478, EP-TL8P (i) The Central Board of Direct Taxes, constituted under the Central Boards of Revenue Act, 199, (i) Directors-General of Income-tax or Chief Commissioners of Income-tax; ii) Directors of Income-tax or Commissioners of Income-tax or Commissioners of Income-tax (pe, (uv) Additonal Directors of Income-tax or Additional Commissioners of Income-tax or Aa, Commissioners of Income-tax (Appeals); (v) Joint Directors of Income tax or Joint Commissioners of Income-tax. («) Deputy Directors of Income-tax or Deputy Commissioners of Income-tax or Deputy Commissions Income-tax (Appeals); (vii) Assistant Directors of Income-tax or Assistant Commissioners of Income-tax; (vii) Income-tax (Assessing) Officers; (ix) Tax Recovery Officers; (x) Inspectors of Income-tax. The provisions of the Income-tax Act contained in Sections 117 to 136 specify the procedure relating tote appointment of the various income-tax authorities, their powers, functions, jurisdiction and control. In addiion'o the various provisions contained in these sections, the Income-tax Department follows the system of functional allocation and distribution of work with a view to specialising and concentrating in the various areas of income- tax assessment, procedure, collection, recovery, refund, appeals, etc. For all purposes of the Income-tax Act, the Income Tax authorities are vested with the various powers which are vested in a Court of Law under the Code of Civil Procedure while trying a suit in respect of any case. More Particularly, the provisions of the Code of Civil Procedure and the powers granted to the tax authorities under the code would in respect of: (@) discovery and inspection; (b) enforcing the attendance, including any officer of a Bank and examining him on oath; () compelling the production of books of accounts and the documents; (9) collecting certain information [Section 1338 - inserted by the Finance Act, 1986}; {@) issuing commissions and summons. paesance Peeled as acted that wef, 1.4.1973 every income-tax authority shall be deemed to be a a Granted ore goreans a a ee 7 Chapter XXVI of the Code of Criminal Procedure, 1973 The pow s Production of evidence etc., searches ai obi the powers of income-tax authorities relate to aeons} trom vatous pares, authortioe arog cues: lication of retained assets, power to cal fr iform of companies ete. Kumns re ‘and bodies, powers of survey, powers relating to the inspection of the regis a deemed to be judicial procs : Proceedings under the Income-tax Act before any income-tax authority must Peak ale : = cings within the meaning of Sections 193 and 228 and for purposes of Section nt Provisions of the income-tan ve of administration of the Income-tax Act, studenty ~ | ygpointment of Income-tax Authorities (Section 117) Lesson 11 « Procedure for Assessment 479 e central Government may appoint such persons as it thinks fit to be income-tax authorities. Where an jeome-¥@X authority is authorised by the Board, it may appoint such executive or ministerial staf as may De jo0es8207 10 assist it in the execution ofits function, control of Income-tax Authorities (Section 118) Board is empowered to control the income-tax authorities. it may notify that any income-tax authority will be ivordinate t0 Such other income-tax authority or authorities as may be specified in the notification. CENTRAL BOARD OF DIRECTTAXES (CDT) nn Sane TA Te CENTRAL BOARD TOE DIBEOT TIRES CERT mn me (jppointment and Working of the Board ‘ne Central Board of Direct Taxes was created under the Central Boards of Revenue Act, 4963 [Section 2(12)]. ‘he Board in its working is closely associated with the Ministry of Finance. (risdietion es isthe topmost executive authority in the sphere of direct taxes. Its powers of administration supervision and control extend over the whole department. Power Power to make Rulles: It has the power to make rules (under Section 295) for carrying out the purposes of this Act. The Flules may be made for whole or any part of India. (i) Toissue instructions: It may issue orders, instructions and directions to all officers and persons employed in the execution of the Act (Section 119). However, it cannot interfere with the discretion of the Commissioner (Appeals), in the exercise of the appellate functions [Section 119(1)(b)] and it cannot direct the Assessing Officer or any other income-tax authority to make a particular assessment or to dispose of a particular case in a particular manner [J.K. Synthetics Ltd. v. CBDT (1972) 83 ITR 335 (SC)] [Section 119(1)(a)]. (ii) Power to relax mandatory provisions: The Board is empowered to relax the provision relating to the charge of mandatory interest for defaults in deduction of tax at source, of payment of such tax [under Section 201(1A)] or payment of advance tax (Section 211) or interest for defaults