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Liable to interest on tax liability

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How many times and till what date ITR can be revised under Income Tax?

How many times and till what date ITR can be revised under Income Tax?

An income tax return (ITR) is basically a document that is filed as per the provisions of the Income Tax Act, reporting one’s income, profits and losses and other deductions as well as details about tax refund or tax liability. The original due date for submitting ITR for assessment year 2020-2021 relevant to financial year 1st April 2019 to 31st March 2020 was 31st July 2020. However, the same was extended till 31st December 2020 due to pandemic Covid19.

At the time of filing our income tax return (ITR), one takes the utmost care not to make mistakes. However, at times it may happen that taxpayers make a mistake while filing our ITR at the last minute. These could include mentioning the wrong bank account number, forgetting to declare interest income, or claiming the wrong deduction etc. However, the question arises is whether can a person file his ITR again which has been originally filed by that person with some mistakes or omission.

Is filing a revised return allowed under Income Tax Act?

  • A person may furnish a revised return of income under section 139(5).
  • If any person, having furnished a return under section 139(1) or section 139(4), discovers any omission or any wrong statement therein, he may furnish a revised return.

What is the Time Limit for filing revised return?

  • Revised return can be filed at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
  • The word assessment will refer to assessment made under section 143(3) and section 144.
  • Assessment made under section 143(1) will not be treated as assessment for this purpose as such return can be revised even after the intimation under section 143(1) has been served.
  • Also, the return can be revised before the date of passing the order under section 143(3) or section 144 and not till the date of service of such order.

A revised return will substitute an original return

  • Once a revised return is filed, the originally filed return must be taken to have been withdrawn and substituted by the revised return.
  • Thus, where a return was filed under section 139(1) declaring income and later it is revised declaring a loss, the loss shall be allowed to be carried forward as the revised return shall substitute the original return which was filed with in time.
  • Similarly, where a return is filed declaring a loss within the time allowed under section 139(1) and such loss is increased in the revised return, such higher loss will be eligible for being carried forward.
  • Interest under section 234B and 234C will be recalculated under every revised return.
  • If the taxpayer has revised return after the survey/search and it was has found that the mistake in the original return was not bona fide then levy of penalty is justified.

How many times can a taxpayer revise the return?

Theoretically a return can be revised any number of times before the expiry of one year from the end of the assessment year or before assessment by the department is completed; whichever event takes place earlier.

Can a belated return also be revised?

  • When an assessee does not file his return within the timelines prescribed in the income tax act but files it after the due date is referred to as a belated return. The due date for filing a belated return is on or before the end of the relevant assessment year. 
  • With effect from the financial year 2016-17, a belated return can be revised.
  • This was not the case earlier. Only a return that had been originally filed before the due date could be revised for years prior to FY 2016-17.
  • However, it is important to remember the deadline to file belated return and filing the revised return for Financial Year 2019-20 is same i.e. March 31, 2021.
  • Therefore, if you file your belated ITR for Financial Year 2019-20 on March 31, 2021, then taxpayers will not get the opportunity to file the revised return as the deadline for filing the same also expires on March 31, 2021.

Liable to interest on tax liability

  • If you don’t file your ITR, the belated return could lead to extra interest on monthly basis for the remaining tax payable by you.
  • Interest under section 234A is levied for delay in filing the return of income
  • Taxpayer will be liable to pay simple interest at 1% per month or part of a month for delay in filing the return of income from the period commencing on the date immediately following the due date of filing the return of income and ending on the date of furnishing the return of income, or in case where no return has been furnished, on the date of completion of the assessment under section 144.

Liable to pay Late Fees and Penalty

  • The income tax department notified the taxpayers for late filing of tax returns for A.Y. 2020-21, along with a penalty of Rs 5000 (on filing the return after the due date but on or before 31st December) and Rs 10,000 (on the filing of return after 31st December to 31st March).
  • The taxpayer has to file the late filing of tax returns for A.Y. 2020-21 before 31st March anyhow.
  • Penalty is applicable even if the taxpayer files the returns before 31st March while there is no option to file the returns after 31st March 2020.
  • However, if taxpayer’s total income does not exceed Rs 5 lakh, then the maximum penalty levied for delay will not exceed Rs 1000.

It is always considered a prudent action to file one’s income tax return on time. More than any other benefit, being on the right side of law helps. It is recommended to keep the income tax department informed about one’s income and taxability. This communication is only possible when one files their ITR.

