Belated filed return can also be revised now
TAX TALK-16.10.2017-THE HITAVADA
TAX TALK
CA. NARESH JAKHOTIA
Chartered Accountant
Error
in income tax return forms can be corrected by filing a revised return.
Earlier, revision option was available only if the original return was filed
within due date i.e., revised return filing option was available in case
original return is filed after due date. However, the law has now been amended
from AY 2017-18 so as to allow the filing of revised return even if the
original return is filed belatedly i.e., after the due date. Now, return filed
belatedly can be revised.
Belated
filed return can also be revised now
Query 1]
While filing my income tax return for FY 2016-17 (AY 2017-18), there
had been some incorrect entries made by the person preparing the return
on my behalf. The same were corrected immediately by filing a revised
return on 30-07-17. However, after a few days I noticed
another mistake, in the entry of amount of cash deposit (old
denominations) during period 08-11-16 to 30-12-16 in one of my bank accounts.
Against an actual deposit of Rs. 90,000/- in this account, the amount entered
was Rs. 1,88,000/-. Due to this, the total cash deposited in all my accounts,
which was actually below Rs. two lakhs (Rs. 1,97,000/-) seemed to exceed
Rs. two lakhs. When asked to correct this error, I was informed that the ITR
can be revised only once and since ITR is already revised, no further
amendment is possible. Now, although the actual details can easily
be verified from bank records if required by IT Department, can I correct
the details proactively from my side so as to avoid any IT notice? Kindly advice.
[bharatdube@gmail.com]
Opinion:
Income tax return forms requires not only details of income
but also various other details. One needs to be very cautious while filing
income tax return as furnishing inaccurate information or false information
carries penal consequences. The funny part, leaving column blank could also be
penalizing. Error & mistake are often the results of new changes in the
forms ignored while filing income tax returns. Some of the
important changes in the current year form includes:
1. Reporting of cash deposits during
demonetization period in saving & current bank accounts if it exceeds Rs. 2
Lakh.
2. All bank accounts of the taxpayers.
3. Aadhar Card & Passport Number
4. Taxpayer whose income exceeds Rs 50 lakh
per annum had to file a declaration of assets & liabilities.
Error in income tax return form can be
corrected by filing a revised return. Earlier, revision option was available
only if the original return was filed within due date i.e., revised return
filing option was not available in case original return is filed after due
date. However, the law has now been amended from AY 2017-18 so as to allow the filing
of revised return even if the original return is filed belatedly i.e., after
the due date. Now, return filed belatedly can also be revised.
There is no restriction on the number of
times a return could be revised. Once a revised return is filed [u/s 139(5)],
the original return [U/s 139(1)] is supplanted by the revised return as a
result of amendment made in the original return as effected by the revised
return. A revised return supplants the original returns by effecting a revision
therein [Niranjan Lal Ram Chandra vs. CIT (1982) 134 ITR 352]. However, the
facility should be used sparingly as it may increase the chances of return
being selected for scrutiny. It is always in the interest of taxpayer to file
your original I-T return with utmost care, avoiding the chances of any error or
omission. One can however still use the opportunity provided by law to rectify
mistakes in your return, if any, before it is too late.
How to file a revised return?
For filing the revised return, taxpayer is quote the acknowledgement number and the date of filing of the original return in the revised form. If anyone is filing a revised return more than once then at first and every subsequent revision, acknowledgement number and the date of filing relating to the original return only is required to be filled.
For filing the revised return, taxpayer is quote the acknowledgement number and the date of filing of the original return in the revised form. If anyone is filing a revised return more than once then at first and every subsequent revision, acknowledgement number and the date of filing relating to the original return only is required to be filled.
Query 2]
1.
My Daughter is a staff working in the Government of
Maharashtra’s Hospital at Mumbai and falls under 10% Income Tax bracket. For
the FY 2016-17, they have not given the Form No. 16 till date and she has not
filed the IT return. On enquiry, it is informed that it is in
process. They are citing the reason of staff shortage for correction in
the TDS. Will the IT department take up the matter with the hospital
authorities to rectify the mistakes? I would like to know through your good
self whether there is any deadline for issue of Form No. 16 and any provision
for sending the Form No. 16 by post to the employee? Kindly also let me
know the course of action to be taken by the undersigned / my daughter to set
right the things. Whom shall I approach?
2.
In the financial year 2015-16, the Hospital authorities
deducted TDS of Rs. 4,000/- and given Form No. 16 also. Accordingly, she
filed the IT return claiming Rs. 800/- as refund. Unfortunately, few days
later the IT department from Bangalore sent her a notice that no
remittance were done by your employer and take up the matter with them for
correction and re-submit the IT return. She has taken up the matter with
the DDO of the Hospital and asked for ‘Traces Form No. 16” but till date the
hospital authorities neither given the same nor corrected the mistake and it is
still pending. [T.Varkey - pvthomas_57@rediffmail.com]
Opinion:
First part:
First part:
Tax Deduction at Source (TDS) is one of the
main sources for the Government in widening tax base & ensuring regular inflows
of taxes. Despite so many awareness & penal consequences, there are still
numerous instances of non compliance. Without payment of tax & quarterly filing
of TDS by the Deductor, TDS amount would not get reflected in the 26AS
statement of the deductee & results in denial of legitimate tax credit.
