Do you know how to File Prior Year Tax Returns?

 Individuals have the option of Online Tax Filing Services India for the past years. This is only possible for the two years prior to the current financial year for which returns must be filed. Taxpayers have a two-year window in which to file their returns. Tax HelpDesk offers you a wide array of Income Tax and GST related services including bookkeeping, income tax consultation and GST Consultation.

Individuals who want to file their income tax returns for previous years can only do so for the two years preceding the current financial year for which they must file. If a person wants to file their tax returns for the fiscal year 2017-2018, they will have until the end of the fiscal year 2019-2020 to do so. This means that the individual has a two-year window in which to file the taxes. In this situation, the returns for the financial year 2017-18 must be filed by March 31, 2020.

Benefits of filing past year income tax returns

1. LOANS- Individuals who have previously submitted tax returns will have an easier time getting their loans approved by banks and financial organizations. The loan application process becomes more efficient and straightforward.

2. PROOF- Filing previous years' tax returns also serves as proof of income. Tax returns are legal papers that can be filed whenever an individual's income has to be verified.

3. INVESTMENTS- Individuals who have filed their tax returns for previous years will also find it easier to make investments or engage in stock or share trading, since financial institutions favor those who have done their taxes correctly.

4. REFUNDS-  If an individual has been taxed more than his or her taxable liability in previous years, he or she may be eligible for a refund of the excess tax paid.

5. TRAVEL- Individuals who have filed their tax returns will also have an easier time obtaining visas for international trips. Tax returns serve as proof of financial responsibility, which is required when applying for a visa.

Things to Consider Before Filing Tax Returns from Previous Years

• Losses from the sale of any asset (capital losses) cannot be carried forward to the next year. Any loss on the sale of a house or other residential property, on the other hand, is exempt from this provision.

• Individuals who file their past income tax returns within one financial year of the relevant fiscal year are not subject to any penalties.

• Individuals who fail to file their past income tax returns within two financial years, but within one financial year of the relevant financial year, would be subject to a Rs 5,000 penalty.

• A 1% penalty interest will be charged on any income tax returns not paid by the due date.

• If you don't pay your advance tax on time, you'll be charged 1% per month in interest.

• Individuals who filed returns in previous years are still entitled for any remaining tax refund.

Income Tax help Desk is your perfect guide to all the GST and Income tax related terms and services. We offer the most convenient online tax filing services in India.