Date: 09 OCTOBER 2020

VIRTUAL COACHING CLASSES

ORGANISED BY BOS, ICAI

INTERMEDIATE LEVEL
PAPER 4A: INCOME TAX LAW

Faculty: CA SANJAY VHANBATTE

© The Institute of Chartered Accountants of India

BASIC CONCEPT
Return of income is the format in which the assessee furnishes information as to his total
income and tax payable.
The format for filing of returns by different assessees is notified by the CBDT.
The particulars of income earned under different heads, gross total income, deductions from
gross total income, total income and tax payable by the assessee are generally required to be
furnished in a return of income.
In short, a return of income is the declaration of income by the assessee in the prescribed
format.

10 October 2020 © THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA 2

 OVERVIE
W

10 October 2020 © THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA 3

 SECTION 139(1)
PROVISION
Assessees required to file return of income compulsorily
(i) Companies and firms (whether having profit or loss or nil income);
(ii) a person, being a R AND OR, having any asset (including any financial interest in any entity) located
outside India or signing authority in any account located outside India or if beneficiary of any asset located
outside India, whether or not having income chargeable to tax;
(iii) Individuals, HUF, AOPs or BOIs and artificial juridical persons whose total income before giving effect
to the provisions of Chapter VI-A and sections 54, 54B, 54D, 54EC or 54F exceeds the basic exemption
limit.
(iv) Any person who during the P.Y. –
- has deposited more than Rs 1 crore in one or more current accounts maintained with a banking
company or co-operative bank
- has incurred expenditure of more than Rs 2 lakh for himself or any other person for travel to a
foreign country;
- has incurred expenditure of more than Rs 1 lakh towards consumption of electricity
- fulfils such other conditions as may be prescribed

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
4
SECTION 139(1)
10 October 2020 © THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA 5
 SECTION 139(1)
DUE DATE OF FILING ROI

30th Sept. of 30th Nov 31st July

A.Y. of A.Y. of A.Y.

Asseesse Being- Any other assessee

1. Company Assessees who are
2. a person (other than company) whose required to furnish
accounts are required to be audited. report u/s 92E*
3. A working partner of a firm whose
accounts are required to be audited.

* Section 92E is not covered within the scope of syllabus of Intermediate Paper
© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF
10 October 2020 INDIA
6
 SECTION 234A
Interest for default in furnishing return of income
 Interest u/s 234A is payable if the ROI is furnished after the due date or ROI is not furnished.
 Simple interest @1% per month or part of the month for the period commencing from the date
immediately following the due date and ending on the following dates –

Circumstances Ending on the following dates

Where the return is furnished after due date the date of furnishing of the
return
Where no return is furnished the date of completion of assessment

 However, where the assessee has paid taxes in full on or before the due date, interest u/s 234A is not
leviable.
 The interest has to be -
 Calculated on the amount of tax on total income as determined under section 143(1) or on regular
assessment
 Reduced by the advance tax paid and any tax deducted or collected at source, any relief of tax
allowed under section 89 and any tax credit allowed to be set-off in accordance with section 115JD.
© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF
10 October 2020 INDIA
7
 SECTION 234F ( NOV 2018 – Question)
Fee for default in furnishing return of income

Fee u/s 234F is leviable if asseessee fails to furnish ROI within the due date as per
139(1).
Fees u/s 234 is discussed as under–

Circumstances Fee**
Return is furnished on/before 31st Dec of AY Rs. 5,000
In any other case Rs. 10,000

** Fee u/s 234 F shall not exceed Rs. 1,000 if Total Income does not exceed Rs. 5L .

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
8
 SECTION 139(1A)
OPTION TO FURNISH RETURN OF INCOME TO EMPLOYER

 Individual Receiving Income under head “Salaries” can furnish ROI to his employer.

 Such employer shall furnish all returns of income received by him on or before the
due date, in such form (including on a floppy, diskette, magnetic cartridge tape, CD-
ROM or any other computer readable media) and manner as may be specified in the
scheme.
 Any employee who has filed ROI to his employer shall be deemed to have furnished a
return of income under section 139(1).

