Catch up on Missing ITR Filings: Options for Belated Returns and ITR-U Explained
Inquiries Regarding Loans: Filing Income Tax Return After Deadline Exceeded Is Prohibited
Hey there! Planning to tackle a tricky tax dilemma? Let's dive in!
According to the situation, your spouse missed submitting the ITR on time last year. Can she file an updated return now?
No, unless there's an additional tax liability, your spouse can't file an updated ITR (ITR-U) voluntarily. This is because of Section 139(8A) in the Income Tax Act. In cases where the original return wasn't filed or there's no additional tax liability, like NIL returns or those with only exempt income, filing an updated return (ITR-U) is a no-go[1][4].
However, if the original return wasn't submitted, a belated return can still be filed under Section 139(4). This must be done within three months before the end of the relevant assessment year, which for instance would be by December 31, 2024 for FY 23-24[4]. But, if this deadline gets missed as well, your spouse can't file the return voluntarily unless it's in response to a notice or inquiry from the Income Tax Department[4].
Now, say you've filed your ITR, but it's still not processed. What next?
First, head to the Income Tax portal and check the status under "View Filed Returns". Make sure e-verification was done, as an unverified return isn't considered validly filed[2]. If verification has been done, submit a grievance through the e-filing portal or call the CPC Bengaluru Helpline for assistance.
What about the tax implications when selling inherited property?
The transaction will be taxable as a long-term capital gain for the seller, provided the property was held for over 24 months[3]. In cases of inherited property, the holding period of the original owner is also considered and the cost of acquisition will be the same as that incurred by the original owner[3].
As the buyer, you're required to deduct tax at source (TDS) at a rate of 20% (plus surcharge and cess) on the entire sale consideration. But, the seller can apply for a certificate to lower the TDS liability based on actual capital gains under Section 197[3].
Hope this clears things up for you!
[1] ITR-U filing rules[2] E-verification guidelines[3] Capital gains tax on inherited property[4] Belated return guidelines
Dabbling in personal-finance matters, it is important to understand that when dealing with inherited property, the transaction may incur capital gains tax due to the long-term nature of ownership.
Moreover, in the realm of defi and finance, understanding the market implications of timely filing personal-finance documents, such as tax returns, can significantly impact one's financial standing. For instance, missed ITR filings can be rectified by filing a belated return, but only within certain deadlines.
