My spouse missed filing the ITR before the due date last year. Can she file an updated ITR now?
—G Parthiban
If the original due date for filing the return has passed, a belated return can be filed under Section 139(4) up to three months before the end of the relevant assessment year, i.e., by December 31, 2024 for FY 23–24. Since that deadline has also been missed, your spouse cannot file the return voluntarily unless it is in response to a notice or inquiry initiated by the Income Tax Department. Filing an updated return (ITR-U) under Section 139(8A) is also not permitted in cases where there is no additional tax liability, such as NIL returns or returns with only exempt income.
I filed my income returns for FY23 on July 15, 2023. However, the return has not been processed till now. What should I do now?
—Arvind Pushkar
If you filed your ITR for FY 2022-23 (AY 2023-24) on July 15, 2023, and it hasn’t been processed yet, you should first check the status on the Income Tax portal under “View Filed Returns.” Ensure that e-verification was done. An ITR that is not e-verified is not considered validly filed. If e-verification was done, you can raise a grievance through the e-filing portal under “Grievances > Submit Grievance” or call the CPC Bengaluru Helpline.
As per my father’s will, my brother and I have equal shares in his property. My brother, settled in the US, wants to sell his share. What are the tax implications if I pay him his share now?
—C K Manoj
The sale of the inherited property will be taxable in the hands of your brother as a long-term capital gain, provided the property was held for more than 24 months. In the case of inherited property, the holding period of your father (the original owner) is also included, and the cost of acquisition will be the same as that incurred by your father. The capital gains will be calculated as the sale consideration minus the cost of acquisition and cost of improvement, and will be taxed at 12.5% plus applicable surcharge and cess.
As the buyer of the property from a non-resident (your brother, who is settled in the US), you are required to deduct tax at source (TDS) under Section 195 at the rate of 20% (plus surcharge and cess) on the entire sale consideration, not just on the gains. However, your brother may apply to the Income Tax Department for a certificate for lower withholding under Section 197, which can reduce the TDS liability based on actual capital gains.
The writer is partner, Nangia & Co. Send your queries to fepersonalfinance@expressindia.com