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
9
 SECTION 139(1C)
SPECIFIED CLASS OR CLASSES OF PERSONS TO BE EXEMPTED FROM FILING RETURN OF INCOME

 Every person who fulfills criteria u/s 139(1) is required to file ROI.

 For reducing the compliance burden of small taxpayers, the CG has been
power to notify the class or classes of persons who will be exempted from the
requirement of filing of ROI.

 Every notification issued under section 139(1C) shall, as soon as may be after
its issue, be laid before each House of Parliament while it is in session, for a
total period of thirty days.
If Both Houses agree in making any modification in the notification, the
notification will thereafter have effect only in such modified form. If both
Houses agree that the notification should not be issued, the notification shall
thereafter have no effect.

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
10
 SECTION 139(3)
LOSS RETURN

 An assessee can carry forward or set off his/its losses provided he/it has filed his/its return u/s
139(3), within the due date specified u/s 139(1).
 Section 80 requires mandatory filing of return of loss under section 139(3) for following losses:-
 Business loss under section 72(1)
 Speculation business loss under section 73(2)
 Loss from specified business under section 73A(2)
 Loss under the head “Capital Gains” under section 74(1)
 Loss from the activity of owning and maintaining race horses under section 74A(3)
 Exceptions
 Loss from house property and unabsorbed depreciation can be carried forward for set-off even
though return has not been filed before the due date.

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
11
 SECTION 139(4)
LOSS RETURN

A return of income for any P.Y., which has not been furnished within the
time allowed u/s 139(1), may be furnished at any time before the:
(i) end of the relevant A.Y.; or
(ii) completion of the assessment,
whichever is earlier.

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
12
 SECTION 139(5)
Revised Return

If any omission or any wrong statement is discovered in a return furnished

u/s 139(1) or belated return u/s 139(4), a revised return may be furnished
by the assessee at any time before the:
(i) end of the relevant A.Y.; or
(ii) completion of assessment,
whichever is earlier.

Thus, belated return can also be revised.

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
13
 SECTION 139(6)
PARTICULARS TO BE FURNISHED WITH THE RETURN

The prescribed form of the return shall, in certain specified cases, require the assessee to
furnish the particulars of –
(i) income exempt from tax;
(ii) assets of the prescribed nature and value, held by him as a beneficial owner or
otherwise or in which he is a beneficiary;
(iii) his bank account and credit card held by him;
(iv) expenditure exceeding the prescribed limits incurred by him under prescribed heads;
(v) such other outgoings as may be prescribed.

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
14
 SECTION 139(6A)
PARTICULARS TO BE FURNISHED WITH RETURN OF INCOME IN THE CASE OF AN ASSESSEE ENGAGED IN BUSINESS OR
PROFESSION
The prescribed form of the return shall, in the case of an assessee engaged in any
business or profession, also require him to furnish –
(i) the Audit Report referred to in section 44AB.
(ii) the particulars of the location and style of the principal place and all the branches
thereof.
(iii) the names and addresses of his partners.
(iv) if he is a member of an association or body of individuals,
(a)the names of the other members of the association or the body of individuals;
(b)the extent of the share of the assessee and the shares of all such partners or
members, as the case may be, in the profits of the business or profession.

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
15
 SECTION 139(9)
DEFECTIVE RETURN-WHEN TREATED

• annexures, statements and columns in the return of income NOT DULY FILLED IN
• ROI is not accompanied by:
 Statement of Income.
 Audit Report u/s 44AB (Form 3CA/CB- Form 3CD)
 Proofs of Tax Payments –TDS-TCS-SAT-Advance Tax. ( TDS TCS certificate can be submitted within two years- if
not submitted along with the return)
 Proof of deposit under CDS 1974.
• If regular Books maintained and the return is not accompanied by:
 copies of manufacturing account, trading account, profit and loss account or income and expenditure
account, or any other similar account and balance sheet
 the personal accounts- proprietor /partner/member ( or own capital account in the books of
firm/AOP/BOI)
 Audited Financial Statements where books are audited.
 Cost Audit Report obtained as required under section 148 of Companies Act, 2013- where applicable.
• Where regular books not maintained but the return is not accompanied by the following details:
 Statement giving sales, gross profit, expenses and net profit
 Basis on which above amounts have been computed
 Total sundry debtors, sundry creditors, stock and cash in hand

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
16
 SECTION 139(9)
DEFECTIVE RETURN

• AO to give opportunity to the assessee to rectify the defect

within 15 days from the date of intimation or such further
time at his discretion.
• If the defect is not rectified- return would be treated as an
invalid return- assessee will be deemed to have not filed the
return
• AO can condone the delay if rectified before the assessment
completion date.