in furnishing return (Section 234A) or interest for defaults in payment of advance tax (under Section 2348 or Section 2940) or assessment and recovery of tax. The Board is also empowered to relax the provisions relating to the computation of total income and deductions to be made in computing total income in cases of genuine hardship. It can be done by @ general or special order and for reasons to be specified therein. (v) Power to admit belated refund application: To avoid genuine hardship in any case or class of cases, the Board may authorise any income-tax authority, not being Commissioner (Appeals) to admit belated appication or claim for any exemption, deduction, refund or any other relief [Section 119(2)(b). (0) Power to decide jurisdiction: The Board is empowered to decide jurisdictional matters of any income- tax authority and assign to them ‘such functions as are to be performed by them (Section 120). (v) Power to disclose information: The Board may disclose information relating to any assessee, to any officer, authority, or body performing any functions under any tax ‘aw relating to the imposition of any tax, duty or cess or dealing in foreign exchange under Foreign Exchange Management Act, 1999, if it considers such disclosure in public interest. The Board may also authorise any other income-tax at thority480 EP-TLEP to disclose such information (Section 138). about tax evaders. [Director-General or Director of Income-tax ei He has the following powers: : jority below the rank of an Assistant Commissioner (5, (@) Tes eepeceby he Cental Goverment a Director-General or Director may appoint oe " authority below the rank of Assistant Commissioner. & (0) To delegate the powers of Assessing Officer to Joint Commissioner (Section 120} Wherry, General or Director isso authorised by the Board, he may delegate the Powers and function se Assessing Officer to Joint Commissioner. ty (@) To transfer cases (Section 127) The Director-General may transfer any case from one y Assessing Officers subordinate to him to any other Assessing Officer also subordinate to him, % The provsionis intended to fecitate exchange of to More (@) Enquiry into conceaiment [Section 131(1A)f Ifthe Director-General or Director or Deputy Dicky Assistant Director (w.e.f. 1.6.1988) has reason to suspect that any income has been Concealed or, likely to be concealed, by any person or class of persons, within his jurisdic n, he is empowered make any enquiry or investigation relating thereto notwithstanding that no proceedings with respect y such person or class of persons are pending before him [Section 131(1A)]. (0) Search and seizure [Section 132(1)}: Where the Director- General or Director or Chief Commissions or Commissioner in consequence of information in his possession has reason to believe that (ay Person to whom notice has been issued in respect of discovery and inspection ete. [under Seri, {31(0)] oF (©) any person to whom notice has been issued to produce accounts or documents finde Section 142(1)], has failed to do so far he is not likely to produce such accounts or documents, ‘or (any Person isin possession of undisclosed income or property, he is empowered [under Section 122( authorise any Deputy Director, Deputy Commissioner, Assistant Director (Assistant Commissioner we, 1.4.1989) or Assessing Officer to enter and search any building, place, vessel, vehicle or aircraft, where he has reason to suspect about their availability and seize any such books of accounts, other ‘documents, money, bullion, jewellery or other valuable article or thing found as a result of such search, ( To requisition books of account/Assets etc. (Section 132A). Where any books of account ot documents have been taken into custody by any officer or authority under any other law (2.9. by Commissioner or Customs, Chief Commissioner or Com believe that (i) Sales Tax Commissioner etc.) and the Director General or Director or he missioner, in consequence of information in his possession, has reason any Person, required to produce such accounts/documents prior to their acquiston under any other law, has failed to Proceeding under income-tax law but such person would not produce them on their retum by the ofc or authority under any other law, or (ii) any assets represent income or property which has not bee been disclosed by any person from whose Possession or control such assets have bee? cy by any officer or authority under any other law, he may authorise any Deputy Dire Deputy Commissioner, Assistant Director, Assistant Commissioner or Income-tax Officer to requite would not have taken into custo officer or authority under any oth the requisitioning officer under i under any other law is require eduisitioning officer either forth his custody, (9) To make any enquiry under ¢ enquiry (Section 1: