Non filling of income tax return
This query is : Resolved
22 May 2017
One of assessee had not filed income tax return for assessment year 2013-14 & 2014-15 as he had started a new business previously filed under salary income. Can now he file return for AY 2013-14 & 2014-15 under 142 1 and will his income be scrutinised as he is a small tax payer?
22 May 2017
he was also having TDs claim but due to no knowledge he didn't file return and lost claim for TDs
03 August 2024
If an assessee has not filed their income tax returns for assessment years (AY) 2013-14 and 2014-15, there are several important points to consider regarding filing, scrutiny, and recovery of TDS claims:
### 1. **Filing Returns for AY 2013-14 and 2014-15**
- **Delayed Filing**: For AY 2013-14 and 2014-15, the regular filing deadlines have passed. Typically, returns for these years can no longer be filed under the normal procedures as the deadline for filing belated returns has also elapsed.
- **Section 142(1) Notice**: Under Section 142(1) of the Income Tax Act, if the Income Tax Department issues a notice to the assessee, they may be required to file the returns as directed. This section allows the department to call for the filing of returns or other documents if necessary for assessment. If the department issues such a notice, the assessee should comply and file the returns as per the notice.
- **Revised or Belated Returns**: Normally, for returns that are overdue, taxpayers could file a belated return under Section 139(4), but this option might no longer be available for AY 2013-14 and 2014-15. The option for filing belated returns under Section 139(4) is usually available until the end of the assessment year plus one year (i.e., till March 31, 2016, for AY 2013-14).
### 2. **Scrutiny of Returns**
- **Scrutiny Process**: Even if the taxpayer files a return under Section 142(1), it can still be subject to scrutiny. The risk of scrutiny depends on various factors, including the nature of the business, the amount of income, and discrepancies in the return. However, being a small taxpayer doesn't automatically exclude one from scrutiny.
- **Assessment Procedure**: If the return is filed under Section 142(1), it will be processed according to the normal assessment procedures. The assessing officer may review the return, and if they have any concerns or require further information, they may issue notices for additional details.
### 3. **TDS Claims**
- **Claiming TDS**: If TDS was deducted but the return was not filed, the claim for TDS cannot be processed because TDS claims need to be substantiated by filing the corresponding return. Without filing a return, the TDS credit is not allowed in the taxpayer's account.
- **Recovery of TDS**: Once the return is filed, the taxpayer can claim the TDS deducted. However, for AY 2013-14 and 2014-15, since the filing window has largely closed, it is essential to check with the Income Tax Department whether any relief or adjustment can be made. In some cases, you may need to appeal or provide explanations to the department.
### 4. **Steps to Take**
- **File Returns**: If you receive a notice under Section 142(1), file the returns as required. Ensure all income and TDS details are accurately reflected.
- **Consult a Tax Professional**: Engage a tax professional or chartered accountant to help navigate the process, address any potential scrutiny, and assist in recovering any TDS claims if possible.
- **Follow Up with IT Department**: If you face issues with TDS claims or need adjustments for past returns, you might need to follow up with the Income Tax Department or seek a formal resolution through appeals if necessary.
### 5. **Preventive Measures**
- **Stay Updated**: Ensure you stay informed about filing deadlines and compliance requirements to avoid such issues in the future.
- **Regular Filing**: File returns on time and ensure accurate reporting of all income and deductions to avoid complications and potential penalties.
### Summary
For AY 2013-14 and 2014-15, filing returns now will likely be through the process outlined under Section 142(1) if the department issues a notice. The returns may be scrutinized, and TDS claims might be difficult to recover if the returns are not filed on time. Seeking professional advice and ensuring compliance with current tax regulations will help manage the situation effectively.
### 1. **Filing Returns for AY 2013-14 and 2014-15**
- **Delayed Filing**: For AY 2013-14 and 2014-15, the regular filing deadlines have passed. Typically, returns for these years can no longer be filed under the normal procedures as the deadline for filing belated returns has also elapsed.
- **Section 142(1) Notice**: Under Section 142(1) of the Income Tax Act, if the Income Tax Department issues a notice to the assessee, they may be required to file the returns as directed. This section allows the department to call for the filing of returns or other documents if necessary for assessment. If the department issues such a notice, the assessee should comply and file the returns as per the notice.
- **Revised or Belated Returns**: Normally, for returns that are overdue, taxpayers could file a belated return under Section 139(4), but this option might no longer be available for AY 2013-14 and 2014-15. The option for filing belated returns under Section 139(4) is usually available until the end of the assessment year plus one year (i.e., till March 31, 2016, for AY 2013-14).
### 2. **Scrutiny of Returns**
- **Scrutiny Process**: Even if the taxpayer files a return under Section 142(1), it can still be subject to scrutiny. The risk of scrutiny depends on various factors, including the nature of the business, the amount of income, and discrepancies in the return. However, being a small taxpayer doesn't automatically exclude one from scrutiny.
- **Assessment Procedure**: If the return is filed under Section 142(1), it will be processed according to the normal assessment procedures. The assessing officer may review the return, and if they have any concerns or require further information, they may issue notices for additional details.
### 3. **TDS Claims**
- **Claiming TDS**: If TDS was deducted but the return was not filed, the claim for TDS cannot be processed because TDS claims need to be substantiated by filing the corresponding return. Without filing a return, the TDS credit is not allowed in the taxpayer's account.
- **Recovery of TDS**: Once the return is filed, the taxpayer can claim the TDS deducted. However, for AY 2013-14 and 2014-15, since the filing window has largely closed, it is essential to check with the Income Tax Department whether any relief or adjustment can be made. In some cases, you may need to appeal or provide explanations to the department.
### 4. **Steps to Take**
- **File Returns**: If you receive a notice under Section 142(1), file the returns as required. Ensure all income and TDS details are accurately reflected.
- **Consult a Tax Professional**: Engage a tax professional or chartered accountant to help navigate the process, address any potential scrutiny, and assist in recovering any TDS claims if possible.
- **Follow Up with IT Department**: If you face issues with TDS claims or need adjustments for past returns, you might need to follow up with the Income Tax Department or seek a formal resolution through appeals if necessary.
### 5. **Preventive Measures**
- **Stay Updated**: Ensure you stay informed about filing deadlines and compliance requirements to avoid such issues in the future.
- **Regular Filing**: File returns on time and ensure accurate reporting of all income and deductions to avoid complications and potential penalties.
### Summary
For AY 2013-14 and 2014-15, filing returns now will likely be through the process outlined under Section 142(1) if the department issues a notice. The returns may be scrutinized, and TDS claims might be difficult to recover if the returns are not filed on time. Seeking professional advice and ensuring compliance with current tax regulations will help manage the situation effectively.
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