What if you forget to verify your Income Tax Return?

3
610
Income Tax Return

What if you forget to verify your Income Tax Return?

Have you filed your ITR and forget to verify it? Not a big issue, “it’s never too late”. You still have a time to get it verified and complete your ITR filing.

Filing of Income Tax returns on time is not only a moral and financial obligation but also a way to ensure optimum financial health. And Filing Income Tax return contains two basic components of ITR filing and ITR verification. Filing of the ITR must be done within the time frame as per the prescribed procedure each year. For example, for the Assessment Year (AY) 2017-18, the last date for filing ITR was 31st July, 2017 which was later extended till 5th August, 2017.

However, even if you have filed your ITR on time within the stipulated date but have not sent the same for verification, your ITR filing process remains incomplete. All filed ITRs must be verified within 120 days of filing, failing which the ITR is considered to be invalid.

What if you failed to file your ITR completely on due date?

If you missed the ITR filing deadline completely, you can still file a belated ITR before 31st March, 2018 for the A.Y. 2017-18 by choosing “ return filed under section 139(4)” option for a belated ITR. Once submitted you can either opt for e-verification or for physical verification process by sending a copy of your ITR to Central Processing Centre (CPC) at Bengaluru within 120 days of filing your belated return.

What if you filed your ITR but failed to verify the ITR?

If you have filed your ITR on time but have not been able to verify the same, either through e-verification or by physical mode, it is considered as invalid by the income tax department. But, don’t worry, there is still a hope. You can either choose to submit a belated ITR or request the ITR department for e-verification using Condonation delay request”.

Condonation delay request will work only if you have genuine reason for not being able to verify your submitted ITR within 120 days post submission. Another pre-requisite for filing Condonation delay request is that the income for which the ITR is filed must not be assessable in the hands of any another individual.

Steps involved in filing a Condonation delay request:

Step-1: Login to e-filing website of income tax department http://incometaxindiaefiling.gov.in

Step-2: Under ‘My Account’ tab, select ‘Service Request’ option from the drop down menu.

Step-3: In the ‘Request Type’ tab choose a new request. And in the request category choose ‘Condonation delay request’ from the drop down menu.

Step-4: Choose the relevant ITR and AY and choose the reason for delay from the menu.

Step-5: After submitting the Condonation delay request, you need to check the status of your request periodically. In order to know the acceptance or denial of your service request.

So, being a responsible citizen, file your ITR on time. And do send for verification and contribute your hands in Nation Building.

-SHIVANI KHANDELWAL


About Author

Shivani khandelwal

 

Name: Shivani Khandelwal

Author is a CA Final student, now currently associated with M/s SSRPN. & Co., As Article Assistant.

 

 

 


3 COMMENTS

  1. I have partnership firm . I had not filed my return for FY 16-17. On FY 15-16 I had filed return with lose of 5 lac . I had audited the balance sheet. Now my total sale is 20 lac. Now how can I file return with flat 8% profit and what will be my tax liability

    • As per Sec 72(3) of Income Tax Act, business loss can be carried forward for 8 assessment years immediately succeeding the assessment year for which the loss was first computed, provided you have filed your IT return within due date.
      So, if you have arrived at a loss from PGBP in FY- 2015-16, it can be carried forward and set-off against PGBP income upto next 8 Years. Your tax laibility for FY. 2016-17 will be nil. (Income for FY. 2016-17=Rs. 1,60,000 (20,00,000*8%)-Losses carried forward=1,60,000).Balance loss of Rs. 3,40,000 will be carried forward to next year for set-off.

  2. Opinion:

    [By CA Naresh Jakhotia, Nagpur- Author at https://www.thetaxtalk.com ]

    Its a very interesting issue raised by you as section 44AD is amended by the FA 2016 so as to provide that the benefit of section 44AD cannot be availed by the taxpayer for the next 5 years if they have opted out of it in anyone of the year.

    Before replying to interesting issues in your query, first let us understand the law.

