The due date for filing the return of income is stated in Section 139(1) of the Income Tax Act, 1961. As per the section 139(1), the due date for filing of income tax return for the Assessment Year 16-17 was 31st of July, 2016 and 30th of September, 2016 for the various types of the assesses. However, the above mentioned due dates of filing of return i.e. 31st of July, 2016 and 30th of September, 2016 were extended to 5th August, 2016 and 17th October, 2016 by the CBDT. Where the return of income has not been filed as per the section 139(1) or within the above mentioned due dates even then the same return can be filed as a belated return of Income Tax under 139(4) of the IT Act.
Amendment to Provisions for filing Belated Return of Income Tax
In the previous year, the Finance Act, 2016 amended the section 139(4) due to which some issues arose whether the last date of filing belated income tax return under 139(4) as a belated return for the AY 16-17 is 31st March 2017 or 31st March 2018.
The Existing Provisions of Section 139(4) of the IT Act (Before amendment): These are mentioned as under:
Any person who hasn’t filed his income tax return within the time prescribed under 139(1) of the IT Act, or within the time permitted under a notice issued under section 142(1) of the IT Act, may furnish his income tax return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
Time limit for filing belated return of Income Tax
As per these provisions of the Act, the belated return of income tax can be filed within one year from the end of the relevant assessment year. The AY 16-17 will expire on 31st of March, 2017. Therefore, one year from the end of AY 16-17 will expire on 31st of March, 2018. As per the existing provisions of section 139(4) (before amendment), the belated income tax return for the AY 16-17 can be filed up to 31st of March, 2018.
Amendment vide Finance Act 2017
With the effect of Amendment made In Section 139(4) by Finance Act, 2017: Section 139(4) of the IT Act has been amended. The amended provisions are as follows:
With effect from 1-4-2017, any person who hasn’t filed his return of income within the time permitted under section 139(1), may furnish his return of income for any previous year at any time before the expiry of the relevant assessment year or before the completion of the assessment, whichever is earlier.
Effect of the Amendment on filing of Belated Return of Income Tax
Due to this amendment, the belated income tax return under section 139(4) of the Act, can be filed only up to the end of the assessment year, as the time of filing the belated return has been reduced by 1 year. The aforesaid amendment will be effective from 01.04.2017. The same has been specifically stating that the amendment is applicable from the AY 17-18. Therefore, the amended provisions of the sections of the 139(4) may not be applicable for the AY 2016-17. Therefore, 31st of March, 2017 might not be the last date for filing of belated income tax return for the AY 2016-17. Therefore, the last date for the same may be only 31st March 2018.
Income Tax Department did not issue any reminders for AY 2016-17
Apart from the above, it is also significant that in many cases assessee have received the reminder from Department for filing the return of income. These reminders were sent only for the AY 2015-16. If the coming date that is 31st of March, 2017 is also expected to be the last date for filing of the belated income tax returns for the AY 2016-17 then the Income Tax Department might have also issued such reminders to the assesses for the AY 2016-17 also.
Conclusion: Therefore, reasonably it may be considered that the amendment mentioned above may not be applicable for filing the belated income tax returns for the AY 2016-17. Thus, the last date for filing of belated income tax return for the AY 2016-17 might be 31st of March, 2018 and not 31st of March, 2017.
However, it is likely that the Central Board of Direct Tax should also issue the certain clarification on such amendment made via Finance Act,2016 to provide relief to the assesses from inconveniences.
CBDT Answer In FAQ:
“Can an income tax return be filed after the due date? “.
With the amendment made by the Finance Act, 2016 in the provisions of section 139(4) of the Act shall be applicable to the belated return for AY 2017-18 and onwards and not to belated return for AY 2016-17. Therefore, the last date for filing of belated returns for the AY 2016-17 shall be 31st of March, 2018 and not 31st of March, 2017.
Related Read- Consequences of not filing the return of income tax in time
