ASK TAX GURU: 'How to file delayed ITR?'

Do you have any personal income tax query?

Mihir Tanna, Associate Director, S K Patodia & Associates (external link), a chartered accountants firm that offers consultancy, audit and tax services, will answer your queries.

Please mail your queries at getahead@rediff.co.in with the subject line 'Ask Mihir' and Mihir Tanna will answer all your tax queries.

Here's Mihir's take on how to deal with tax filing if you have missed your July 31, 2022 deadline.

Dipak Kumar Das: My daughter is in the UK for the last one year and likely to continue his stay on an employment visa. Thus she becomes an NRI while filing tax returns in India. She does not have a salary income in India. Her earnings are from savings bank interest and fixed deposits. Total income is less than Rs 2.5 lakh in India.

Is she required to file an IT return in India to get an IT refund (TDS amount FD)? What is the procedure?

Mihir Tanna: As mentioned in my article, if she is not satisfying other conditions of filing Income Tax Return and if the total TDS is less than Rs. 25,000 then she is not required to file Income Tax Return. However, if she wants to claim refund of TDS for FY 2022-23, she will be required to file Income Tax Return at www.incometax.gov.in (external link).

Manoj Mahato: Dear Sir, I have missed to file my individual ITR filing for the Asst. Year 2021-22 (FY: 2020-21) having refund of TDS approximately Rs 25,000.

Is there any way to file the delayed ITR for the year ended 31.03.2021 (AY: 2021-22)? If possible kindly advise how to file it.

Mihir Tanna: You may file applications for condonation of delay in filing returns claiming refund as per provisions of Sec 119(2)(b) of the Income-tax Act. As per Circular 9/2015, the Principal Commissioners of Income-tax shall be vested with the powers of acceptance/rejection of such applications/claims.

The powers of acceptance/rejection of the application will be subject to conditions like verification of income/loss declared and/or refund claimed and case is of genuine hardship on merits.

Once your application is accepted and order is passed by Principal Commissioners of Income-tax u/s 119, you will be able to file Income Tax Return at www.incometax.gov.in (external link).

Deepak Suri: Dear Sir, invested Rs 20000 in long term infrastructure bonds in the year 2011 for a period of 10 years under cumulative option. The bonds matured in Dec 2021 and I received Rs 44,624 after deduction of TDS of Rs 2,736. An amount of Rs 27,360 is being shown in my AIS as income from other sources.

Mihir Tanna: I have been showing the interest accrued every year on this investment in my IT return for the past 10 years as interest income. However now this year I am again required to show the lump sum amount as income and pay tax on it since it is being reflected in my AIS and 26 AS.

IS THERE ANY WAY THAT I DON'T HAVE TO PAY DOUBLE TAX since I have already paid tax as accrued interest over past 10 years? How to reflect same while filing IT? I have filed ITR 2.

Mihir Tanna: As per income tax provisions, interest income can be offered on accrual basis (i.e. interest earned but receivable at later stage) or cash basis. But once you start offering income under one method, you cannot change.

In your case, Rs 24,624 is interest earned during tenure of 10 years. If you have offered interest income every year (even if not received) for FY 21-22, you have to offer interest earned between April 1, 2021 and maturity date of December 21.

Amount offered in Income Tax Return can differ from amount appearing in AIS, if income is offered correctly as per Income Tax provisions and appropriate reply should be filed in AIS feedback option.

Rajesh Shirke: Dear Sir,

With regards to my ITR, I have a tax liability as per Form 16 after submitting my tax saving details. However, I would like to know if I approach a qualified CA will I be able to save some amount of Tax by calculating other expenses which we incur for livelihood?

Mihir Tanna: Most of the expenditure incurred for livelihood are personal in nature and not allowed as deduction. However, you may approach CA for appropriate guidance for deduction/exemption allowed as per Income Tax provisions.

Certain deduction/exemption is not reportable in Form 16 like deductions of interest earned in saving account, donation to charitable trust, deductions on rent paid (if HRA is not given by employer) etc.