Individuals can file tax returns for prior years. This is only possible for the two years preceding the current fiscal year for which returns must be filed. Taxpayers have a two-year window in which to file their returns.
Individuals who want to file their income tax returns for previous years can only do so for the two years preceding the current fiscal year for which they must file returns. If a person wishes to file his or her tax returns for the fiscal year 2017-18, the deadline for doing so is the end of the fiscal year 2019-2020.This means that the individual has a two-year period in which to file the returns. In this case, the returns for the fiscal year 2017-18 must be filed by March 31, 2020.
The Advantages of Filing Back Tax Returns
There are a number of advantages to filing tax returns for previous years:
Loans – Individuals who have filed their returns for previous years will find it easier to obtain loans from banks and financial institutions. The loan application process becomes more efficient and less complicated.
Filing previous years’ tax returns also serves as proof of an individual’s income. Tax returns are valid documents that can be submitted whenever an individual’s income needs to be validated.
Individuals who have filed their tax returns for previous years will also find it easier to make investments or trade stocks or shares, as financial institutions look favourably on individuals who have their returns in order.
Refunds – If an individual has been taxed more than his or her taxable liability for the previous years, that individual may be eligible for a refund of the excess tax paid.
Individuals who have filed their tax returns will also find it easier to obtain visas for international travel. Tax returns serve as proof of financial compliance, which is required when applying for a visa.
Consequences of Failure to File Income Tax Returns for Previous Years
Failure to file income tax returns for previous years may result in the following penalties:
Individuals who fail to file their income tax returns by the due date for previous years will be required to pay interest on the unpaid tax amount when filing returns at a later date.
Loss – Any losses incurred by an individual in previous years, whether through business or capital loss, will not be allowed to be carried forward to subsequent years.
Individuals who fail to file their tax returns for previous years before the deadline will be subject to a Rs 5000 penalty imposed by the taxation authorities.
Prosecution – Failure to file tax returns, concealment or nondisclosure of income for previous years may result in prosecution by income tax authorities.
Error – Individuals who failed to file their returns on time in previous years may find errors in these returns when they finally decide to file returns.
Delay in Refund – Filing past-year income tax returns at a later date may result in a delay in the processing of an individual’s tax refund, if eligible.
STEPS TO FOLLOW
STEP 1: GO TO THE INCOME TAX DEPARTMENT’S WEBSITE
STEP 2: LOG IN WITH YOUR CREDENTIALS TO YOUR ACCOUNT
If this is your first time, you must register. First, choose the appropriate user type: individual, HUF (Hindu Undivided Family), external agency, chartered accountant, tax deductor or collector, or third-party utility software. You can then open an account by entering your PAN, first and last name, date of birth, and residential status.
If you are a returning user, enter your user ID, password, and captcha code before clicking login. In addition to the captcha code, you can request that an OTP be sent to your registered mobile ID.
STEP 3: LOOK AT RETURNS/FORMS
After logging in, click on view income tax return/forms to see a list of all your previous years’ returns.
In a tabular format, you can obtain the following information:
● The evaluation year
● The filing date
● Type of Filing
● Information about the person who filed the return
● Number of acknowledgements
And the status can be any of the following:
● ITR completed
● Assessing Officer (AO) processing
STEP 4: SELECT THE ACKNOWLEDGEMENT NUMBER TO OBTAIN THE REQUIRED DETAILS.
If you need to look up information for a specific assessment year, make sure to click on the appropriate acknowledgement number. You can learn more about the processing status and whether the taxpayer has any pending actions.
Return Uploaded indicates that the department has not yet received the ITR-V receipt.If the status is Defective Notice issued under Section 139(9), you have received a defective notice from the IT department.
If the status is Refund Failure, it means that the refund was unsuccessful.
STEP 5 : DOWNLOAD THE FORM FOR YOUR RECORDS
You can save the relevant ITR-V or XML form in PDF format for your records if necessary. That’s all. You can use the five steps outlined above to check the status of your previous years’ IT returns and, if necessary, take appropriate action.
Frequently Asked Questions About Filing Past-Year Income Tax Returns
How many times can I e-file after it has been rejected?
After being rejected, you may e-file as many times as necessary.
Can I file ITR for the previous three years in India?
No, you cannot file ITR for the previous three years in India.
What are the ramifications of never filing an ITR?
Failure to file an ITR can result in severe penalties such as imprisonment for periods ranging from 3 months to 2 years.
What is the penalty for failing to file an ITR?
You will be fined Rs.5000 for failing to file your ITR.
When is the deadline for filing ITR for the fiscal year 2022-23?
For salaried employees, the deadline to file ITR was July 31, 2022, for the fiscal year 2022-23.
Is ITR filing required in India?
If you own a business with a total revenue of more than Rs. 60 lakh, you must file an income tax return. If you are a salaried individual with an annual income of more than Rs.10 lakh, you are required to file an ITR.
House Rent Allowance(HRA)
- The house rent allowance (HRA) is a tax-related term. It refers to the salary portion of the rent payment that was received and is permitted as a deduction from taxable salary under Section 10(13A).
How Are HRA Tax Exemptions Calculated?
– The smallest of the following amounts is the deduction that is available:
– Actual HRA was paid
– 50% of [base salary plus DA] for metro area residents
– 40% of [base pay plus DA] for people residing outside of urban areas.
– Actual rent should not exceed 10% of base pay plus DA.
Can I deduct the interest on my home loan and use HRA?
- As the HRA has no impact on your ability to deduct home loan interest, you may claim it. Both are valid claims. To determine your HRA exemption, use our free HRA calculator. With the help of this calculator, you can determine how much of your HRA is taxable and how much is tax-exempt.
– Employers who continue to provide standard group health insurance can also provide Excepted Benefit HRAs (EBHRA), which allow employees to be reimbursed for up to $1,800 in eligible medical costs annually.
– Even if they decline workplace health care coverage, employees can join in a “excepted benefit HRA,” but they cannot use the funds to purchase complete health insurance.
– However, they may use the money to cover eligible medical costs, short-term health insurance premiums, and dental and vision insurance costs.