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Revised ITR And How To File ITR

A revised ITR means filing our Income Tax Return again in case we have committed any error or omitted to disclose any facts while filing the original ITR. Individuals who have wrongly filed the ITR can revise it, correct the mistakes and the revised return would be considered to have been filed on the same date on which the original return was filed. Earlier this was not the case as the individuals were allowed to revise the ITR only when the original return was filed on or before the due date of filing return for the assessment year. Now, even a belated return that is a return filed even after the due date can be revised. Also, returns that have been already processed by the income-tax department can now be revised, given the taxpayer revises the ITR within the prescribed time limit.


Due date for filing a revised ITR
A return is required to be filed before the end of the relevant assessment year. Hence, a revised return for the assessment year 2018-19 must be filed on or before 31 March 2019. However, the facility should only be used if the taxpayer has missed or wrongly entered an item into statement. Willful non disclosure of any item while filing the return for the very first time does not fall in this category. For instance, if the taxpayer did not disclose a source of income on purpose and was sent show cause notice, he cannot escape by filing revised ITR as the assessing officer has all the right to disregard the revised ITR and start the scrutiny.

How many times can a person revise an ITR?
Taxpayer has the right to revise the return without paying any extra charge as and when he discovers omission or wrong inclusion. The authorities do not keep any limit on the number of times the return can be revised as long as it is revised within the prescribed time limit. It does not mean that you should file your ITR carelessly because it would lead to complications in future. Further, multiple ITRs can cause suspicion among the Income Tax authorities.

Steps to file ITR :
The process and manner of filing a revised Income Tax Return are the same as filing an original return. It just that the revised ITR would have the changes that the taxpayer has made.
1) Go to the e-filing website of Income Tax Department and use your credentials to login. Then, go to My Tax Return under My Account.
2) Click on the option View Details for the year you want to revise your income tax return and in the in the same tab, provide the details of the original return filed, such as filing date and acknowledgment number.
3) Scroll down and click on Click once done with making new entries.
4) Your return will be marked and then you can make desired corrections and changes.
5) Go to Tax Filing Tab and click on Proceed to e-filing.
Once the revised return is filed, ensure that you have e-verify the same your income tax return as Income tax department will not accept the revised tax return, unless it is verified by you.

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New changes made in ITR filing process this assessment year

Last date of filing the ITR is just around the corned and it is time to be aware of all the rules that have been revised in filing process. It would be good to understand these processes since you do not want to make any mistake while ITR filing the return.

ITR filing

ITR filing

Late Fee

The date has not been changed but the ITR department has now brought in the provision of fine for late filing of the fee. If an individual files the return by December 31st, late fee would amount to 5000 or Rs 10,0000 if it has been filed after 31st December 2018. However, those who have income below Rs 500,000 will have to pay the lower late fee amount of 1000/-

What changed?

  • Previously, the provision of late filing fee was there but an individual had to pay 5000/- if he filed the income tax return after 12 months from the year end.
  • It could have been waived off in case the taxman was convinced that there was a genuine reason.
  • This year, there is a mandatory fee of 5000/- for late filing
  • There is no change in the mode of filing tax return
  • The last date to file the belated return for FY 2017-18 is the March 31st, 2019. After this date, late filing is not permitted even if an individual is willing to pay the applicable late filing fees.

Additional Disclosure requirement

If the landlord is receiving the rent of more than 50,000/- per month from the tenant, the amount would be subjected to TDS. If the tenant has undertaken the compliances by his PAN, the field for mentioning the name of the one who would deduct the tax are modified so that the name of the tenant can be put.

Sahaj Form

Sahaj form is still available but cannot be used by someone who is a Non-resident or Not ordinarily resident. It implies that NRIs who are outside India or foreign nationals residing in India would have to fill the details of their income sources.

Validation Rules – The Income tax department has laid down various validation rule for filing the Income Tax return. The tax payer would need to go through and comply by all the new validation rules that are in the place.

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Here is how to check ITR refund status online ?

The refund banker scheme was started in 2007 under which the refunds generated on processing of Income tax Returns by the Assessing officers/ CPC-Bangalore are transmitted to State Bank of India, CMP branch, Mumbai (Refund Banker) on the next day of processing for further distribution to taxpayers. You can also check the refund status through the process mentioned below.