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
17
 SECTION 139A PAN
As per section 139A(1), the following persons mentioned in column (2), who have not been allotted a permanent
account number (PAN), to apply to the Assessing Officer within the time specified in column (3) for the allotment
of a PAN

S.N Persons required to apply for PAN Time limit for making such application

(i) Every person, if his total income during any P.Y. exceeds the On or before 31st May of the A.Y. for which
maximum amount which is not chargeable to income-tax such income is assessable

(ii) Every person carrying on any B/P whose total sales, turnover or Before the end of that F.Y. (P.Y.).
gross receipts are or is likely to exceed Rs 5 lakhs in any P.Y.
(iii) Person being a resident, other than an individual, enters into a On or before 31st May of the immediately
financial transaction of an amount aggregating to Rs 2.5 L or more following F.Y.
in a F.Y.
(iv) Every person who is a managing director, director, partner, trustee, On or before 31st May of the immediately
author, founder, karta, chief executive officer, principal officer or following F.Y. in which the person referred in
office bearer of any person referred in (iii) above or any person (iii) enters into financial transaction specified
competent to act on behalf of such person referred in (iii) above therein.

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
18
 SECTION 139A PAN
Quoting of PAN is mandatory in all the following documents:
(a) in all returns to, or correspondence with, any income-tax authority;
(b) in all challans for the payment of any sum due under the Act;
(c) in all documents pertaining to such transactions entered into by him, as may be prescribed by the CBDT in the
interests of revenue. In this connection, CBDT has notified the following transactions, namely:
S.N Nature of Transaction Value of Transaction
1 Sale or purchase of a motor vehicle or vehicle, other than two wheeled vehicles All such transactions

2 Opening an account [other than a time-deposit referred to at Sl. No.12 and a All such transactions
Basic Savings Bank Deposit Account] with a banking company or a cooperative
bank
3 Making an application to any banking company or a co-operative bank or to All such transactions
any other company or institution, for issue of a credit or debit card.
4 Opening of a demat account with a depository, participant, custodian of All such transactions
securities or any other person registered under SEBI Act, 1992.

5 Payment to a hotel or restaurant against a bill or bills at any one time. Payment in cash of an
amount > Rs. 50,000.

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
19
S.N Nature of Transaction Value of Transaction
6 Payment in connection with travel to any foreign country or payment for Payment in cash of an
purchase of any foreign currency at any one time. amount > Rs 50,000
7 Payment to a Mutual Fund for purchase of its units Amount > Rs 50,000

8 Payment to a company or an institution for acquiring debentures or bonds Amount > Rs. 50,000
issued by it.
9 Payment to the RBI for acquiring bonds issued by it. Amount > Rs. 50,000

10 Deposit with a banking company or a co-operative bank or post office Cash deposits > R 50,000
during any one day

11 Purchase of bank drafts or pay orders or banker’s cheques from a banking Payment in cash of an
company or a co-operative bank. amount > Rs 50,000 during
any one day.

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
20
S.N Nature of Transaction Value of Transaction
12 A time deposit with, - Amount > Rs 50,000 or
(i) a banking company or a co-operative bank; aggregating to more than
(ii) a Post Office; Rs 5 lakh during a F.Y.
(iii) a Nidhi referred to in section 406 of the Companies Act, 2013; or
(iv) a non-banking financial company which holds a certificate of registration
u/s 45-IA of the Reserve Bank of India Act, 1934, to hold or accept deposit
from public
13 Payment for one or more pre-paid payment instruments, as defined in the Payment in cash or by
policy guidelines for issuance and operation of pre-paid payment instruments way of a bank draft or pay
issued by RBI under the Payment and Settlement Systems Act, 2007, to order or banker’s cheque
a banking company or a co-operative bank or to any other company or of an amount aggregating
institution. to more than R 50,000 in
a F.Y.
14 Payment as life insurance premium to an insurer as defined in the Insurance Amount aggregating to
Act, 1938. more than Rs 50,000 in a
F.Y.
15 A contract for sale or purchase of securities (other than shares) as defined in Amount > Rs 1 lakh per
section 2(h) of the Securities Contracts (Regulation) Act, 1956. Transaction

