFENCE PENSIONERS HAVE FILED RETURN AND PAID TAX INSTEAD OF GETTING REFUND.  THIS IS AN OPPORTUNITY FOR REFILING & GET REFUND.

Please read the consequences for not filing return and not filing even before the end of relevant AY.  Please read the conditions for filing revised return u/s 139(5) also.

READERS MAY CONTACT EXWEL TRUST FOR ANY HELP IN THIS REGARD

EXWEL TRUST

3D, ST. MARK STREET,

JOHNS HIGH SCHOOL ROAD,

SAMATHANAPURAM,

TIRUNELVELI 627002.

PHONE:0462-2575380.

REMEMBER, BETTER LATE THAN NEVER