Filing Past Years Income Tax Returns: Check Benefits and Other Details

People are able to submit returns for prior years. Just the two years prior to the current financial year for which the returns must be submitted may be used in this manner. Taxpayers have a two-year window in which to file their taxes. Just the two years previously to the current financial year for which returns must be filed are available for those who wish to file their income tax returns for past years. It is possible to file tax returns for the fiscal year 2017-18 up until the end of the next fiscal year (2019-2020) if you are wanting to do so. This indicates that the person has a two-year window in which to file the taxes. In this situation, the deadline for filing returns for the fiscal year 2017-18 is March 31, 2020. Thus, how do you now submit income tax returns for the previous years?

Benefits of Filing Income Tax Returns of previous years

• If borrowers have already filed their tax returns, it will be easier for banks and other financial institutions to accept their loans. The loan application process gets more streamlined and expedited.
• Providing previous tax returns is another way to demonstrate income. Tax returns are admissible paperwork that may be shown when a person's income has to be confirmed.
• Those who have filed their tax returns for past years will also find it simpler to invest or engage in stock or share trading because financial institutions favour individuals who have their returns in order.
• If a person has paid more in taxes than their taxable responsibility for the previous years, they may ask for a refund of the excess tax that was paid in those years.
• Once people have submitted their tax returns, it will also be less difficult for them to get overseas travel permits. While applying for a visa, you must provide proof of your financial stability in the form of tax returns.

Implications of Failing to File Past Income Tax Returns

• Those who missed the deadline to file their income tax returns for earlier years will need to pay interest on the amount of their unpaid taxes when they file their returns at a later date.
• A person cannot carry over losses from previous years, whether they were monetary or stemmed from a loss of capital, to subsequent tax years.
• Anybody who missed the deadline to submit their tax returns for earlier years would be subject to a Rs 5000 penalty from the taxation authorities.
• The failure to file tax returns, the concealment of funds, or the failure to reveal income from earlier years may also result in legal action being taken by the income tax authorities.
• People may find errors in their prior years' returns when they decide to submit their taxes for those years.
• If past-due income tax returns are submitted later than expected, the processing of the prospective tax refund for the individual may be delayed.

Can you now submit ITRs for the last three years?

If your prior two ITRs weren't filed on time, you can still file an ITR-U. You may file your typical ITR for the current year.

What happens if I submit my income tax return beyond the 139(1) deadline?

If you fail to file your income tax return by the deadline set out in section 139(1), you may still do so but will be subject to a late filing penalty of up to Rs.5,000. Moreover, interest on the tax debt will be your responsibility to pay (if any).

How to File ITR for past years?

• Visit the Income tax department's official website
• Use your ID (often your PAN) and password to log into your account.
• Tap on forgot password to reset your password, if lost
• Register yourself if this is your first time logging in.
• Choose "e-file" from the drop-down option.
• Select income tax return and then tap on file income tax return
• Choose the assessment year.
• Continue by choosing the proper form and filling the necessary information.