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
21
S.N Nature of Transaction Value of Transaction
16 Sale or purchase, by any person, of shares of a company not listed in a Amount > Rs 1 lakh per
recognised stock exchange Transaction
17 Sale or purchase of any immovable property. Amount > Rs 10 lakh or
valued by stamp valuation
authority referred to in
section 50C at an amount
> Rs 10 lakh
18 Sale or purchase, by any person, of goods or services of any nature other than Amount > Rs 2 lakh per
those specified at Sl. No. 1 to 17 of this Table, if any transaction

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
22
 IMPORTANT POINTS
 Aadhar Number to be quoted by every person on or after 1/7/2017 in the application for allotment of
PAN and in Return of Income.
(The Apex Court in a series of judgments has upheld the validity of section 139AA)
 If a person does not have Aadhar Number, the Enrolment ID of Aadhar application form issued to him
at the time of enrolment shall be quoted.
 Aadhar Number to be intimated to prescribed authority on or before a date notified by the Central
Government i.e 31.03.2019 (N.NO. 31/2019).

 PAN shall be made in operative after date notified if person fails to intimate Aadhar.

Inter-changeability of PAN with the Aadhaar number

 Every person who is required to furnish or intimate or quote his PAN may furnish or intimate or quote
his Aadhar Number in lieu of the PAN w.e.f. 1.9.2019 if he
- has not been allotted a PAN but possesses the Aadhar number
- has been allotted a PAN and has intimated his Aadhar number to prescribed authority.

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
23
 IMPORTANT POINTS
Important Points-
 Minor to quote PAN of parent or guardian.
 Declaration by a person not having PAN.

Provision not to apply to certain persons or class of persons (N.No. 37/2017).

Individual -
 Residing in the States of Assam, Jammu & Kashmir and Meghalaya;
 A non-resident as per Income-tax Act, 1961;
 Of the age of 80 years or more at any time during the previous year;
 Not a citizen of India

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
24
 IMPORTANT POINTS
Intimation of PAN to person deducting tax at source
Person receiving any amount on which TDS has been made shall intimate his PAN to the person
responsible for deducting such tax [Sub-section (5A)].
Quoting of PAN in certain documents
 Person deducting TDS shall quote the PAN in following documents in :-
(i) Statement u/s 192(2C) giving particulars of perquisites or profits in lieu of salary provided to
any employee;
(ii) Certificates for tax deducted issued to the person to whom payment is made;
(iii) Returns made to the prescribed income-tax authority u/s 206;
(iv) Statements prepared and delivered or caused to be delivered in accordance with the
provisions of section 200(3)[Sub-section (5B)].
Requirement to intimate PAN and quote PAN not to apply to certain persons
The above sub-sections (5A) and (5B) shall not apply to a person who –
(i) does not have taxable income or
(ii) who is not required to obtain PAN
 if such person furnishes a declaration under section 197A in the prescribed
form and manner that the tax on his estimated total income for that previous year will be nil.

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
25
 IMPORTANT POINTS
Quoting and authentication of PAN or Aadhar number
 Person entering into prescribed transactions shall quote Pan/Aadhar in documents of such
transactions and also authenticate PAN/Aadhar.
 Person receiving the above documents shall ensure that PAN/Aadhar is quoted & also authenticated.

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
26
 139B-SCHEME FOR SUBMISSION OF RETURNS HROUGH TAX RETURN PREPARERS
 CBDT may notify scheme to provide that such persons may furnish their ROI
through TRP.
 Tax Return Preparer shall assist the persons furnishing the ROI.
 A Tax Return Preparer means any individual, other than
 Any officer of a scheduled bank with which the assessee maintains a current
account or has other regular dealings.
 Any legal practitioner who is entitled to practice in any civil court in India.
 A chartered accountant.
 An employee of the ‘specified class or classes of persons’.