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What is the penalty if you file your Income Tax Returns after 31st December 2020?

What is the penalty if you file your Income Tax Returns after 31st December 2020?

An income tax return (ITR) is basically a document that is filed as per the provisions of the Income Tax Act, reporting one’s income, profits and losses and other deductions as well as details about tax refund or tax liability. The deadline for filing Income Tax Return for corporate and other assessee’s who are to get their accounts audited under Income Tax Act 1961 or under any other law for the time being in force is 30th September and for others, it is 31st July every year as have been prescribed under the Act.

However, with the ongoing COVID -19 pandemic a lot of income tax due dates were extended by the Central Government. Individual taxpayers now have until 31st December, 2020 to file their return of income, earned between April 1, 2019 and March 31, 2020. The due date of furnishing the income tax returns for taxpayers whose accounts require to be audited has been extended to 31st January, 2021 

The due date for furnishing of various audit reports under the Act, including the tax audit report and report in respect of international/specified domestic transaction, is extended to 31st December, 2020. The due date for the small taxpayers, or income tax assessee’s with tax liability up to Rs 1 lakh, is 31st January, 2021.

Is there any penalty if one files their income tax returns after the due date?

If a taxpayer fails to the file the income tax return within the prescribed time limit, he would be liable to pay late fees for such default as per provisions of section 234F of the Income Tax Act.

Section 234F gets attracted if the following conditions are satisfied:

  • The assessee is mandatorily required to file the income tax return as per the provision of section 139; and
  • The assessee has either not filed or has delayed in the filing of the said income tax return.

What are the Late Fees and Penalty under Section 243F?

  • The income tax department notified the taxpayers for late filing of tax returns for A.Y. 2020-21, along with a penalty of Rs 5000 (on filing the return after the due date but on or before 31st December) and Rs 10,000 (on the filing of return after 31st December to 31st March).
  • The taxpayer has to file the late filing of tax returns for A.Y. 2020-21 before 31st March anyhow.
  • Penalty is applicable even if the taxpayer files the returns before 31st March while there is no option to file the returns after 31st March 2020.
  • However, if taxpayer’s total income does not exceed Rs 5 lakh, then the maximum penalty levied for delay will not exceed Rs 1000.

What are the other effects of not filing ITR before the due date?

Carry forward of losses not allowed

  • Set off of losses means adjusting the losses against the profit or income of that particular year. After making the appropriate and permissible set offs, there could still be unadjusted losses.
  • These unadjusted losses can be carried forward to future years for adjustments against income of these years.
  • However, unless you file your ITR, you cannot recompense your expenses/losses in the previous financial year to the current.
  • If tax returns are not filed on time, unadjusted losses (with some exceptions) cannot be carried forward to future years.
  • Hence, to ensure that the losses are carried forward for future adjustment, a tax return would be required to be filed

Liable to interest on tax liability

  • If you don’t file your ITR, the belated return could lead to extra interest on monthly basis for the remaining tax payable by you.
  • Interest under section 234A is levied for delay in filing the return of income
  • Taxpayer will be liable to pay simple interest at 1% per month or part of a month for delay in filing the return of income from the period commencing on the date immediately following the due date of filing the return of income and ending on the date of furnishing the return of income, or in case where no return has been furnished, on the date of completion of the assessment under section 144.

Interest on refund u/s 244A may be lost

According to Section 244A, where refund of any amount becomes due to the assessee, he shall, be entitled to receive, in addition to the said amount, simple interest thereon calculated in the following manner, namely:

  1. where the refund is out of any tax paid by way of advance tax or treated as paid, during the financial year immediately preceding the assessment year, such interest shall be calculated at the rate of 1.5% for every month or part of a month comprised in the period from the 1st of April of the assessment year to the date on which the refund is granted
  2. in any other case, such interest shall be calculated at the rate of 1.5% for every month or part of a month comprised in the period or periods from the date or, as the case may be, dates of payment of the tax or penalty to the date on which the refund is granted.

The taxpayer will not be entitled to any interest on refund, if the proceedings resulting in the refund are delayed for the reasons attributable to the taxpayer or the deductor (whether wholly or in part). In such a case, where the taxpayer has not filed ITR on time; interest on refund u/s 244A may be lost as delay in filing is attributable to the taxpayer for the period by which they had filed late return.

