Does lapsing of the due date means attracting a severe penalty from the department or still there’s hope?
For each financial year, the tax department notifies due dates for submission of the Income-tax return by different taxpayers. Also, an additional 120 days are provided to the taxpayer to verify the return submitted. Persons failing to file the return before the due date or verify the same are either served a notice for submitting a reason for non- filing or filing a delayed return or in certain cases are placed under the jurisdiction of an officer for further investigation of the cause of delay or non-filing.
Yes, the Income Tax department still provides a second hope to the taxpayer to file their due return after the filing period and not for only the past year but for the past 6 years. Issued in the interest of the taxpayer vide Notification No. 09/2015, a standing chance has been provided to the taxpayer to file the tax return even if the taxpayer had not complied with the filing of return within due date for the past 6 years. The said notification came up as a relieving gem which notified that Section 119(2) of Income Tax Act, 1961, a taxpayer is allowed to file a tax return for even the last 6 years.
Recently, vide Circular No. 10/2019 of Central Board of Direct Taxes (CBDT) notified condonation with regard to charitable trusts or institutions, as follows:
- Trusts or institutions which furnished the delayed Form 10 – B, are further required to furnish the Auditor report and have received before the filing of Income Tax Return.
- Failed to submit the Income Tax return for AY 2016-17 & AY 17-18
- All such cases have been condoned.
However, the department also specified the benefit in the Section, with an ‘A criteria’ only complying to which the taxpayer shall be allowed to file the earlier period return.
Step 1: Check Eligibility:
Who shall be allowed to file?
Section 119(2) of Income Tax Act, 1961 with heading as Condonation in the filling of Tax Return shall only permit for filling of a delayed return on fulfilling certain conditions.
The conditions on which the Return shall be allowed to file are:
- The return shall be filed for claiming of a tax refund/exemption/deduction;
- The return shall be filed for carrying forward/set- off of loss;
iii. Such above claims are should be genuine and honest;
- Income is not taxable in the hands of any other person.
- The taxpayer has filed ITR previously but declared invalid by the department (missed verification of return or any other reason) etc.
Step 2: Drafting a Request Application for Condonation for Delay in Filling of Tax Return.
Like in a usual way, an application for the condonation for the delay in filing of tax return has to be submitted by the tax payer by logging in on the Income-tax portal website online. Filling of the request will have proceeded in the following cases:
Case 1: If the taxpayer has submitted the return but not verified it or some other reason. Follow the steps as below to proceed:
- Locate to ‘My Account > Service Request.
- Selecting the Request type as ’ New Request’ and Request Category as ‘ Condonation Request‘.
- Select the reason for delay or non-filling and Click ‘Submit’.
Case 2: If the taxpayer has not submitted any return. Follow the steps as below to proceed:
- Select your applicable Income Tax Return form from the drop-down.
- Fill in your income details
- Select Filed u/s > 119(2)(b) – after condonation of delay
- Submit your ITR.
- Complete the verification of Income Tax Return submitted as the mandatory requirement.
Step 3: Tracking of Condonation Request for Approval and Filing of Return.
Response to the condonation of delay of a tax return by the department can be tracked by the taxpayer by locating as follows in E- Filing portal:
My Account > Service Request > View Request .
Things to Know:
- No specific time limit has been determined for the filling of condonation requests. It can be even filed just after the lapsing of the due date but for a specific assessment year, it has to be filed within 6 years.
- No interest shall be allowed on a belated claim of refunds.
- A condonation request can be filed for a claim of refunds – due to excess tax deducted, collected, excess advance tax paid, excess payment of self-assessment tax and other cases similar thereto.
- If your income is below the exemption limit and failed to file your ITR, no need to file a condonation request as if income is below exemption limit then filling of ITR is not compulsory.
- Whether tax has been paid or not by the taxpayer on the failure of submission of ITR, the taxpayer can still apply condo-nation of delay of return and take approval from the designated jurisdictional tax officer.
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