this Act, do so, or (i) such accounts or documents will be useful for any er law to deliver such books of account or documents or such assets! income-tax law. On a requisition being made, such officer or authoriY d to deliver such books of accounts or documents or assets 10 if with or after such time when it is no longer necessary to retain them any (35): The Director-General or Director is competent to makeLesson 11. Procedure for Assessment 481 fiat Commissioner or Commissioner of income-tax ae genes the following powers: @) 70 appoint an income-tax authority below the rank of Assistant Commissioner (Section 117): If s0 authorised by the Central Government, a Chief Commissioner or Commissioner may appoint an income-tax authority below the rank of Assistant Commissioner. (i) Todelegate the powers of Assessing ofticer to Deputy Commissioner (Section 120): Where Chiet Commissioner or Commissioners so authorised by the Board, he may delegate the powers and functions of the Assessing Officer to Joint Director or Joint Commissioner. (i) To transfer case (Section 127): The Chief Commissioner or Commissioner is empowered f0 transfer any case from any Assessing Otficers to any other Assessing Officer or Assessing Officers. (w) Power regarding discovery, production of evidence etc. (Section 131): The Chief Commissioner or Commissioner has the same powers as are vested in a Court under the Code of Civil Procedure in respect of discovery and inspection, compelling production of books of accounts and other documents (relating to any period), issuing commissions enforcing the attendance of any person, including any officer of a banking company and examining him on oath. ‘The Commissioner may impound or retain any books of accounts or other documents produced before him for such time as he thinks fit [Section 131(3)] Where such power is exercised by the Assessing Officer, he has to record reasons before impounding the books of accounts or documents. The Assessing Officer or Assistant Commissioner cannot retain the books of accounts/documents for a period exceeding 45 days without prior approval of the Chief Commissioner or Director-General or Commissioner [Section 131(3)]. (v) Search and seizure (Section 132): Like Director-General or Director, Commissioner of Income-tax has also got the powers of search and seizure, (Section 132A): Like Director-General or Director of Income sioner is also vested with the power to requisition books of the Chief Commissioner or (vi) To requisition books of accounts etc. tax, the Chief Commissioner or Commis: accounts. (vi) Power of survey (Section 133A, or, Joint Director, 1n income-tax authority (ie. Commissioner, Joint Commissioner, Deputy Commissioner, Direct Deputy Director, Assistant Director or an Assessing Officer) is empowered to enter any place, within the limits ofthe area assigned to him, where business is carried nor where any books of accounts/documents, cash, stocks of ‘other valuable articles relating to business are kept. An income-tax authority may (a) place marks of identification on the books of accounts or other ‘or cause to be made extracts or copies therefrom, or (b) make documents inspected by him and make ee st les or things checked or verified by him, or (c) an inventory of any cash, stock or other valuable articl ; record the statement of any person which may De useful or relevant to any proceeding under this Act. Books of zecounts or other documents, any cash stock oF other valuable articles cannot be removed by the income-tax authority from such place: The enity (a) to a business place should be made during the hours at which such place is open for the conduct of the business, and (b) to any other place only after place not falling within the jurisdiction of an income-tax i toa sun rise and before sun set. An entry f f i authority, should be made with the prior approval of that income-tax authority who exercises jurisdiction over that place. Wisre an assesses Ineura an stantalion’ expenditure on any function, ceremony, the income-tax sitority ls exnpotwered torvokect niantice about such expenditure from the assessee or any other ity is emp this connection and may record their statement which ict information in person who is likely to possess ) may be used thereafter as an ‘evidence. This may be done at time such function or ceremony is over.482. EP-TLAP (wil) To make any enquiry (Section 135): The Chief Commissioner or Commissioner is competent any enquiry under this Act. Make (0) Disclosure of intormation respecting assessees (Section 136): Where a person makes er to the Chief Commissioner or Commissioner inthe preseribed form for any information Telating ee? assessee in respect of any assessment, he may furnish the information asked for in respect a assessment if he satisfied that such disclosure is