    Section 44AD reads as under:

    Special provision for computing profits and gains of business on presumptive basis.

    44AD. (1) Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an eligible assessee engaged in an eligible business, a sum equal to eight per cent of the total turnover or gross receipts of the assessee in the previous year on account of such business or, as the case may be, a sum higher than the aforesaid sum claimed to have been earned by the eligible assessee, shall be deemed to be the profits and gains of such business chargeable to tax under the head “Profits and gains of business or profession” :

    [Provided that this sub-section shall have effect as if for the words “eight per cent”, the words “six per cent” had been substituted, in respect of the amount of total turnover or gross receipts which is received by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account during the previous year or before the due date specified in sub-section (1) of section 139 in respect of that previous year.]

    (2) Any deduction allowable under the provisions of sections 30 to 38 shall, for the purposes of sub-section (1), be deemed to have been already given full effect to and no further deduction under those sections shall be allowed.

    (3) The written down value of any asset of an eligible business shall be deemed to have been calculated as if the eligible assessee had claimed and had been actually allowed the deduction in respect of the depreciation for each of the relevant assessment years.

    [(4) Where an eligible assessee declares profit for any previous year in accordance with the provisions of this section and he declares profit for any of the five assessment years relevant to the previous year succeeding such previous year not in accordance with the provisions of sub-section (1), he shall not be eligible to claim the benefit of the provisions of this section for five assessment years subsequent to the assessment year relevant to the previous year in which the profit has not been declared in accordance with the provisions of sub-section (1).

    (5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee to whom the provisions of sub-section (4) are applicable and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.]

    (6) The provisions of this section, notwithstanding anything contained in the foregoing provisions, shall not apply to—

    (i) a person carrying on profession as referred to in sub-section (1) of section 44AA;

    (ii) a person earning income in the nature of commission or brokerage; or

    (iii) a person carrying on any agency business.

    Explanation.—For the purposes of this section,—

    (a) “eligible assessee” means,—

    (i) an individual, Hindu undivided family or a partnership firm, who is a resident, but not a limited liability partnership firm as defined under clause (n) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009); and

    (ii) who has not claimed deduction under any of the sections 10A, 10AA, 10B, 10BA or deduction under any provisions of Chapter VIA under the heading “C. – Deductions in respect of certain incomes” in the relevant assessment year;

    (b) “eligible business” means,—

    (i) any business except the business of plying, hiring or leasing goods carriages referred to in section 44AE; and

    (ii) whose total turnover or gross receipts in the previous year does not exceed an amount of [two crore rupees].

    Sub. by Act No. 28 of 2016, (w.e.f. 1-4-2017).
    The relevant part of section 44AD which bars the benefit of section 44AD is as under:

    (4) Where an eligible assessee declares profit for any previous year in accordance with the provisions of this section and he declares profit for any of the five assessment years relevant to the previous year succeeding such previous year not in accordance with the provisions of sub-section (1), he shall not be eligible to claim the benefit of the provisions of this section for five assessment years subsequent to the assessment year relevant to the previous year in which the profit has not been declared in accordance with the provisions of sub-section (1).

    Effectively, going by the word of amended section 44AD, prima facie it can be said that anyone have opted out of section section 44AD in FY 2016-17 cannot opt back in for the next 5 years.

    Now, comes an interesting issues.

    You have mentioned that you were having loss in FY 2015-16. Since loss was there, you were not covered by the provision of section 44AD. Read again, section 44AD which says that Section 44AD applies only if the income exceeds the basic exemption limit. The relevant part is reproduced here under:

    Section 44AD

    (5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee to whom the provisions of sub-section (4) are applicable and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.]

    In short, even though, you have carried out the audit u/s 44AD, it is done so voluntarily and not by compulsion and not by virtue of section 44AD. The audit report is filed by you voluntarily and not by any legal backing.

    In our considered opinion, by virtue of above conclusions, you can still opt for section 44AD as it is not in violation of law.

LEAVE A REPLY

Please enter your comment!
Please enter your name here