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Rent from house property

Kiran. S (CTO) (745 Points)

09 August 2015

1] I filed IT return [ITR-2] for AY 2014-15 before time and got refund.

2] I had given my flat on rent for all 12 months.

3] I have taken income from rent in OS sheet in "rent from buildings"

instead of "income from House property".

4] Reason for 3 was that i was under the impression that the sheet

"House_property" is only for property with Housing Loans.

5] Now I realised that interest on borrowed capital can be zero

6] i could have got 12k more refund - if I had filled HP sheet bcoz of 30% std deduction

7] My question is whether I can rectify or revise return for Ay2014-15

8] If it is to be revised/rectified what is the detailed procedure.

Thanks

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9 Replies

Z ( ) (2960 Points)
Replied 09 August 2015

Return could have been revised u/s 139(5) till 31.03.15. This situation demands revision of income and is not a mistake apparent from record and hence can not be rectified u/s 154

S.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 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, whichever is earlier :

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Kiran. S (CTO) (745 Points)
Replied 09 August 2015

Now a days they do very fast assesment .

But Reduction of Income is as per Law.

Can I file revised return under 119 [2a] or 119 [2b]

I was Ignorant of law regarding income from House property.

Can Experts including Z throw some light on this.

Z ( ) (2960 Points)
Replied 09 August 2015

You may try making an application u/s 119(2)(b) but however the admissibility of the claim is dependent of factum of the case. How will you prove the genuine hardship is upto you .

For your reference am citing the circular which will help you

SECTION 119 OF THE INCOME-TAX ACT, 1961 - INCOME-TAX AUTHORITIES - INSTRUCTIONS TO SUBORDINATE AUTHORITIES - CONDONATION OF DELAY IN FILING REFUND CLAIM AND CLAIM OF CARRY FORWARD LOSSES UNDER SECTION 119(2)(b)

CIRCULAR 9/2015 [F.NO.312/22/2015-OT], DATED 9-6-2015

In supersession of all earlier Instructions/Circulars/Guidelines issued by the Central Board of Direct Taxes (the Board) from time to time to deal with the applications for condonation of delay in filing returns claiming refund and returns claiming carry forward of loss and set-off thereof under section 119(2)(b) of the Income-tax Act, (the Act) the present Circular is being issued containing comprehensive guidelines on the conditions for condonation and the procedure to be followed for deciding such matters.

2. The Principal Commissioners of Income-tax/Commissioners of Income-tax (Pr.CsIT/CsIT) shall be vested with the powers of acceptance/rejection of such applications/claims if the amount of such claims is not more than Rs.10 lakhs for any one assessment year. The Principal Chief Commissioners of Income-tax/Chief Commissioners of Income-tax (Pr.CCsIT/CCsIT) shall be vested with the powers of acceptance/rejection of such applications/claims if the amount of such claims exceeds Rs.10 lakhs but is not more than Rs. 50 lakhs for any one assessment year. The applications/claims for amount exceeding Rs.50 lakhs shall be considered by the Board.

3. No condonation application for claim of refund/loss shall be entertained beyond six years from the end of the assessment year for which such application/claim is made.This limit of six years shall be applicable to all authorities having powers to condone the delay as per the above prescribed monetary limits, including the Board. A condonation application should be disposed of within six months from the end of the month in which the application is received by the competent authority, as far as possible.

4. In a case where refund claim has arisen consequent to a Court order, the period for which any such proceedings were pending before any Court of Law shall be ignored while calculating the said period of six years, provided such condonation application is filed within six months from the end of the month in which the Court order was issued or the end of financial year whichever is later.

5. The powers of acceptance/rejection of the application within the monetary limits delegated to the Pr.CCsIT/CCsIT/Pr.CsIT/CsIT in case of such claims will be subject to Following conditions:

i.		At the time of considering the case under Section 119(2)(b), it shall be ensured that the income/loss declared and/or refund claimed is correct and genuine and also that the case is of genuine hardship on merits.
ii.		The Pr.CCIT/CCIT/Pr.CIT/CIT dealing with the case shall be empowered to direct the jurisdictional assessing officer to make necessary inquiries or scrutinize the case in accordance with the provisions of the Act to ascertain the correctness of the claim.

