What is Return..??

A return, also known as a financial return, in its simplest terms, is the money made or lost on an investment over some period of time.
A return can be expressed nominally as the change in dollar value of an investment over time. A return can also be expressed as a percentage derived from the ratio of profit to investment. Returns can also be presented as net results (after fees, taxes, and inflation) or gross returns that do not account for anything but the price change.

KEY TAKEAWAYS:

• A return is the change in price on an asset, investment, or project over time, which may be represented in terms of price change or percentage change.
• A positive return represents a profit while a negative return marks a loss.
• Returns are often annualized for comparison purposes, while a holding period return calculates the gain or loss during the entire period an investment was held.
• Real return accounts for the effects of inflation and other external factors, while nominal return only is interested in price change. Total return for stocks includes price change as well as dividend and interest payments.

Understanding Returns:

Prudent investors know that a precise definition of return is situational and dependent on the financial data input to measure it. An omnibus term like profit could mean gross, operating or net, before tax or after tax revenues or income. An omnibus term like investment could mean selected, average or total assets, debt or equity.
A positive return is the profit, or money made, on an investment or venture. Likewise, a negative return represents a loss, or money lost on an investment or venture.

Types of returns:

1. Original Return:
   A return which is filed within the due date or deadline is called an original return. It is advisable to file your returns on time i.e. original returns to avoid any inconveniences.
2. Revised Returns:
When an assesses has successfully filed the returns but later on realizes that he happened to miss some information or details or forgot to disclose some information and wishes to file the returns again then in such case the return filed is called a revised return.
You can file a revised return anytime before the end of the given assessment year.

Things to remember while filing revised return:
• You can change the ITR form while filing revised return.
• The department cannot levy any penalty for bonafide mistakes.
• If at any point of the assessment, the assessing officer feels that the wrong information is shared intentionally, the revised return filing will not be allowed and penalty will be levied.
• For every revised return, the interest will be calculated as per section 234B and 234C.
• If the revision of return is done after the survey or search is conducted on the filed returns and the original return is not bonafide then the assesses is due for a penalty.
3. Belated Return:
   When an assessee does not file returns on time i.e. by the due date or deadline then the return filed in such case is called belated return. The belated return can be filed anytime during the same assessment year. For the current year, the assessment year ends on 31st March 2020.