Income Tax Return 2019: Wrong Income Tax Return Filed? Here is why it will be treated as invalid filing of ITR

By: |
Updated: July 31, 2019 6:48:44 PM

Income Tax Return 2019: Any mistake in the income tax return may be rectified by filing a Revised Return if one has filed the Original Return within the due date.

 Which ITR form, Income Tax Department, defective income tax return, ITR form, Original Return, Revised Return, income tax return, income tax return 2019, income tax return 2019-20, income tax return filing last date, income tax return last date, income tax return 2019-20 last date, how to file itrITR Filing 2019-20: For the assessment year 2019-20, the last date for ITR filing was 31 July which has been extended till August 31

Income Tax Return 2019-20: Filing income tax return (ITR) is mandatory for all those who have income above the basic exemption limit under the Income Tax Act, 1961. For the assessment year 2019-20, the last date for ITR filing was 31 July which has been extended till August 31. However, several taxpayers leave it to the fag end of the due date for filing of ITR. There is nothing wrong in it, but the probability of committing a mistake, missing out on entering an important figure related to income or deduction or even making an oversight while filing ITR may not be ruled out. One may even file a wrong ITR form instead of filing the right Form based on income source. Any such mistake may still be rectified by filing a Revised Return if one has filed the Original Return within the due date.

Defective ITR

There could be several factors that may lead to an ITR being treated as defective. However, one mistake that could prove costly is choosing the wrong ITR form while e-filing or filing ITR in paper form. If you are not sure about which ITR form to choose for filing returns, make sure to choose the right one. Choosing the wrong ITR form will make the ITR defective and may even lead it to being treated as a invalid return. “It is critical to choose the correct ITR form as use of incorrect form would result in the return being treated as defective. Though, the assessee shall be given an intimation u/s 139(9) in order to rectify the defect within 15 days of the intimation so given. The time limit may be extended by the assessing officer at his discretion, on an application made by the assessee. If the defect is not so rectified then the return shall be treated as invalid return and the same shall have effect as if no return was filed by the assessee,” informs Dr. Suresh Surana, Founder, RSM Astute Consulting Group.

How to choose ITR form

There are several factors on which the type of ITR form needs to be picked up. “Applicability of ITR form depends on multiple factors. Factors to be kept in mind are residential status, nature and amount of incomes earned by taxpayer, residential status of taxpayer, whether any foreign assets held by taxpayer, any agricultural income earned, in case of individual whether individual is director in a company or has invested in unlisted equity shares, any capital gains earned, etc.” says Dr. Surana.

The ITR forms for the assessment year 2019-20 (financial year 2018-19) are ITR-1 Sahaj, Form ITR-2, Form ITR-3, Form Sugam (ITR-4), Form ITR-5, Form ITR-6 ,Form ITR-7 and Form ITR-V. “ITR Forms are divided on the basis of source of income of the individual. For example, if an Individual has salary and one house property along with Income from other source, ITR 1 shall be the appropriate form. Whereas in case where an Individual has Salary income more than 50 lakh, ITR 2 shall be filed. In case of capital gains also ITR 2 shall be filed. For Business or profession, ITR 3 or ITR 4 will be filed on whether Books of Accounts have been maintained or not,” informs Heena Arora, Finance & Marketing Head, All India ITR.

Which ITR Form for salaried

For most salaried taxpayers with income from salary and a bank savings account that earns interest, ITR 1 SAHAJ is the form to be filled up. Even if the salaried individual has a house property, which could in possession or without possession, the same form i.e. ITR 1 SAHAJ is to be filed up. However, if the property is not in possession, here is what Archit Gupta, Founder & CEO ClearTax informs, “No deduction for the interest and principal payments are allowed during the period of construction.”

Essentially, the ITR 1 Sahaj is to be filled up by a resident individual under these three conditions:

When the total income for the assessment year 2019-20 is not exceeding Rs. 50 lakh and who has income under the following heads –
(a) Income from Salary/ Pension; or
(b) Income from One House Property; or
(c) Income from Other Sources.

“However, this is further subject to certain conditions such as the individual has not invested in unlisted equity shares or has brought forward losses or is not a director in any company. If any of the above conditions are not fulfilled then ITR 2 has to be filed,”, says Dr. Surana. Therefore, choosing the right ITR Form is equally important to complete the assessment process with the Income Tax Department.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Deductee can claim credit on TDS on sale of property on basis of Form 26AS
2Income Tax Return 2019: Unverified Return can no longer be used as proof of having filed ITR
3ITR Filing for AY2019-20: 4 tax filing mistakes which can cost you dearly