AMA: Belated/Revised Income Tax Return

Hey there! :wave:

Missed filing your ITR? File a Belated Return before 31st May 2021 and get a refund for the excess tax credit.
Note: Due to Covid 19, the due date to file Belated/Revised ITR for FY 2019-20 (AY 2020-21) is extended from 31st March 2021 to 31st May 2021.

Missed reporting or misreported your income? Rectify it by filing before the FY ends.

In case you have any queries regarding filing the Belated/Revised ITR, feel free to drop them below and we will be happy to help!

Budget 2021 Update:

According to Budget 2021, the due date to file a belated/revised return is proposed to be brought done by 3 months. So now the due date to file belated/revised ITR will be December 31 instead of March 31 of the assessment year

To understand more about Revised return, please refer to this article :point_down:

To understand about Belated return, refer to :point_down:

Hey @TeamQuicko

Can I file a revised return even after I have received a refund?

Is it mandatory to file ITR if I incurred losses in Trading?

Hey @HarshitShah

Yes, you can revise your return and carry forward the trading losses even if ITR is processed and refund is received.

Hope this helps!

Hey @HarishMehta

Yes, ITR is mandatory to file when you had done transactions in the respective financial year. If there are losses, you don’t have to pay Income Tax, but transactions have to be reported in ITR.

Hey Team, do I need to e-verify Belated Return??

Hey @TanyaChopra

Yes, you need to e-verify the Belated Return filed after the due date. It will not be processed by the IT Department unless it is e-verified.

You can refer to the below article to understand how to file and e-verify Belated ITR.

Do let us know in case you have any further queries!

Can I file a Revised Return for a Belated Return filed after the due date? Please help!

Hey @Shweta_Saini

Yes. As per the amendment in Budget 2016, you can now file Revised Return u/s 139(5) for a Belated Return u/s139(4) from AY 2018-19.

Hope this helps!

For how many years can I carry forward losses?

Hey @Rakesh_Sharma

Speculative Business Losses can be carried forward for 4 years and Non-Speculative Business Losses and Capital Gains Loss can be carried forward for 8 years.

Hope this helps!

Hey Team, good day!

What are the consequences if I do not show Trading Transactions in ITR?

Thanks in advance!

Hi @riya_gupta,

There is an exchange of data between the broker and the ITD. Even if you do not show in ITR, the ITD has a watch on the transactions. You might receive a notice from the ITD for the discrepancy between data with ITD and reported data in ITR. This may result in penalties.

Hello, So if I file a revised return, I’ll be eligible to carry forwarding losses. When can i set them off. and also if are any other benefits I am not aware off?
I am new to filing returns hence such basic questions. :sweat_smile:

Hey @Niraj,

Carry forwarded losses can save you from paying heavy taxes in the future. For eg. If you fall in the 30% tax bracket, for every profit you make in the derivative market, 30% is the tax rate. Instead, if you have carry-forward losses from previous years, you have to pay tax only on the balance amount after the set-off of losses.

Can I carry forward trading losses in case of a revised return?

Hi @Joe_Fernandes,

Yes, losses can be carried forward for a specific period as mentioned in the Income Tax Act, in case you have filed an original return within the due date.

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@Nireka @Ridhima_Sharma
I filed my return within the due date and received a correction request from the IT department for a transaction I missed showing. Upon filing a revised return on March 31, 2022, I received a notice today that I cannot carry forward the current year’s loss. I already showed the losses in the original first return and showed the same in revised ITR too. Sharing exact notice wordings below:

Particulars: In Schedule Part B-TI, Taxpayer cannot carry forward current year loss except House Property loss if return is filed after the due date allowed u/s 139(1)

Please advise, I’ve to submit a response to this query

Hey @Sakshi_Shah1, can you help with this?

Hey @Sahil_1186

If you have filed the original ITR u/s 139(1) before the due date, there is nothing to worry. You can carry forward the loss even if the ITR was revised. This looks like an error from the end of income tax department. They have sent system-generated notices to many taxpayers with the same query. You should submit a response to the tax notice from your account on the income tax website requesting them to re-process the ITR and allowing carry forward of loss since the original ITR u/s 139(1) was filed within the due date.

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