The “specified class or classes of persons” means any person other than a
company or a person whose accounts are required to be audited under section
44AB (tax audit) or under any other existing law, who is required to furnish a
ROI under the Act.

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
27
 139B-SCHEME FOR SUBMISSION OF RETURNS HROUGH TAX RETURN PREPARERS
 CBDT notified TRP scheme, 2006 w.e.f 01.12.2006

Applicability of the scheme The scheme is applicable to all eligible persons.

Eligible person
Tax Return Preparer
Educational qualification for
TRP
Preparation of and furnishing  An eligible person can furnish ROI after preparing TRP.
the ROI by the TRP
Any person being an Individual or a HUF.
Any individual who has been issued a “TRP Certificate" and a “UIN"
under this Scheme by the Partner Organisation to carry on the
profession of preparing the ROI in accordance with the Scheme.
Individual – Holding Batchelor Degree from Recognized Indian university
OR has passed Inter Level examination from ICAI , ICSI , ICWA.
 Following eligible person ( I & HUF) cannot furnish ROI through TRP –
 Who are required to get BOA audited u/s 44AB / any other
law for time being in force.
 Who is not a Resident in India during P.Y.

Section 139B(3)- Employee of the “specified class or classes of persons” is not authorized to act as a TRP .
- Employees of companies and persons whose accounts are required to be audited under
section 44AB or any other law for the time being in force are eligible to act as TRP.
© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF
10 October 2020 INDIA
28
139 ( C & D) POWER OF CBDT TO DISPENSE WITH FURNISHING DOCUMENTS ETC. WITH THE
RETURN AND FILING OF RETURN IN ELECTRONIC FORM
 CBDT has power to notify the persons who may not require to furnish documents,
statements, receipts, certificate, reports of audit or any other documents. (139C)
 However , If required by A.O. , the documents need to be furnished.
 CBDT has power to make rules for providing for –
- The class or classes of persons who shall furnish the ROI in electronic form;
- The form and the manner in which ROI in electronic form may be furnished;
- The documents, statements, receipts, certificates or audited reports which may not be furnished along
with the ROI in electronic form but have to be produced before the Assessing Officer on demand;
- The computer resource or the electronic record to which the ROI in electronic form may be
transmitted.

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
29
 140A – SELF ASSESSMENT TAX
 Where any tax is payable on the basis of any return required to be furnished u/s 139, after taking into
account –
 (i) the amount of tax, already paid,
 (ii) the tax deducted or collected at source (TDS/TCS)
 (iii) any relief of tax claimed u/s 89
 (iv) any tax credit claimed to be set-off in accordance with the provisions of section 115JD (i.e., AMT)
 the assessee shall be liable to pay such tax together with interest and fee payable under any provision of this
Act for any delay in furnishing the return or any default or delay in payment of advance tax before furnishing
the return.
 Where the amount paid by the assessee falls short of the aggregate of the tax, interest and fee as aforesaid,
the amount so paid shall first be adjusted towards the fee payable and thereafter, towards interest and the
balance shall be adjusted towards the tax payable.

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
30
 140 – PERSONS AUTHORISED TO VERIFY ROI

ASSESSEE CIRCUMSTANCE AUTHORIZED PERSONS

(i) In circumstances not covered under (ii), (iii)
& (iv) below
(ii) where he is absent from India
Individual
(iii) where he is mentally incapacitated from
attending to his affairs
(Iv) where, for any other reason, it is not
possible for the individual to verify the
Return
 The individual himself
 The individual himself; or
 Any person duly authorised by him in
this behalf holding a valid power of
attorney from the individual (Such
power of attorney should be attached
to the return of income)
 His guardian; or
 Any other person competent to act on
his behalf
 Any person duly authorised by him in
this behalf holding a valid power of
attorney from the individual (Such
power of attorney should be attached
to the return of income)

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
31
ASSESSEE CIRCUMSTANCE AUTHORIZED PERSONS
(i) in circumstances not covered under (ii) to (vi) below  the managing director of the
company
(ii) (a) where for any unavoidable reason such managing  any director of the company
director is not able to verify the return; or
(b) where there is no managing director  any director of the company
(iii) where the company is not resident in India  a person who holds a valid power of
attorney from such company to do
COMPANY so (such power of attorney should
be attached to the return)
(iv) (a) Where the company is being wound up (whether  Liquidator
under the orders of a court or otherwise); or
(b) where any person has been appointed as the  Liquidator
receiver of any assets of the company
(v) Where the management of the company has been taken over  the principal officer of the company
by CG or any SG under any law

(vi) Where an application for corporate insolvency resolution  Insolvency professional appointed by
process has been admitted by the Adjudicating Authority under such Adjudicating Authority
the Insolvency and Bankruptcy Code, 2016.