Modes of refund

There are two modes of refund:-

  • RTGS / NECS: To enable credit of refund directly to the bank account, Taxpayer. Bank A/c (at least 10 digits), MICR code of bank branch and correct communication address is mandatory.
  • Paper Cheque: Bank Account No, Correct address is mandatory.

How to view status of refund?

The taxpayer would be able to pay the refund 10 days after their refund has been processed by the assessing officer to the refund banker. The taxpayer would have to fill in his PAN number and assessment year. Here is the link to the page https://tin.tin.nsdl.com/oltas/refundstatuslogin.html

Additionally, refund paid status would also be available in the ‘Tax credit statement’ in Form 26AS.

Process

Step 1 – Go to the Income tax e-filing website by clicking here https://www.incometaxindiaefiling.gov.in/home

Refund Status Home Page

Refund Status Home Page

Step 2 – Click on the option on the left hand side reading – Check refund dispatch Status

Step 3 – Enter the PAN number , assessment year and captcha in the space given

Refund Status page

Refund Status page

Step 4 – Click on Submit to get the status of your refund

Remember that the last date for filing the Income tax return is 31st July 2018. Post this date, under the new rule you would be charged penalty for late filing.

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Who is eligible for Presumptive Tax Scheme and how to file it

Presumptive Tax scheme is meant for the small businessman and professionals who cannot afford to hire a professional accountant. On most occasions, incomplete filing can be seen as the under compliance of the taxation or even non-disclosure of the income. To make sure that the honest taxpayers do not have to bear the brunt, the presumptive ITR has minimal compliance requirements.

Presumptive Tax

Presumptive Tax

Who can Select Presumptive Taxation Scheme?

All eligible resident individuals, Hindu undivided families and resident partnership firms can opt for the taxation scheme. The professionals who can opt for the PTS scheme are :

Doctors

Engineer

Architect

Interior Designer

Technical consultant

Lawyers

Accountant

Any other professional as notified by CBDT

There are certain rules and regulations in place related to who can opt for the PTS on few factors such as

Receipts

Nature of the business

Profession for option PTS.

Take for instance, an individual who has the total receipt of less than Rs 50 lakhs annually and does not own more than 10 good carriages and is into the business of plying, hiring or leasing can go for the PTS.

BusinessProfessionalsTransporters
Relevant Section44AD44ADA44AE
Maximum turnoverRs 2 CroreRs 50 lakhUp to 10 trucks
Profit or income to be declared8% of the turnover(6% of the digital income)50% of total receiptsRs 7,500 per truck

Who is not eligible?

  • Limited Liability partnership firms
  • Businesses that avail the benefit of SEZs or backward area
  • If the nature of the income is commission or brokerage

ITR to be selected

Those taxpayers who wish and are eligible to avail PTS under Sections 44AD, 44ADA or 44AE would need to select ITR 4. There has been a lot of changes made in the ITR 4 this year and some of the notable ones are:

  • Four financial of the business namely total debtors, total creditors, cash balance and total stock in trade
  • Details of secured/ unsecured loans, fixed assets, capital account and so on
  • GSTR number of the assessee and the turnover as per GST return filed by the assessee.

Structure of ITR 4

  • General Information
  • Gross total income from the five heads of income
  • Deduction and total taxable income
  • Tax computation and tax status
  • Verification & signatures on the return
  • Details of income from Business

Is GSTR number necessary?

Under the GST regulations, if a businessman or professional has a turnover below Rs 20 lakh during the last fiscal year, there is no need of GST registration and he is eligible for PST. The GSTR number should be left blank.

In case the taxpayer has capital gains along with the business income, then he should opt for ITR-3 rather than ITR 4 according to the tax experts.

Looking for tax filing help call @09902977233 or email @[email protected] 

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Six ways to e-verify the Income tax return

After filing the ITR, it should be verified by the assessee and is not deemed valid unless it is verified by the concerned assessee. The authorities have made it possible to e-verify the return either physically or electronically.

Those who select the option of e-filing can do so either at the time of uploading or after uploading. When the return has been already uploaded, the taxpayer can verify the return by clicking ‘e-verify return’ option under the option “My account” after logging in the e-filing website.

e-verify ITR

e-verify ITR

There are six ways in which the returns can be verified electronically.

Through One-time Password – A one-time password is sent to the registered mobile number of the user and is valid of 72 hours. The OTP can be used by the taxpayer, given that Gross Income – deduction is less than or equal to Rs 5 lakh. Also, the refund/demand is less than or equal to 100.

