Income Tax Return or ITR is a form that should be submitted by an assessor to the Income Tax Department of India. The form should be filled out with details regarding the income earned by the assessee and the taxes that should be paid during the year. Basically, it will be pertaining to a financial year which starts on the 1st of April during a particular year and ends on the 31st of March of the next year, say the financial year 2020-21 will be commencing on the 1st April 2020 and ending on the 31st of March of 2021.
The income earned by an assessee as per the Income Tax Act and the form ITR will be summarized into the following heads, namely;
- Income from salary
- Profits and gains from business and profession
- Income from house property
- Income from capital gains
- Income from other sources such as dividends, interest on deposits, royalty income, winning on lottery, etc.
The Income Tax Department basically prescribes seven types of ITR, the applicability of which will depend on the type of taxpayer, nature of income earned, and amount of income. ITR forms are ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7.
It is to be noted that the ITR pertaining to a financial year should be filed during the Assessment Year, which is the year after the financial year. For example, taking the financial year 2020-21, we can say that the Assessment Year for the same is 2021-22.
Due Dates for filing of ITR
| NATURE OF TAXPAYER | DUE DATE FOR FILING OF ITR | EXTENDED DUE DATES FOR AY 2021-22 |
| Â Â Individual/HUF/AOP/BOI whose books of accounts need not be audited | 31st July of the Assessment Year | 31st December 2021 |
| Â Â A working partner of a firm whose accounts are required to be audited as per the Income Tax Act or any other law in force | 31st October of the Assessment Year | 15th February 2022 |
| Person (other than the company) whose accounts need to be audited under the Income Tax Act or any other law in force | 31st October of the Assessment Year | 15th February 2022 |
| Â Any company other than the one who is required to furnish a report in Form 3CEB u/s 92E | 31st October of the Assessment Year | 15th February 2022 |
| Â Â Assessee (corporate/non-corporate) who is required to furnish a report in Form 3CEB u/s 92E | 30th November of the Assessment Year | 28th February 2022 |
HUF – Hindu Undivided Family
AOP – Association of Persons
BOI – Body of Individuals
Section 92E Furnishing Reports of International Transactions
Belated Return
In the chart given above, we can see the due dates for filing the ITR by various taxpayers. But what happens if the returns are not filed within this due to certain circumstances that might arise during the assessment year?
If the due date of filing specified under section 139(1) of the Income Tax Act was missed by the assessee, a belated return could be filed under section 139(4). It is to be noted that any person who has not furnished their return of income within the due date specified under section 139(1) or such other due date or period allowed as per the notice issued under section 142(1), may furnish the return for the previous year, at any time 3 months before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier. However, for the AY 2021-22, the limit for filing the belated income tax returns is extended up to the 31st of March 2022.
However, such belated return filing will attract a penalty or fine under section 234F, which states that late filing fees of INR 5000 shall be payable by the assessee if the return is furnished after the due date specified under section 139(1). The maximum penalty that can be levied under this section is INR 10,000, which shall become applicable if you file the return after 31st December of the relevant assessment year. But if the total income, which is taxable in the case of an assessee, does not exceed INR 5,00,000, then the late filing fees shall be limited to INR 1,000, which has been provided as a relaxation.
Why should an assessee file ITR on time?
By filing an ITR on time, there are multiple benefits that an assessee can reap, irrespective of the fact that you are an individual or company or such other assessee or taxpayer. The assessee can avoid any penalty or fines which are applied for filing a belated return, which adds to the cost incurred. The carry forward of losses shall be allowed only if you file the return within the due date, which is applicable to you as per the Income Tax Act, and this will again take away the assessed chance to claim a deduction in tax by adjusting the loss from previous years. Along with all this, you can easily avail of any loan which might be required by you as an assessee as your income details shall be easily furnished with the bank or financial institution, and an Income Tax Return is one of the most relied upon or authentic sources for the same.
Thus, we can now conclude that belated return filing under section 139(4) should only be relied upon in case of emergency or any other unavoidable situations that might arise, making it impossible to file the return within the due date.