Best Judgment Assessment under Section 144

Assessee will be liable for best judgement assessment under Section 144 of the Income Tax Act. According to Section 144, the Assessing Officer, after taking into account all relevant material which he has gathered, is under an obligation to make an assessment of the total income or loss to the best of his judgement and determines the tax payable by the assessee in the following cases:-

  1. where any person fails to make return under Section 139(1) and has not made a return or revised return under Section 139(4) or Belated Return under Section 139(5)
  2. where any person:-
    • fails to comply, with all of the terms of a notice issued under Section 142(1); or
    • fails to comply with directions issued under Section 142(2A) for getting the account audited.
  3. where any person, having made a return, fails to comply with all terms and conditions of a notice issued under Section 143(2)

Liable to receive notice of prosecution under Section 276CC

  • The offence under Section 276CC, prima facie, stood constituted upon failure on the part of the assessee to furnish the return of income for the assessment year in question within the period prescribed in law.
  • A person can be proceeded against for willful failure to furnish ITR under section 276CC of the Income Tax Act.
  • Such proceedings can result in punishment by way of imprisonment and fine.
  • The type of imprisonment and the term of imprisonment is linked to the tax that would have been evaded by such person if the failure had not been deducted.


It is always considered a prudent action to file one’s income tax return on time. More than any other benefit, being on the right side of law helps. It is recommended to keep the income tax department informed about one’s income and taxability. This communication is only possible when one files their ITR.

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What happens if Senior Citizens Missed to file Income Tax Return by 31 December?

What happens if Senior Citizens Missed to file Income Tax Return by 31 December?

In India majority of older persons face financial hardship in old age as most of them are not in a position to earn their livelihood. Their savings, if any, are not enough to meet their day to day, particularly the medical expenses. Older persons with good net-worth value are in search of good short-term financial planning to earn a good income from their finance. The Income Tax law provides various benefits to senior citizens in India with the view to mitigate their issues.

The basic tax exemption limit for normal citizens below 60 years of age is Rs 2.5 lakh in a financial year. But for Senior Citizens, the exemption limit is Rs 3 lakh, while for Very Senior Citizens, the limit is Rs 5 lakh.

So, a Senior Citizen doesn’t have to pay any tax or file ITR in case the annual income is up to Rs 3 lakh and no TDS is deducted during the financial year. Similarly, a Very Senior Citizen is exempted from paying tax and filing ITR if his/her annual income is up to Rs 5 lakh and no TDS is deducted.

Who is considered as a Senior Citizen in India?

According to the law, a senior citizen is an individual resident between the age group of 60 to 80 years, as on the last day of the previous financial year.

Who is considered as a Super Senior Citizen in India?

A super senior citizen is an individual resident who is above 80 years, as on the last day of the previous financial year.

What is the due date for filing ITR for FY 2019-20?

The original due date for submitting ITR for assessment year 2020-2021 relevant to financial year 1st April 2019 to 31st March 2020 was 31st July 2020. However, the same was extended till 31st December 2020 due to pandemic Covid19.

What will happen if Senior Citizens missed to file ITR for FY 2019-20 by 31st December?

In case one fails to submit the ITR by the due date, one can still file it by the last date. Even though the due date for submitting ITR for assessment year 2020-2021 is 31st December 2020, the last date is 31st March 2021.

In case senior citizens fail to submit their current ITR by 31st December 2020, they can still do so by 31st March 2021. However, they may have to face the below mentioned consequences:

Penalty for Late Filing u/s 234F

For returns filed after December 2020, penalty will be Rs 10,000. However, as a relief to small taxpayers, the IT department has stated that if your total income is not more than Rs 5 lakh, the maximum penalty levied for delay will only be Rs 1000.  

Carry forward of losses not allowed

  • Set off of losses means adjusting the losses against the profit or income of that particular year. After making the appropriate and permissible set offs, there could still be unadjusted losses.
  • These unadjusted losses can be carried forward to future years for adjustments against income of these years.
  • However, unless you file your ITR, you cannot recompense your expenses/losses in the previous financial year to the current.
  • If tax returns are not filed on time, unadjusted losses (with some exceptions) cannot be carried forward to future years.
  • Hence, to ensure that the losses are carried forward for future adjustment, a tax return would be required to be filed

Liable to interest on tax liability

  • If you don’t file your ITR, the belated return could lead to extra interest on monthly basis for the remaining tax payable by you.
  • Interest under section 234A is levied for delay in filing the return of income
  • Taxpayer will be liable to pay simple interest at 1% per month or part of a month for delay in filing the return of income from the period commencing on the date immediately following the due date of filing the return of income and ending on the date of furnishing the return of income, or in case where no return has been furnished, on the date of completion of the assessment under section 144.

