ASK ANIL: ‘How to rectify IT return-filing mistakes?’

‘When you do re-filing, you are supposed to select the option ‘Revised u/s 139(5)’ in the ‘return filed under’ column.’

Anil Rego, CEO, Right Horizons, answers your personal income tax queries.

Hrishikesh Ghorpade: Appreciate the work you are doing for non-finance background people (like me). I have a question related to income tax if you could help resolve it.

I filed IT return before 31st Dec and observed the Form 16 provided by the employer is incomplete. Basically, our organisation went through a legal entity change last year, so ideally we should have got two Form 16s: One for the previous entity and another for the new entity.

During filing the return, only new Form 16 was considered by mistake and I have a previous entity Form 16 in hand now but after filing the returns how do I correct my IT returns? Again, thank you in advance for all help.

Anil Rego: You can rectify errors made in income tax filing even after you finish filing under section 139 (5) and you can do refiling. This revised return can be filed before three months prior to the end of the relevant assessment year or before the completion of the assessment. So, the last date for you to to file a revised return using both the form 16 for FY 2021-22 (AY 2022-23) is December 31, 2022, for ITR filed for FY 2021-22.

When you do re-filing, you are supposed to select the option ‘ Revised u/s 139(5)’ in the ‘return filed under’ column. The ITR form will additionally ask you for details of the original ITR, i.e., receipt number and date of filing of original ITR.

Since you have 2 Form 16s, after uploading the first Form 16, you need to click on ‘upload another Form 16’ and submit so that both Form 16s gets uploaded.

I must highlight that normally when you have 2 Form 16s there would be additional tax payable due to double count of various exemption limits and deductions in each Form 16. You would end up paying interest on the additional tax as well.

Dr Suryaprasad Raval: I am 65 years old retired teacher having Rs 40,000 pm pension. This year I have LTCG of Rs 17 lakh by selling mutual funds. Should I pay advance tax?

Anil Rego: Since you are above 60 years old resident Indian and you don’t have income chargeable to tax under the head ‘Profits and gains of business or profession’, you don’t need to pay advance tax.

You can show the LTCG from sale of Mutual funds while filing your yearly income tax returns.

ANIL KUMAR: Kindly clear my doubt about capital gains tax on LTCG. I sold my flat during 2021 thus received LTCG. During 2018 I signed an agreement to buy a flat and paid 90% of cost of new flat to owner of flat. Now I have to pay him 10% remaining cost to get the flat registered in my name. Can I show new flat purchased after getting registration done as investment to save tax on LTCG?

Anil Rego: To get tax benefit on the LTCG, capital gains should be used to purchase or construct another house. The new house should be purchased one year before or two years after the sale of the old house.

Any additional payments made during this defined period can be claimed for reinvestment in a house.

You can find more of Mr Rego’s answers here.

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