InvestorQ : What did the amendment in Finance Act 2016 change with respect to taxes?
divya Sing made post

What did the amendment in Finance Act 2016 change with respect to taxes?

Answer
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1 year ago


Assessment Year is the year in which an individual files income tax returns (ITR) of the year prior to it (i.e. Financial Year). It is the year in which the income that one has earned in the financial year that is just ended is evaluated.

E.g. For Financial Year 2014-15, the Assessment Year will be 2015-16.

Finance Act was amended in 2016 and according to this amendment, from AY 2017-18, belated IT returns cannot be filed before the end of the relevant AY. For instance, for the AY 2018-19, a belated return can only be filed on or before March 31, 2019 and not later.

Filing the IT returns post March 31, 2019 could attract high penalties.