Liable to pay Late Fees and Penalty

  • The income tax department notified the taxpayers for late filing of tax returns for A.Y. 2020-21, along with a penalty of Rs 5000 (on filing the return after the due date but on or before 31st December) and Rs 10,000 (on the filing of return after 31st December to 31st March).
  • The taxpayer has to file the late filing of tax returns for A.Y. 2020-21 before 31st March anyhow.
  • Penalty is applicable even if the taxpayer files the returns before 31st March while there is no option to file the returns after 31st March 2020.
  • However, if taxpayer’s total income does not exceed Rs 5 lakh, then the maximum penalty levied for delay will not exceed Rs 1000.

Interest on refund u/s 244A may be lost

According to Section 244A, where refund of any amount becomes due to the assessee, he shall, be entitled to receive, in addition to the said amount, simple interest thereon calculated in the following manner, namely:

  1. where the refund is out of any tax paid by way of advance tax or treated as paid, during the financial year immediately preceding the assessment year, such interest shall be calculated at the rate of 1.5% for every month or part of a month comprised in the period from the 1st of April of the assessment year to the date on which the refund is granted
  2. in any other case, such interest shall be calculated at the rate of 1.5% for every month or part of a month comprised in the period or periods from the date or, as the case may be, dates of payment of the tax or penalty to the date on which the refund is granted.

The taxpayer will not be entitled to any interest on refund, if the proceedings resulting in the refund are delayed for the reasons attributable to the taxpayer or the deductor (whether wholly or in part). In such a case, where the taxpayer has not filed ITR on time; interest on refund u/s 244A may be lost as delay in filing is attributable to the taxpayer for the period by which they had filed late return.

Best Judgment Assessment under Section 144

Assessee will be liable for best judgement assessment under Section 144 of the Income Tax Act. According to Section 144, the Assessing Officer, after taking into account all relevant material which he has gathered, is under an obligation to make an assessment of the total income or loss to the best of his judgement and determines the tax payable by the assessee in the following cases:-

  1. where any person fails to make return under Section 139(1) and has not made a return or revised return under Section 139(4) or Belated Return under Section 139(5)
  2. where any person:-
    • fails to comply, with all of the terms of a notice issued under Section 142(1); or
    • fails to comply with directions issued under Section 142(2A) for getting the account audited.
  3. where any person, having made a return, fails to comply with all terms and conditions of a notice issued under Section 143(2)

Liable to receive notice of prosecution under Section 276CC

  • The offence under Section 276CC, prima facie, stood constituted upon failure on the part of the assessee to furnish the return of income for the assessment year in question within the period prescribed in law.
  • A person can be proceeded against for willful failure to furnish ITR under section 276CC of the Income Tax Act.
  • Such proceedings can result in punishment by way of imprisonment and fine.
  • The type of imprisonment and the term of imprisonment is linked to the tax that would have been evaded by such person if the failure had not been deducted.


It is always considered a prudent action to file one’s income tax return on time. More than any other benefit, being on the right side of law helps. It is recommended to keep the income tax department informed about one’s income and taxability. This communication is only possible when one files their ITR.

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Six Consequences if you don’t file your Income Tax Returns by the Due Date

Six Consequences if you don’t file your Income Tax Returns by the Due Date

What happens if you don’t file your Income Tax Returns by the Due Date?

An income tax return (ITR) is basically a document that is filed as per the provisions of the Income Tax Act, reporting one’s income, profits and losses and other deductions as well as details about tax refund or tax liability.

The deadline for filing Income Tax Return for corporate and other assessees who are to get their accounts audited under Income Tax Act 1961 or under any other law for the time being in force is 30th September and for others, it is 31st July every year as have been prescribed under the Act.

However, with the ongoing COVID -19 pandemic a lot of income tax due dates were extended by The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 read with Notification No. 35 /2020, dated 24-06-2020. In view of the same, the due date of furnishing ITR for FY 2018-19 has been extended till 31st July, 2020 and for FY 2019-20 till 30th November, 2020.

