Budget 2016 has many proposals to cheer up. One of those is increase in time limit for revision of return already filed. FM announced that time limit mentioned in Section 139 (4) and (5) shall be amended.

 

With the amendment, now, the return filed even after the due date i.e. return filed as BELATED can also be revised.  This seems like a boon for the tax payers. They will now be able to revise the return which is filed even after the due date. Budget provides revision of Belated Return.

 

Due Date as per section 139(1):

Particulars	Due Date
Where taxpayer is ·         Company ·         Any person mandatorily required to get his tax audit done ·         A working partner of a firm whose accounts are required to be audited	30th September of the AY
In case of any other category of taxpayer i.e. salaried/ self employed who are not required to get their tax audit done	31st July of the AY

 

If the taxpayer filed incorrect return or missed out the due date as mentioned above then have the option to revise the return or file the belated return. The current and the proposed provision are explained below:

 

The amendment shall be effective from 1st April, 2017.

 

BELATED RETURN

Current provision:

As per section 139(1), it is compulsory for every assessee to file a return of income or loss for every previous year on or before the due date in the prescribed form if comes under the income tax slab rates. If person and company fail to file ITR on timely basis then following consequences occurred.

Any person who has not furnished a return within the time allowed to him under section 139(1) or within the time allowed under a notice issued under section 142(1) may furnish the return for any previous year at the time   

• Before the expiry of one year from the end of the relevant assessment year or
• Before the completion of the assessment year,

   Whichever is earlier”.

 

Budget reduced the limit to file belated return. So, now, the belated return shall be filed:

 

• Before the of the end of the relevant assessment year or
• Before the completion of the assessment year,

   Whichever is earlier”.

 

REVISED RETURN

Current provision:

As per Sec 139(5), if any person, having furnished a return under Sub-Section (1), or in pursuance of a notice issued under sub-section (1) of section 142, discovers any omission or any wrong statement therein, he may furnished a revised return at any time

• Before the expiry of one year from the end of the relevant assessment year or
• Before the completion of the assessment by the Income Tax Department,

Whichever is earlier”.

 

Budget provided that

If any person, having furnished a return under sub-section (1) or sub-section (4), discovers any omission or any wrong statement therein, he may furnish a revised return at any time:

• Before the expiry of one year from the end of the relevant assessment year or
• Before the completion of the assessment by the Income Tax Department,

Whichever is earlier”.

As per the current provision the returns filed within due date as specified by the department, only could be revised within 1 year from the end of the relevant Assessment Year or the assessment been made by the department, whichever is earlier. But as proposed in Budget, 2016, w.e.f. 1^st April, 2017, now the belated can also be revised in the same way as the returns filed within due dates are revised i.e., within 1 year from the end of the relevant Assessment Year or the assessment been made by the department, whichever is earlier. This reform gives an opportunity to taxpayers to revise, correct or incorporate any relevant data in their ITR, omitted or wrongly filed by them, even if they had filed their ITR belated.

For filing return visit taxmantra.com

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