Can I submit previous year's Income Tax Returns?

Income Tax Returns

Income tax returns are necessary to be filed by every individual who is earning an amount of income. In the modern world, there has been a gradual increase in technology. We can do everything by just sitting at home through the online procedure.

Now when we talk about Income Tax Return filing, it has also become an easy way because it can be filed online. Despite many advantages of online procedure, people fail to remember to file their return. And at the end the question arises that can we file income tax return of previous year?

The answer to this question is “Yes”. You can file your income tax return of the previous year also. Don't panic, an individual can file its return until the completion of two financial years from the end of financial year when the return is to be filed. To learn this concept more clearly let's take one example in the financial year of 2016-17, the return of previous two year that is 2015-16 and 2014-15 can be paid. A person cannot file its return for more than 2 previous financial years.

Drawbacks of late filing of return

Under section 234A, 234B and 234C penal interest may be applicable to those persons who are late filing their returns.

Delayed returns will not be able to get revised.

A person will not be able to carry forward their losses for those years when the return was not filed.

Advantages of filing return on time

It becomes a person income proof which can be shown in various circumstances.

Loans can be given easily to those who are filing their return on time.

The amount of taxes that you pay comes in the hand of government who further uses that money for the betterment of you people only so it is your obligation to pay taxes.

For various businesses filing of income tax is necessary to achieve certain tenders.

If you file ITR online on time then you look good on financial books which make it easy for you to open bank accounts and to trade in shares or stocks.

Income tax return provides you with good financial worth in eyes of foreign countries. This will help you to apply for visa and passport.

Disadvantages of not filing your return

If a person doesn't file their return on time then he/she has to pay interest on it.

You cannot carry forward your losses to the subsequent years if you don't file your return on time.

ITR online has made easy for the world to file their return. It doesn't take much time and efforts.