There are many who might not have filed last year returns and the question is can they file their last year tax returns this year? What is the process to do so?
The good news is yes you can file your income tax returns of last year and here are more details.
At any point of time you are eligible to file two tax returns – One for the present assessment year and one for the previous assessment year.
So as of today you can file returns for present assessment year 2015-16 and last Assessment Year 2014-15 (FY 2013-14).
The picture below gives you the details:
Tips for filing last year return:
- The process of filing return does not change irrespective of year in question
- You will need to use ITR Forms for the Assessment Year you are filing tax return for
- It’s good idea to file return for earlier year followed by present year. This is sequential way and also you can take advantage of earlier year losses.
Impact of late filing of tax return:
Here is a list of benefits you miss on in case you skip the August 31 deadline:
- 1% Monthly Late payment fee on tax due: In case after adding up all the TDS and advance taxes, if there is any tax payable from your side, you will need to pay monthly 1% late fee on the amount due for each month of delay.
- Late refund: if you file your ITR late, you will also get your excess tax paid refunded late. This is a loss as you could have put to the money to better use and you obviously loose on the interest part.
- Cannot revise your ITR: You cannot file a revised return in case you filed your original ITR late. This can be a major drawback if you find some error on a later date or just forgot to take advantage of some tax exemption.
- Cannot carry forward your losses: you cannot carry forward following losses in case of delayed filing:
- Speculation loss,
- business loss excluding loss due to un-absorbed depreciation and capital exp on scientific research,
- short term capital loss,
- long term capital loss,
- loss due to owning and maintenance of horse races
However you can still carry forward loss from House property. The above list is not comprehensive and may impact you the wrong way in case of late filing of tax returns.