Income tax return

Dear Chirag,

A assesse can file a belated return within two years from the end of the financial year that would mean that a person can file his return related to FY ended 31st March 2010 upto 31st March 2012 but not prior to that so same in case of your client it can only be filed now for FY ended 31st March 2010. A person filing belated return looses the right to carry forward or sset of losses. So in your case the loss or profit on sell off cannot be now carried forward. At most you can get his return filed for Financial year ended 31st March 2010 by 31st March 2012. This would involve interest charge of 1% per month if any amount is payable as per the return from the date the return was due to be filed.

All the wanting retuns will have to be filed along with the return in which the slaes transction took place. Non-deposit of tax, if due, in the relevant year of transaction may call for appropriate penalty to be levied by the AO, which he would have to deposit to regularise his income. Otherwise, the income can be treated as unaccounted black money, which may attract severe punishment later.

hope you are satisfied with the answer now ..

All the best