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Income Tax Returns for Individuals

shyam (DGM) (32 Points)

02 June 2009

There are many individuals who for any reasons discontinue filling returns. For instance I have a case where an Indivudual has file his returns upto AY 2002-03 and after that he has not filed his returns. Now from the AY 2006-07 he wants to file the returns as his income has started attracting TDS i.e. Salary income. Please suggest me the best suitable way to update his returns and file. Should we link with the present returns with his previous file? Pls suggest and for more queries pls contact me at shyam1228 @ gmail.com Thanks

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2 Replies

CA.Tarun Maheshwari (CA, DISA) (7150 Points)
Replied 02 June 2009

No need to link your ITR with the previous files. Under Income Tax Act, each assessment year is a separate assessment year. You need to file the ITR only when your income is liable to income tax. You can file the ITR for current year and there shall be no issue. But remember, you can not file ITR now for AY 2006-07 and AY 2007-08, as the last dates has expired for these returns. You can only file ITR of AY 2008-09 upto March 31st, 2009 with a penalty of Rs.5000/-. And from AY 2009-10, you can regularise your ITRs. For any other clarification, you can write to me.

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Riyaz Khan (CA CS (Exec) MBA (Fin) Asst. General Manager-SEBI Internal Auditor-British Certifications Inc.) (1315 Points)
Replied 02 June 2009

My suggestion is that you must link your returns with the last filed returns in relation to old balances of like Bank Accounts, Capital Accounts etc. Otherwise you may face problem before the Assessing Officer if any.

Further, you can file your last year returns, provided these returns must be Non-Taxable. It is better to file you last year returns before filling your current year returns. Because you may face hurdles in practical life due to missing ITR.s Acknowledgements.

Income Tax Itself binds an Individual to file the ITR if it becomes Taxable during the year, and if your income is below taxable limit then u are not required to file the return u/s 139 of Income Tax Act. So you can file even your last year Returns but remember these must be Non-Taxable otherwise you have to pay penalty u/s 271 F of I.T Act, 1961 for Rs. 5000/-. For further information you may ask further.

Regards

R.D Khan