What is the status of your return for AY 15-16?
Hello. My name is Jhansi. I am 23 years old. I have incorrectly submitted tax returns for the AY 2016-17. I mentioned the AY as 2015-16 when I should have chosen AY as 2016-17. These returns are processed by IT department. Now, I have got email from IT department saying I need to file returns for AY 2016-17. When I contacted our family friend who is CA, he advised to file the returns for AY 2016-17. That means, I have filed the same returns for the year AY 2015-16 and AY 2016-17. I had no source of income in the year 2014. My income generation started from July 2015. I have no outstanding taxes. My income in the financial year July 2015 - Apr 2016 falls within tax free slab. My question is : Is submitting same returns twice [For AY 2015-16 and AY 2016-17] legal? Will I face any problems in future? If yes, how to rectify this problem?
What is the status of your return for AY 15-16?
Hello Bharat. The status according to Income tax website is "ITR Processed" for the year 2015-16.
With income shown below threshold limit, I don't foresee any complications in the future. It would probably go unnoticed.
First thing as per the tax laws, it is mandatory for you to file the tax return only when your income exceeds the basic exemption limit that is INR 2.5 lacs and there is some tax liability in your name. If not, you may ignore the same and submit the response on online tax portal that your income was below taxable limit.
First of all there is no compulsion to file tax returns since your income is below the taxable threshold. Having said that, please be careful in future as these mistakes can unnecessarily cause harassment to you.
As of now, you can respond in the IT portal that your income is below taxable threshold and you need not file the return. As far as the previous years return is concerned you can ignore as of now as it may go unnoticed. If there is a query you will need to explain the mistake.
Hope this clarifies.
See you have made two mistakes:
1. Filed incorrect return for AY 2015-16
2. Not filed return for AY 2016-17
Now, you have the opportunity to correct only your second mistake. You can correct first mistake.
So, immediately file the return for AY 2016-17. Be it same with the last year.
As you said your income falls under minimum slab, then file the return irrespective of you have already filed the same taking wrong AY. If taxes have been paid then that would have been issue.
Is the Income for A.Y. 2016-17 is appearing in Form 26AS or TDS certificates issued by the person who made payment to you in the F.Y. 2015-16?. For A.Y. 2016-17, you can substantiate the income from Form 26AS or Form 16/16A.
For A.Y. 2015-16, you can substantiate the same by same Forms if issued otherwise there is no problem as you have non-taxable income in that A.Y. 2015-16. Further you can submit bank statement as an proof for non-taxable income if asked by the department.
There is no other option, your return has been processed and the tim limit for revsing the return has been passed.
You required to file the ITR if your Total Income exceed the amount which is not chargeable to tax. Which means if your Income for F.Y. 2015-16 was more than Rs. 2.5 Lacs you are required to file the return for that year.
Now you have filed the same data in your previous year's ITR. Since you have reported more Income than the taxable income there is nothing to worry about on the part of Department. However, if you have paid taxes in that year then this tax outgo is your loss as you can't claim for refund of that amount. Now if there was any taxable income then you will have to pay tax again for FY 2015-16 also.
Rectification doesn't seems possible and the only resort is to file the return for FY 2015-16 before 31st March, 2018.
Since you have filed the same return for two years and the same has been processes (as per status mentioned by you) there is nothing much you can do about this but to unnecessarily invoke the IT Officers and have a look at your case. Since the taxable income is not of very big size and returns are already processed, advisable is to keep silent about this.
However, in any case if you want to withdraw the ITR for AY 2015-16, you will have to initiate a communication online and present your case that ITR for AY 2015-16 was a clerical error and hence needs to be withdrawn.
As far legality is concerned, definitely error has been committed, and the same needs to be rectified.
You have no option but to file the return for AY 2016-17 correctly. Unfortunately, the incorrect return for AY 2015-16 cannot be even revised now. Leave it as it for now.
M.Com., CA, LL.B
Yes, you can file the same return again for the correct assessment year.
The problem with your wrong return is that if in case you have claimed any TDS, then the returns will not match with 26AS and the Department may send you a demand notice.
You shall have to go and explain them your case or apply for rectification in case that happens.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
1. As you mentioned that your income was below the taxable limit,you have option to file return but its not compulsory.
2. As return for AY 2015 -16 has been processed ,you cannot revise it now.
3.You will be in NO trouble even if you file the return for AY 2016-17 with same data.
4.You can answer on online portal with valid reason(mentioned above) for not filling return of Ay 2016-17
But It is always advisable to file a return .
You Can revise the earlier return of 2016-17 till 31-03-2018. and File 2017-18 return correctly . last date is 31-03-2018.