Using Net banking – The return can also be verified using the net banking option. For this, the individual would need to log-in in the net-banking account and click on the tab related to income tax filing. The tax payer would then select the e-verify option. Once, you land on the income tax e-filing website, Click on My account to generate the OTP which would be valid for 72 hours.

Bank account-based validation system – As a pre-requisite one needs to pre-validate his bank account first. The option is available in the profile settings menu in the e-filing account. After the pre-validation, EVC can be generated. Also, the bank account that the tax-payer is using for the validation should be present in the list. As of now there are just 12 banks offering the facility of account-based validation.

Through Demat account number – Just like in the bank account validation system, one can also verify through the demat account number. In order to use the demat account number, it should be validated first just like the bank account. After selecting the depository and feed the mobile number and email ID. After the details are confirmed by the depository, you can validate. The tax-payer would be able to change the mobile number or e-mail ID only after the revalidation with the depository.

Bank ATM – Start with swiping the ATM on your bank ATM and then click on “Pin for e-filing”. You would receive the registered mobile number. Login to the e-filing portal and choose verification mode as “Already generated EVC through Bank ATM”. The taxpayer can submit the return and enter the EVC to verify the ITR.

Aadhar OTP – After logging in to the e-filing portal, the returns can be submitted, and the verification mode should be selected as “Aadhar OTP”. The OTP would be sent on the registered mobile number linked with the Aadhar. Enter the OTP when prompted and ITR would be verified.

For those who do not want to e-verify can verify the ITR by sending the hard copy of ITR-V to CPC, Bengaluru.

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Consequences if an individual missed the belated ITR filing return date

Income Tax related rules are put in place to ensure that everyone fills their obligation in time. It acts as a kind of deterrent for all the taxpayers so that they do not delay. Income tax rules have undergone few changes over the last few years and therefore it become important for an individual to go through all those new rules including belated ITR

belated ITR

belated ITR

in order to avoid any form of penalty.

Only recently, government came up with a big change when it squeezed the timeline to file the return for financial year 2016-17 till March 31st 2018 which was previously allows till 31st March 2019 according to the previous rules. This was primarily done in order to stop tax evasion.

Under the new rule, last date to file the tax for financial year 2015-16 and financial year 2016-17 was March 31st 2018. In case an individual could not comply with the final deadline, there are very few options. However, you should be relived that there are few options ahead.

What is belated return?

If an individual is filing the income tax return after the due date, it is called filing belated return. As per the previous law, a belated return can be filed anytime before the assessment year ends. However, in case the taxpayer could not even respect the belated return date, there are few options left.

Alternatives you have

The Income tax department allows an individual to file the return even after the deadline of 31st March 2018. However, it is required that an individual should offer the sincere reason behind the delay if the authorities must grant permission to file the return. In order to convince the taxpayer, one should file an application of consonance up to six years from the from the FY 2015-16 to the last date that would be 31st March 2023. In case you did not pay the taxes for the relevant year, under U/s 234A, u/s234B and u/s 234C, the tax amount should be paid.

In case, you have paid the tax but could not file the ITR, it is not possible to apply for the condonation of delay. Additionally, the Income tax department might send the notice of penalty, maximum Rs 5000. If the individual is able to furnish the valid reason and income tax payer agrees that is a genuine reason, the penalty can be waived off.

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Which Income Tax Return form Should you Opt For Filing An ITR

As Income Tax department has been making ITR forms live on their website one after another, individuals who are filing the Income Tax Return for the first time are finding it challenging to access as to which form should they file. This is the most common confusion that we come across at least once in our career because there is a first time for everything and so is it for the filing of ITR.

Let us understand the different types of ITR forms and who should file them. For an Individual, these are the Income Tax Return forms to be filed: –

  • ITR-1
  • ITR -2
  • ITR -2A
  • ITR -3
  • ITR- 4
  • ITR – 4S

ITR -1 Form – Also known as Sehej form, it is filed by an individual taxpayer. Following are the type of individuals who should fill ITR-1

  • Income through salary or through means such as Pension
  • Income from Single Housing Property
  • No asset outside India
  • No Income from outside India
  • No Income from any other business or who from the sale of any assets
  • Income from agriculture is below Rs 5000
  • Earn Income from Various Investments such as FD, shares etc
  • No Income from Lottery and windfalls

Individuals who want to club the income of their spouse or underage child with their own and the income to be clubbed is earned from one of the sources mentioned above.