Deductee are in a fix when the payer deducts tax but doesn’t deposit it or
after deposits either doesn’t file TDS return or file it erroneously without
correctly mentioning the details of deductee. This is the most common grievance
that is faced by many deductees across the country. The problem arises not only
at the time of claiming tax credit but also arises at the time of e-filing of
return.
The person deducting the tax at source is duty bound to:
The person deducting the tax at source is duty bound to:
a. Deposit the amount
of Tax Deducted at Source (TDS) within prescribed time in the Government
Treasury.
b. File the Quarterly
TDS return within a prescribed time.
c. Issue the TDS
Certificate to the Deductee within a prescribed time.
There is a penalty
on deductor for non compliance with each & every obligation mentioned above.
More importantly
i.
Non
filing of TDS Return within prescribed time attracts a fine of Rs. 100/- per
day, subject to maximum of TDS amount [u/s 272A(2)(k)].
ii.
Mandatory
late filing fee of Rs. 200/- per day subject to maximum of TDS
amount, is also leviable u/s 234E.
iii.
Penalty
of Rs. 10,000/- to Rs. 1,00,000/- is there for non filing or inaccurate filing
of TDS return [u/s 271H].
iv.
Non
issuance of TDS Certificate within a prescribed time attracts penalty u/s 272A
(2) (g) @ Rs. 100/- per day, subject to maximum of TDS
amount, during which the failure continues
In your case, you have already approached
the deductor for issuance of TDS certificate. However, you are not able to get
it so far. You can adopt following sequential approach:
i.
Write
a letter to the Deductor incorporating:
a] The details of payments done and the tax deducted thereon.
b] Provision of Section 203 read with rule 31 which requires the employer to issue TDS certificate by 31st May.
a] The details of payments done and the tax deducted thereon.
b] Provision of Section 203 read with rule 31 which requires the employer to issue TDS certificate by 31st May.
ii.
Keep
the proof of letter issued to the Deductor
iii.
If
despite this the certificate from TRACES is not issued, write a letter to Joint
Commissioner or Addl. CIT of TDS wing who has jurisdiction over the employer (Mumbai
in your case) mentioning the detailed facts elaborated above.
Readers may note that TDS wing of Income
Tax department is working pro actively and very rigorously initiating the penal
proceeding against the defaulters who are illegally withholding the amount of
TDS thereby causing hassles to the deductee.
Second part:
There
is an important instructions issued by CBDT for grant of TDS credit to the
deductee even if the same is not deposited by the deductor. The copy of the
same is re-produced hereunder for the benefit of masses:
“Instructions No. 275/29/2014-IT-(B), dtd.1-6-2015
1. Grievances have been received by the Board from many taxpayers that in their cases the deductor has deducted tax at source from payments made to them in accordance with the provisions of Chapter – XVII of the Income Tax Act, 1961 but has failed to deposit the same into the Government account leading to denial of credit of such deduction of tax to theses tax payers and consequent raising of demand.
2. As per section 199 of the Act credit of TDS is given to the person only if it is paid to the central Government Account. However, as per section 205 of the Act, the assessee shall not be called upon to pay the tax to the extent tax has been deducted from his income where the tax is deductible at source under the provision of Chapter- XVII. Thus, the Act puts a bar on direct demand against the assessee in such cases and the demand on account of tax credit mismatch cannot be enforced coercively.
3. This may be brought to the notice of all the Assessing Officers in your region so that if the facts of the cases so justify, the assessee are not put at any inconvenience on account of default of deposit of tax into the Government account by the deductor.
4. This issues with the approval of Chairperson, CBDT.”
“Instructions No. 275/29/2014-IT-(B), dtd.1-6-2015
1. Grievances have been received by the Board from many taxpayers that in their cases the deductor has deducted tax at source from payments made to them in accordance with the provisions of Chapter – XVII of the Income Tax Act, 1961 but has failed to deposit the same into the Government account leading to denial of credit of such deduction of tax to theses tax payers and consequent raising of demand.
2. As per section 199 of the Act credit of TDS is given to the person only if it is paid to the central Government Account. However, as per section 205 of the Act, the assessee shall not be called upon to pay the tax to the extent tax has been deducted from his income where the tax is deductible at source under the provision of Chapter- XVII. Thus, the Act puts a bar on direct demand against the assessee in such cases and the demand on account of tax credit mismatch cannot be enforced coercively.
3. This may be brought to the notice of all the Assessing Officers in your region so that if the facts of the cases so justify, the assessee are not put at any inconvenience on account of default of deposit of tax into the Government account by the deductor.
4. This issues with the approval of Chairperson, CBDT.”
[The author is a practicing
Chartered Accountant from Nagpur. Readers may send their direct tax related
queries at
SSRPN & Co
10, Laxmi Vyankatesh Apartment
C.A. Road, Telephone Exch. Square
Nagpur-440008
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