Now you can regularise your past I-T returns till this date
The CBDT circular extending the timeline for verification of all previous years' ITRs is a well-structured move by the government as it is doing its every bit to ease the cash flow for citizens
- Aug 5, 2020,
- Updated Aug 5, 2020 5:39 PM IST
In India, each taxpayer needs to file their income-tax return (ITR) for every financial year. Section 139 of the Income Tax Act 1961 has laid down procedures and processes for filing the returns. Wherein, an individual needs to verify their ITR through e-filing generated confirmation called ITR-V within 120 days from the date of filing.
If the ITR is not verified through any mode as mentioned below within the given time, then it will be treated as an Invalid ITR and it will be construed as if the return is not filed at all. Hence, taxpayers need to file it again and all consequences of non-filing of ITR are applicable to taxpayers.
To give an example, an assessee had filed an ITR for FY 2016-17 before July 31, 2017, with a refund amount in that income tax. The assessee was not able to verify the return before November 2017.
The consequences of this non-verification are - the return was not verified; hence it was not eligible for processing. Since the return was not processed, the intimation for processing could not be issued and the refund was not ascertained by the department.
The assessee was not able to receive back his due refunds and was also looking at the interest on the same. Now with CBDT's circular, the assessee can verify the return again and get back his due refund and that too with interest.
This is the last window given by the government to clear all pending unverified returns for the last 5 years. There must be some taxpayers who have refunds but have not revived them (refunds) because they had not verified the ITR within the stipulated time of 120 days, here by adhering to the circular they will get their due refunds as well the interest.
On the other hand, a taxpayer who has filed his/her ITR with payment of interest and has not verified his/her return within the stipulated period will get a respite of compounding effect. Otherwise, he/she would have to pay interest for the complete delayed period and would be forced to file an original ITR.
(The author is Founder & Chairman, HostBooks Ltd)
In India, each taxpayer needs to file their income-tax return (ITR) for every financial year. Section 139 of the Income Tax Act 1961 has laid down procedures and processes for filing the returns. Wherein, an individual needs to verify their ITR through e-filing generated confirmation called ITR-V within 120 days from the date of filing.
If the ITR is not verified through any mode as mentioned below within the given time, then it will be treated as an Invalid ITR and it will be construed as if the return is not filed at all. Hence, taxpayers need to file it again and all consequences of non-filing of ITR are applicable to taxpayers.
To give an example, an assessee had filed an ITR for FY 2016-17 before July 31, 2017, with a refund amount in that income tax. The assessee was not able to verify the return before November 2017.
The consequences of this non-verification are - the return was not verified; hence it was not eligible for processing. Since the return was not processed, the intimation for processing could not be issued and the refund was not ascertained by the department.
The assessee was not able to receive back his due refunds and was also looking at the interest on the same. Now with CBDT's circular, the assessee can verify the return again and get back his due refund and that too with interest.
This is the last window given by the government to clear all pending unverified returns for the last 5 years. There must be some taxpayers who have refunds but have not revived them (refunds) because they had not verified the ITR within the stipulated time of 120 days, here by adhering to the circular they will get their due refunds as well the interest.
On the other hand, a taxpayer who has filed his/her ITR with payment of interest and has not verified his/her return within the stipulated period will get a respite of compounding effect. Otherwise, he/she would have to pay interest for the complete delayed period and would be forced to file an original ITR.
(The author is Founder & Chairman, HostBooks Ltd)