ITR -2 –Following type of Taxpayers are eligible for Income Tax Return 2

  • Earn Income through salary or through means such as Pension
  • Earn Capital Gains
  • Do not have income from any business venture
  • Earn income from more than one housing property
  • Have Asset outside India
  • Earn Income from outside India
  • Agriculture Income is over 5000
  • Earn income through windfall gains and lotteries.

ITR -3

An Individual or a HUF who operates the business as a partner in a firm but does not conduct any business under the firm. Also, he does not earn any income from the business conducted by the firm. These taxpayers receive income as following:

  • Salary
  • Commission
  • Bonus
  • Interest
  • Remuneration

ITR – 4

The form should be filled by those Individuals who conduct a business or earn income through their profession. The form can be filled by any type of business, professions or undertaking. Those who earn income from the speculation, salaries, lotteries, housing properties etc. should also opt for this form. Any profession ranging from designers, doctors, retailers, contractors, agents can fill this form.

ITR – 4S – Also known as Sugam form, it can be used by an Individual or HUF for filing their tax return. Applicability of this form is to the following:

  • Income from any business
  • Income from a single housing property
  • No Capital Gains
  • Income from agriculture is below 5000
  • No property or asset outside India
  • No Income from outside India

Note : The ITR form is used in the special circumstances and for the businesses where any income earned is based on a presumptive method of calculation.

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Pan Deactivation- Steps to Reactivate before ITR filing

Just last year, the income tax department deactivated the PAN of those who were allotted more than one PAN at a time. Every Individual is allotted just one pan card and having more than that is illegal therefore leading to Pan Deactivation. Therefore, the drive which was conducted by income tax department last year swept of over 11 lakh Pan cards. However, most the individuals had hardly any idea of such a massive campaign going on across the nation and they got to know only at the time of starting the process of ITR.

How To Check?

To know whether the Pan Deactivation has affected you also, first the status should be checked.

In order to know if the PAN you have been using to file the ITR  is blocked, there are certain steps to be followed.

Step 1 – Assess  https://incometaxindiaefiling.gov.in/e-Filing/Services/KnowYourPanLinkGS.html

Pan Deactivation Status check Detail Page

Pan Deactivation Status check Detail Page

Step 2- Enter Surname, Name, DOB and other information asked along with the Mobile Number. After doing so, you would get OTP on the registered mobile.

Pan Deactivation Final Status Window

Pan Deactivation Final Status Window

Step 3- Result Page would display the PAN and jurisdictional officer address along with active or inactive status.

Pan Status

Pan Status

Pan Deactivation – How To Reactivate?

It is important to know the procedure of getting the Pan reactivated again. Here it is:

  • First of all the individual whose Pan has been deactivated needs to write a letter addressed to their jurisdiction AO in the Income Tax Department asking to reactivate the Pan.
  • All the required documents should be attached which can establish that the PAN which was blocked is being used to file the return. Documents that can be submitted include:
  1. Indemnity Bond in favor of the Income Tax Department
  2. Copy of the Pan which has been used to file the income tax returns regularly.
  3. Copies of Income tax return filed by the assessee over the past three years using the blocked PAN card.

Once, the request has been sent, it would take somewhere around 10-15 business days for the Income Tax department to reactivate the blocked PAN.

Surrendering the Additional Pan Cards

In case you have an additional PAN Card, now is the time to surrender before the Pan Deactivation drive kicks, the procedure of which is quite simple.

Step 1 – Visit the official NSDL Site

Step 2- Select Pan Correct option from the Application type dropdown.

Step 3 : Fill the Details in the page

Step 4- A token would be generated and would be sent on the registered emaili-id. A new page would appear where you would need to mark the option, ‘Submit scanned images through e-Sign’ and below that feed in the PAN number that you want to keep activated. Fill the details asked for

Step 5- The next page would ask for the additional Pan that has been allotted to you and click Next

Step 6- The next page would appear where you would need to upload the scanned images, signature and other documents.

Step 7- Payment to be made for the Pan application within India – 110 INR

For Outside India – 1020 INR

Step 8 – Acknowledgement Window – Make sure to save the window for the future references.

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