Simply stated, filing your ITR is a process to inform the government about the revenue you earned during this particular fiscal year (1 April to 31 March of every year). The ITR is an overview of your revenues, the total tax payable, the liabilities, and the financial year’s tax refunds. In July each year, the ITR is to be filed before the deadline.
Can I file in one year my ITR for the last three years?
No, for the last three years, in a year, you cannot file an ITR together. Let us clarify the difference between a financial year and an evaluation year before plunging into this topic. For example, if we take the financial year 1 April 2020 – 31 March 2021 into account, the revenues earned for this financial year shall become taxable in the year of evaluation between 1 April 2021 and 31 March 2022. The deadline is 31 July 2021 for employees and companies, business partners, etc. This is 30 September. This is the system mandated by each taxpayer during the filing of the tax return.
However, this is not a hard process and is subject to some exemptions. Usually, during the filing of tax returns, the government is extending the deadline by some months as taxpayers face multiple problems. If your extended deadline to file your ITR was missed, a “Belated Return” that has been introduced in the financial law of 2017 will still allow you to file your ITR with a sanction.
Overdue of Income Tax Return
- Under paragraph 139(4) of the income tax act of 1961, a person cannot file a tax return with the penalty prescribed by an income tax department if he/she fails to file the tax declarations within the due date.
- This delayed return is available to the tax authorities at any time before the end of the relevant valuation year or before the assessment is completed, as the case may be. This scheme applied from the 2017-2018 evaluation year, i.e. from the 2016-17 financial year.
- An example might be given: for the fiscal year 2017-2018, the income tax return due dates was 31 July 2018 and 30 September 2018. If a taxpayer fails to file the ITR on time for whatever reason, he can file a belated tax return before the end of the assessment year, i.e. before March 31, 2019.
Important Points to Consider
- If the assessee has submitted a late ITR, he is required to pay the tax plus 1% interest each month under section 234A of the Income Tax Act.
- Similarly, the late ITR should be accompanied by the required penalty.
- If a return is filed after an assessment that is later canceled, the return is considered legitimate.
- According to the Finance Act, a late ITR can be amended, which implies that any errors committed during the filing of the income tax return can be corrected.
- If a taxpayer is not due to pay any taxes, he is excused from incurring interest and penalties for filing a late ITR, but only if he does so before the end of the assessment year.
Summary
Filing your ITR is a process to inform the government about the revenue you earned during this particular fiscal year (1 April to 31 March of every year) For the last three years, in a year, you cannot file an ITR together with your tax return. Taxpayers are required to pay income tax plus 1% interest each month if they file a late ITR. The Income Tax Act provides for penalties and interest for taxpayers who fail to file their taxes on time, according to the Finance Act.
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