Filing Income Tax Returns

Return of Income (ROI) is an income-tax form in which assessee reports information about his income and tax thereon to the Income Tax Department. The Act provides for assessees who are required to file the ROI and same is required to be filed within prescribed due date and in prescribed manner. Requirement to file ROI and due date for filing the same is provided below:

Mandatory Return Filing


Where total income exceeds the basic -exemption limit i.e. INR 2,50,000.

(Exempted Long Term Capital Gains to be included while computing basic exemption limit)

OR

For NRIs, where total income is less than the basic exemption limit but it consists of

  • Short Term Capital Gains on equity shares or units of equity oriented mutual funds or units of business trust.

  • Long Term Capital Gains chargeable to tax


OR

Resident and Ordinarily Resident having assets / signatory authority outside India or has beneficiary interest in any asset outside India

Voluntary Return Filing

  • Claiming refund of tax deducted at source

  • Carry forward and set off of losses

  • To claim benefit of lower tax under Double Taxation Avoidance Agreement

Due Dates for Filing Return of Income

GENERAL

DUE DATE

TAX AUDIT APPLICABLE

TRANSFER PRICING APPLICABLE

 

Points to Remember:

  • It is advisable to file the ROI on timely basis to avoid adverse consequences as well as for faster processing of refunds (if any).

  • It is essential to file the ROI in order to avail the benefit of carry forward of specified losses.

  • Some countries (such as the US) allow you to file an extension for filing returns. There is no such concept of extension in India

Frequently asked questions

Whether an individual can file his ROI beyond the above prescribed due dates?


Yes, an individual can file his ROI even after the above prescribed due dates. The belated ROI can be filed within a period of one year from the end of the FY for which the belated ROI is to be filed. Further, if the individual wants to file his ROI after the due date of belated ROI, he can do so by filing manual ROI with his tax officer. However, such ROI would not be considered as valid ROI and would not be processed. If the individual wants his late ROI to be processed and claim refund, he may file an application with CBDT to condone his delay and grant him refund.




Whether an assessee can file revised ROI?


Yes, an assessee can file a revised return of income. The revised ROI can be filed within a period of one year from the end of the FY for which the revised ROI is to be filed.




What are the consequences of not filing the ROI within the prescribed due dates by a NRI?


If an NRI does not file his ROI within the prescribed due dates, then he shall be liable for the following:

  • Interest @ 1% per month or part of the month on the tax payable for delay in filing ROI
  • Fees for delay in filing ROI (w.e.f. FY 2017-18). Further, the amount of fees could be Rs. 1000 / 5000 / 10000 depending upon the total income and the date of filing the ROI.
  • He may be subjected to prosecution. However, if the ROI is filed within a period of one year from the end of the FY for which the ROI is to be filed or the balance tax liability after considering TDS and Advance Tax does not exceed Rs 3,000/-, then he shall not be liable for prosecution.
  • Refund cannot be claimed unless condoned by CBDT as stated above.




Whether foreign assets are required to be shown in ROI by a NRI?


No, a NRI is not required to submit the details of foreign assets owned by him in his Indian ROI.




Whether a joint return can be filed for husband and wife?


No, a joint return cannot be filed for husband and wife. As per the provisions of the Act, every individual is a separate assessee and he / she is required to file the ROI based on the total taxable income earned by him / her during a particular FY.





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