6. A belated application for supplementary claim of refund (claim of additional amount of refund after completion of assessment for the same year) can be admitted for condonation provided other conditions as referred above are fulfilled. The powers of acceptance/rejection within the monetary limits delegated to the Pr.CCsIT/CCsIT/Pr.CsJT/CsIT in case of returns claiming refund and supplementary claim of refund would be subject to the following further conditions:

i.		The income of the assessee is not assessable in the hands of any other person under any of the provisions of the Act.
ii.		No interest will be admissible on belated claim of refunds.
iii.		The refund has arisen as a result of excess tax deducted/collected at source and/or excess advance tax payment and/or excess payment of self-assessment tax as per the provisions of the Act.

7. In the case of an applicant who has made investment in 8% Savings (Taxable) Bonds, 2003 issued by Government of India opting for scheme of cumulative interest on maturity but has accounted interest earned on mercantile basis and the intermediary bank at the time of maturity has deducted tax at source on the entire amount of interest paid without apportioning the accrued interest/TDS, over various financial years involved, the time limit of six years for making such refund claims will not be applicable.

8. This circular will cover all such applications/claims for condonation of delay under section 119(2xb) which are pending as on the date of issue of the Circular.

9. The Board reserves the power to examine any grievance arising out of an order passed or not passed by the authorities mentioned in para 2 above and issue suitable directions to them for proper implementation of this Circular. However, no review of or appeal against the orders of such authorities would be entertained by the Board.

Kiran. S (CTO) (745 Points)
Replied 10 August 2015

The Genuine Hardship is for those who have not filed return at all. I have filed return before due date and got refund also and due to ignorance of law took rent receipts in OS sheet instead of House_property sheet. If I take Rent receipt in HP sheet then I get refund of 12K.

Z ( ) (2960 Points)
Replied 10 August 2015

It will also be applicable in your case . Whenever you want to claim refund over an above what has already been granted then also it will be on discretion of CIT to grant you the permission to file return u/s 119(2)(b)

Kiran. S (CTO) (745 Points)
Replied 10 August 2015

I see. Thanks Z sir for your inputs.

It appears that it is not wise to give application for condonation of delay for refund claims.

If it is done online it is Ok. Otherwise who will got to CIT/AO and break head there.

Circular 9 does not mention - fresh returns can be filed. It only mentions Refund claims and carry forward losses.

Can Experts [including Z] enlighten me on this.

Z ( ) (2960 Points)
Replied 11 August 2015

Any claim under the Income Tax Act can be made only through filing of return, that is why its written that provisions of section ...... 139.... will be relaxed.

If you notice the ITR utility, therein you can find colum for return filed u/s , there you can see S. 119(2)(b)

1st you will have to go to CIT then he will direct it to AO and then the return shall be filed u/s 119(2)(b)

That is why I did not recommended it for such sum , chances are very low (I do not see any genuine reason)* and umm it also depends upon charisma , you know like how assessee is able to influence the decision , [you know sometimes their hand get jam while signing so greasing of palms is required so that they can sign]

* For eg. for claiming deduction under chapter IV or VIA , relaxtion will apply

subject to the following conditions, namely:—

(i) the default in complying with such requirement was due to circumstances beyond the control of the assessee; and

(ii) the assessee has complied with such requirement before the completion of assessment in relation to the previous year in which such deduction is claimed

Z ( ) (2960 Points)
Replied 13 August 2015

Am extremely sorry , I misread your Assessment Year
YOU CAN FILE REVISE RETURN TILL 31.03.2016 SINCE YOUR A.Y IS 2014-15 and 1 year therefrom is 31.03.16