Filing of income tax returns is extremely important. Taxpayers should get acquainted with the consequences that they will face if they do not file their ITR’s on time. Given below are the consequences of not filing ITR within the due date:-

1) Carry forward of losses not allowed

  • Set off of losses means adjusting the losses against the profit or income of that particular year. After making the appropriate and permissible set offs, there could still be unadjusted losses.
  • These unadjusted losses can be carried forward to future years for adjustments against income of these years.
  • However, unless you file your ITR, you cannot recompense your expenses/losses in the previous financial year to the current.
  • If tax returns are not filed on time, unadjusted losses (with some exceptions) cannot be carried forward to future years.
  • Hence, to ensure that the losses are carried forward for future adjustment, a tax return would be required to be filed
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2) Liable to interest on tax liability

  • If you don’t file your ITR, the belated return could lead to extra interest on monthly basis for the remaining tax payable by you.
  • Interest under section 234A is levied for delay in filing the return of income
  • Taxpayer will be liable to pay simple interest at 1% per month or part of a month for delay in filing the return of income from the period commencing on the date immediately following the due date of filing the return of income and ending on the date of furnishing the return of income, or in case where no return has been furnished, on the date of completion of the assessment under section 144.

3) Liable to pay Late Fees and Penalty

  • The income tax department notified the taxpayers for late filing of tax returns for A.Y. 2020-21, along with a penalty of Rs 5000 (on filing the return after the due date but on or before 31st December) and Rs 10,000 (on the filing of return after 31st December to 31st March).
  • The taxpayer has to file the late filing of tax returns for A.Y. 2020-21 before 31st March anyhow.
  • Penalty is applicable even if the taxpayer files the returns before 31st March while there is no option to file the returns after 31st March 2020.
  • However, if taxpayer’s total income does not exceed Rs 5 lakh, then the maximum penalty levied for delay will not exceed Rs 1000.

4) Interest on refund u/s 244A may be lost

According to Section 244A, where refund of any amount becomes due to the assessee, he shall, be entitled to receive, in addition to the said amount, simple interest thereon calculated in the following manner, namely:—

  1. where the refund is out of any tax paid by way of advance tax or treated as paid, during the financial year immediately preceding the assessment year, such interest shall be calculated at the rate of 1.5% for every month or part of a month comprised in the period from the 1st of April of the assessment year to the date on which the refund is granted
  2. in any other case, such interest shall be calculated at the rate of 1.5% for every month or part of a month comprised in the period or periods from the date or, as the case may be, dates of payment of the tax or penalty to the date on which the refund is granted.

The taxpayer will not be entitled to any interest on refund, if the proceedings resulting in the refund are delayed for the reasons attributable to the taxpayer or the deductor (whether wholly or in part). In such a case, wehre the taxpayer has not filed ITR on time; interest on refund u/s 244A may be lost as delay in filing is attributable to the taxpayer for the period by which they had filed late return.

5) Best Judgment Assessment under Section 144

Assessee will be liable for best judgement assessment under Section 144 of the Income Tax Act. According to Section 144, the Assessing Officer, after taking into account all relevant material which he has gathered, is under an obligation to make an assessment of the total income or loss to the best of his judgement and determines the tax payable by the assessee in the following cases:-

  1. where any person fails to make return under Section 139(1) and has not made a return or revised return under Section 139(4) or Belated Return under Section 139(5)
  2. where any person:-
  3. fails to comply, with all of the terms of a notice issued under Section 142(1); or
  4. fails to comply with directions issued under Section 142(2A) for getting the account audited.
  5. where any person, having made a return, fails to comply with all terms and conditions of a notice issued under Section 143(2)

6) Liable to receive notice of prosecution under Section 276CC

  • The offence under Section 276CC, prima facie, stood constituted upon failure on the part of the assessee to furnish the return of income for the assessment year in question within the period prescribed in law.
  • A person can be proceeded against for wilful failure to furnish ITR under section 276CC of the Income Tax Act.
  • Such proceedings can result in punishment by way of imprisonment and fine.
  • The type of imprisonment and the term of imprisonment is linked to the tax that would have been evaded by such person if the failure had not been deducted.

It is always considered a prudent action to file one’s income tax return on time. More than any other benefit, being on the right side of law helps. It is recommended to keep the income tax department informed about one’s income and taxability. This communication is only possible when one files their ITR.]

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