I have a partnership firm which is in loss. My income tax lawyer is saying to convert partnership into proprietorship, and for the time being file income tax under my personal tax to save income tax.
If i have not filed personal income tax for past 7 years and then if i file income tax now, will i lose any benefit in future if i apply for loan? Please advice.
My contact number : 79759251**
With the amendment of Finance Act 2016, from AY 2017-18 (FY 2016-17), Income Tax belated returns should now be filed before the end of the relevant Assessment Year only.
For example, return for FY 2016-17 can be belatedly filed on or before 31-03-2018only.
Therefore, ideally, 31st March, 2018 is the deadline for all the belated tax return filers for the Assessment Years 2016-17 & 2017-18.
However, the income tax department can allow taxpayers to file returns post the deadline for specific cases. You can File a Condonation of delay request.
These are the parameters based on which applications can be accepted or rejected by the income tax department:
a) The claim is correct and genuine
b) Case is based on genuine hardship on merits
c) Income is not assessable in the hands of any other person under the Income Tax Act
d) The refund has arisen as result of excess tax deducted or tax collected at source, advance tax or self-assessment tax.
The time limit to file such application is six years from the end of the assessment year for filing the return. (Assessment year is the year immediately following the financial year). Therefore, for such taxpayers who have missed the deadline of March 31, 2018, can file such application by 31 March 2023 (for FY 2015-16) and 31 March 2024 (for FY 2016-17) . In case of belated tax refund, no interest will be paid by the department to you.
Related Article : How many Previous Years’ Income Tax Returns can be filed after Due date?
Suggest you to kindly consult a CA.