1. I have not filed return for FY 09-10. My first question is whether I can file return for this particular FY as belated?
2. In that FY (09-10) I changed employers and thus both employers took standard deduction into consideration while deducting TDS. Same is reflected in form 16s. As a result I owe substantial amount of tax with penalty as per my calculations. My second questions, is there a way to legally reduce the outstanding tax payble?
Requesting detailed reply.
The time limit to file a belated return is 1 year from the end of the relevant AY. In your case for FY 09-10 (ie, AY 10-11) you can file a belated return upto 31 March 2012. So effectively you cannot file a return for FY 09-10 at present.
The option you have is, either do nothing and wait for proceedings (which is risky as Section 147 could be initiated). or
Approach the concerned Assessing Officer and pay the tax liability along with the applicable interests and penalties. (also seek to satisfy the AO)
There will not be any way to reduce your tax liability as the same would be evident.
The return filed now will be treated as non est, being out of time. However, it is better to file the return now with tax and interest till the date of filing, as there is a clear under payment of taxes. Doing nothing is risky. Remember the time limit for reopening assessments is six years.
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