How to file income tax return for last three years ?

By | October 26, 2021

The deadline for filing an income tax return for the fiscal year 2020-21 was December 31, 2021. If an individual was obligated to file a return but failed to do so, he or she has a limited number of choices for filing the return. 

Everything about filing an Income Tax return  for previous years

According to a 1987 amendment to the Finance Act, you have one year from the end of the relevant Assessment Year to file your late IT return (AY). For example, the deadline to file a late return for the 2016-17 fiscal year was March 31, 2018. From AY 2017-18 onwards, belated IT returns must be filed before the end of the relevant AY, as per the modification made by Finance Act 2016. As a result, for the fiscal year 2019-20, the deadline to register a belated return is 31 March 2021.

The Finance Bill 2021, on the other hand, has shortened the deadline for filing the late return even more. You can file the belated return three months before the end of the relevant assessment year or before the conclusion of the assessment, whichever comes first, starting with AY 2021-22.

For example, a late return for the fiscal year 2020-21 can be filed until December 31, 2021. (if assessment is not completed). CBDT has extended this deadline until March 31, 2022, specifically for FY 20-21. 

How long does it take to file a late tax return?

Taxpayers have until the end of the assessment year or the completion of the assessment, whichever comes first, to file a late return. For example, a belated return for the AY 2019-20 (equivalent to FY 2018-19) can be filed until March 31, 2020.

However, beginning in FY 2020-21, late returns can be filed three months before the end of the relevant assessment year or the completion of the assessment, whichever comes first. As a result, the deadline to file a late return for the fiscal year 2020-21 is December 31, 2021. (extended to 31st March 2022 specifically for FY 2020-21).

After being rejected, how many times can you e-file an ITR?

You can submit your e-filed return as many times as you need until the October filing date. However, we urge that you print, sign, and mail your return after three unsuccessful attempts (with the same e-file error). Some e-filing problems can only be remedied by the IRS.

How to file the unfiled returns for the fiscal year 2020-21?

Effective with the assessment year 2017-18, a modification to the Finance Act 2016 stipulated that income tax returns must be filed before the end of the relevant assessment year. You will not be able to file the returns if you have missed the deadline. In some circumstances, the IRS enables taxpayers to file returns after the deadline. 

The following methods will assist you in submitting a request for a delay condonation:

  1. Request permission to file income tax returns from the Income Tax Commissioner or the specified body, and explain why you missed the deadline. The officer may approve your request if the following criteria are met:
  • The claim is true and correct.
  • The case is founded on actual merits hardship.
  • Excess tax deductions, TDS, advance tax, or self-assessment tax have resulted in a refund.
  • Under the Income Tax Act, no one else can assess the tax.
  1. For such applications, returns must be filed within six years of the end of the assessment year. For example, if you missed the deadline for filing returns on March 31, 2021, you can file an application until March 31, 2026.
  1. Under Section 234A, 234B, or 234C, if you have not paid the tax for FY 2020-21, you must pay the tax plus appropriate interest. Even if you are unable to file, you must pay the tax.
  1. It’s possible that you paid your taxes on time yet failed to file your returns. You won’t be able to file taxes or request for a delay condonation in this situation. For failing to file an ITR, the IRS may issue a notice under Section 271F. If you miss the deadline, you could face a penalty of up to Rs.5,000. You may not have to pay the penalty if you have a legitimate reason for not filing and the officer is pleased with your explanation.
  1. The IRS can take legal action against you if you don’t file returns, including sending a notice and imposing penalties. In the worst-case situation, you might face criminal charges and a term of up to seven years in prison.
  1. You must respond to an income tax notification through the income tax e-filing system if you receive one. After then, you can file an ITR to comply with the notice.
  1. If you under report your income, you could face a penalty of up to 200 percent of the tax due. If a taxpayer pays taxes with interest beyond the deadline but underreports his income, the assessing officer may waive his penalty and no penalty will be assessed. 

Though there is an option if you miss the deadline for filing ITRs, it is recommended that you file returns by July 31 of the next assessment year. For example, you must file your ITR by July 31, 2021 (extended to December 31, 2021) for the fiscal year 2020-21.

What should you do if you receive a notice of late payment?

You must prepare your taxes if you have gotten a notice from the IRS requesting that you submit returns that span more than two fiscal years. The return can then be printed and submitted to the Income Tax Office in your ward. In most cases, a taxpayer responds to an income tax notification by filing old returns. 

There was a one-year time limit for filing an amended return from the end of the relevant AY until AY 2017-18. It’s worth noting that, beginning in AY 2018-19, the time limit for filing an amended return (correcting any omissions, errors, or other irregularities in the initial return) has been shortened. At the moment, such a revision must be completed by the end of the relevant AY.

Disadvantages of filing late returns

The disadvantages of filing late returns include the possibility of interest under sections 234A, 234B, and 234C. If the return is filed on or before the 31 March of the relevant AY, a fee of up to Rs 5000 will be charged under Section 234F. Following that, a fine of up to Rs 10,000 may be imposed.