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
32
 140 – PERSONS AUTHORISED TO VERIFY ROI
ASSESSEE CIRCUMSTANCE AUTHORIZED PERSONS
HUF (i) in circumstances not covered under (ii) and (iii)  The karta
Below
(ii) where the karta is absent from India  Any other adult member of the HUF

(iii) where the karta is mentally incapacitated from  Any other adult member of the HUF
attending to his affairs
Firm (i) in circumstances not covered under (ii)  The managing partner of the firm
Below
(ii) (a) where for any unavoidable reason such managing  Any partner of the firm, not being a
partner is not able to verify the return; or minor
(b) where there is no managing partner.  Any partner of the firm, not being a
minor
LLP (i) in circumstances not covered under (ii) Below  Designated partner

(ii) (a) For any unavoidable reason such designated  any partner of the LLP
partner is not able to verify the return; or
(b) where there is no designated partner.  any partner of the LLP
© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF
10 October 2020 INDIA
33
 140 – PERSONS AUTHORISED TO VERIFY ROI
ASSESSEE CIRCUMSTANCE AUTHORIZED PERSONS
LOCAL  the principal officer
AUTHORITY -
Political  the CEO of such party (whether he is
Party - known as secretary or by any other
designation)
Any other  any member of the association or
Association - the principal officer of such
association
Any other  that person or some other person
Person - competent to act on his behalf.

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
34
 MCQ’S
Q1. As per section 139(1), an individual other than a individual of
age of 60 years or more shall have to file return of income if:
A. His total income exceeds Rs. 3,00,000
B. His gross total income exceeds Rs. 3,00,000
C. If his total income before allowing deduction U/S 80C to 80U
exceeds Rs. 2,50,000.
D. If his total income after allowing of deduction uls 80C to 80U
exceeds Rs. 3,00,000

Ans C.

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
35
 MCQ’S
Q2. The filing of return of loss in case of a person other than a
company or firm is:
A. Mandatory
B. Not mandatory
C. Mandatory if the assessee has to carry forward the loss
which are allowed to be carried forward & set off
D. none of the above

Ans C.

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
36
 MCQ’S
Q3. Belated return u/s 139(4) can be filed at any time:
A. Before the expiry of one year from the end of the relevant assessment
year
B. Before the expiry of the relevant assessment year
C. Before the expiry of the relevant assessment year or before the
assessment is complete, whichever happens to be earlier
D. Before the expiry of one year from the end of the relevant
assessment year or before the assessment is complete, whichever
happens to be earlier

Ans C.

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
37
 MCQ’S

Q4. Mr. Joshi finds some mistake in the return of income submitted
by him on 5.6.2019 for assessment year 2019-20. He wishes to revise
such return. No assessment has been done in this case. He can revise
such return till:
A. 31.3.2018
B. 31.3.2020
C. 31.3.2019
D. 31.12.2019

Ans B. 31.3.2020

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
38
 MCQ’S

Q5. For Filing of Returns of Income in respect of various entities, the

Income Tax Act, 1961 has prescribed:

A. One Due Date

B. Two Due Dates
C. Three Due Dates
D. Four Due Dates

Ans C. Three Due Dates

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
39
 MCQ’S

Q6. As per Section 234A, Interest is attracted if:

A. Return Furnished after Due date.

B. When AO considers that the Return furnished is Defective
C. Both of the Above
D. None of the Above

Ans A. Return Furnished after Due date

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
40
 MCQ’S

Q7. Mr. Rakesh is a Working Partner of M/S RS & Co. whose

accounts are required to be audited, what is the due date of filing of
return for Mr. Rakesh ?
A. 30th November of Assessment Year
B. 30th September of Assessment Year
C. 31st July of Assessment Year
D. None of the above

AsAnsA. Return
B. 30th Furnished
September after
of Assessment
Due date Year

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
41
 MCQ’S

Q8. M/S Laxman & Co., claimed following during the PY

a) Business Loss- Rs.3,89,480
b) Unabsorbed Depreciation- Rs.2,85,720
M/s Laxman & Co. filed its return after the due date. What is eligible
amount for c/f of Losses as per the provision.

