ITR Returns from FY 2005 onwards

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Hi Pankaj,

I'm employed since NOV 2005 (FY 2005-2006) in an IT company in Pune. I have not filed any returns from FY 2005-2006 because of lack of financial matters.

I have a home loan from OCT 2006 (FY: 2006-2007). I have not declared this home loan (principal+interest components) in company due to which higher amounts of tax was being deducted from my salary.

Can I file the return for all the years from FY 2005 onwards now in JULY 2011? Once I file a return, will I get the deducted tax back? Do I have to pay penalty for not filing on time?

If yes, please guide on how to go about it as the online return system is not accepting prior to 2 years i.e., for FY 2008-2009.

Regards, ~Raksha

2 Answers

As per sec 139(4): You can file belated return before the end of one year from the end of relevant assessment year. i.e for FY 2009-10, you can file belated return till 31 March 2012. The finanacial years prior to FY 2009-10, you can not do anything now.

Now penalty: 1. Penal interest as per sec 234A 2. u/s 271F, A penalty of Rs 5000 may be imposed if return is filed after the relevant assessment year which is your case.

For FY 2010-11, You should file return now and last date is 31st July 2011.

Very important point for you: If you home's possession was not taken until now, then you have a chance of saving tax. When did you take possession of your home?

Even if you file for previous assessment years now, deductions and refunds won't be applicable and they may even ask for penalty.

As @Amit91 mentioned, if possession of your house has been taken now, you can claim interest paid in the years before possession year in five equal portions starting from possession year.

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