A. Rs. 3,89,720
B. Rs. 2,85,720
C. Rs.6,75,200
D. Rs.1,03,760
As A. Return Furnished after Due date
Ans B. Rs. 2,85,720

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
42
 MCQ’S

Q9. What is a Penalty u/s 234F for a person having Total Income of
Rs.18,00,000, if he furnished its return on or before 31st December of the
Assessment Year is?

A. Rs.1,000
B. Rs.10,000
C. Rs.5,000
D. None of the above

Ans C. Rs.5,000

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
43
 MCQ’S

Q10.AO provides an assessee to rectify its defective return within the

period of-

A. 5 Days
B. 10 Days
C. 15 Days
D. 20Days

Ans C. 15 Days

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
44
 MCQ’S

Q11. Mr. Raju, a salaried individual, has a total income of 8 lakhs for
A.Y. 2020-21. He furnishes his return of income for A.Y. 2020-21 on 1st
December, 2020. He is liable to pay fee of–
A. upto 1,000 under section 234F
B. 5,000 under section 234F
C. 10,000 under section 234F
D. Not liable to pay any fee

Ans B. 5,000 under section 234F

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
45
 MCQ’S

Q12. An assessee can file a revised return of income at any time before
the completion of assessment or before expiry of the following period,
whichever is earlier–
A. One year from the end of the relevant Assessment Year
B. Two years from the end of the relevant Assessment Year
C. Six months from the end of the relevant Assessment Year
D. End of the relevant Assessment Year

Ans D End of the relevant Assessment Year

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
46
 MCQ’S

Q13. Person who does not have a PAN and who enters into any
transaction specified shall make a declaration in Form No.________ giving
therein the particulars . –

A. 35
B. 40
C. 60
D. 30

Ans C. 60

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
47
 MCQ’S

Q14. Mandatory quoting of PAN is connection payment to Company

or Institution for acquiring Debentures or bonds issued by it if it exceed
RS.____________________ . –

A. Rs.1,00,000
B. Rs.50,000
C. Rs.10,000
D. Rs.25,000

Ans B. Rs.50,000

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
48
 MCQ’S

Q15. The provisions of section 139AA relating to quoting of Aadhar

Number would not apply to an individual who does not possess the Aadhar
number or Enrolment ID and is –
A. Residing in the States of Assam, Jammu & Kashmir and Meghalaya
B. a Non-Resident as per Income-tax Act, 1961
C. of the age of 80 years or more at any time during the previous year
D. All the above

Ans D. All the above

© THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

10 October 2020 INDIA
49
Question 1

State with reasons whether you agree or disagree with the following statements:

(a) Return of income of Limited Liability Partnership (LLP) could be verified by any partner.

(b) Time limit for filing return under section 139(1) in the case of Mr. A having total

turnover of ` 160 lakhs for the year ended 31.03.2020, whether or not opting to offer

presumptive income under section 44AD, is 30th September 2020.

Question 2

Mr. Vineet submits his return of income on 12-09-2020 for A.Y 2020-21 consisting of

income under the head salaries, “Income from house property” and bank interest. On 21-

01-2021, he realized that he had not claimed deduction under section 80TTA in respect of

his interest income on the Savings Bank Account. He wants to revise his return of income.

Can he do so? Examine. Would your answer be different if he discovered this omission on

21-04-2021?
Question 3

Examine with reasons, whether the following statements are true or false, with

regard to the provisions of the Income-tax Act, 1961:

(i) The Assessing Officer has the power, inter alia, to allot PAN to any person by

whom no tax is payable.

(ii) Where the Karta of a HUF is absent from India, the return of income can be

verified by any male member of the family.

 THANK YOU

10 October 2020 © THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA 53