in public interest. that () To sanction reopening of the assessment after the expiry of four years [Section 151/99 7, assessment of an income which has escaped assessment can be reopened after the expiry of jo” years from the end of the relevant assessment year only if the Chief Commissioner or Commissions has sanctioned such reopening, re (x) To approve withholding of refund in certain cases (Section 241): Where any Proceeding is pen against the assesses and the Assessing Otficer is of the opinion that the grant of the refund adversely affect the revenue, the Chief Commissioner or Commissioner may authorise the Assessing Officer to withhold the refund til such time as the Chief Commissioner or Commissioner may determing, (xi) Set-off of refund against arrears of tax (Section 245): The Chief Commissioner or Commissionerig Te tered to set off the amount of refund or any part thereof due to any person agains he areas the tax due from such person. Any intimation in wring to this effect should be given to such persor (xiii) To direct the Assessing Ofticer to prefer appeal to the Tribunal against A.A.C.’s order [Section 253(2)} The Commissioner may, ithe objects to any order passed by a Commissioner (Appeals, dren the Assessing Officer to appeal to the Appellate Tribunal against the order. (xv) To revise any order passed by the Assessing Officer which is prejudicial to revenue (Section 263): The Commissioner may revise any order passed by the Assessing Otficer which is prejudicial to the interest or revenue. (xv) Revision of any order passed by a subordinate authority on application by the assessee or suo motu (Section 264): The Commissioner may revise either on his own motion or on an application made by the assessee within the prescribed time for such revision, any order passed by an authority suborinate to him. He may pass such order thereon, not being an order prejudicial to the assessee as he may tink fit. Commissioner of Income-tax (Appeals) The Commissioner of Income-tax (Appeals) is an appellate authority. It is vested with the judicial powers: (1) Power regarding discovery, production of evidence (Section 131): Like Chiet Commissioner of Commissioner, the power regarding discovery, production of evidence etc., can also be exercised by the Commissioner (Appeals). (2) Power to call for information (Section 133): The Commissioner of income-tax (Appeals) may, forthe Purposes of this Act: (@) require any firm to furnish him with a return of the names and addresses of the partners of the firm and their respective shares; (©) require any Hindu Undivided Family to furnish him with a return of the names and addresses oft? ™anager and the members of the family; (©) require any person whom he has reason to believe to be a trustee, guardian or agent, to furnish him it with a return of the names of the persons for or of whom he is trustee, guardian or agent, and of the! addresses; | | | |Lesson 11. Procedure for Assessment 483 (@) require any assessee to furnish a statement of the names and addresses of all persons.to whom he has paidin any previous year rent, interest, commission, royalty or brokerage, or any annuity together with particulars of such such payments made; (€) require any dealer, broker or agent or any person concerned in the management of a stock or .ddresses of all persons to whom Commodity Exchange to furnish a statement of the names and a‘ he or the Exchange has paid any sum in connection with the transfer, whether by way of sale, exchange or otherwise, of assets, or on whose behalf or from whom he or the Exchange has received any such sum, together with particulars of all such payments and receipts; (require any person, including a banking company or any officer thereot, to furnish information in relation to such point or mater or to fumish statements of accounts and affairs verified in the specified manner, giving such information as may be required by him. (8) Power to inspect register of companies (Section 194): The Commissioner (Appeals) may inspect and, if necessary, take copies or cause copies to be taken, of any register of members, debentufe holders or mortgagees of any company or of any eniry in such register. The Commissioner (ApPEAlS) may also authorize (in writing) any person subordinate to him to inspect and, it necessary, take copies or registers as aforesaid. (4) Set-off of refund against arrears of tax (Section 245): The Commissioner (Appeals) is empowered 10 set off the amount of refund or any part thereof due to any person against the arrears of tax due from such person. Intimation in writing to this effect should be given to such person. (6) Disposal of appeal (Section 251): In disposing of an appeal, the Commissioner (Appeals) has the following powers: {@) in an appeal against an order of assessment he may confirm, reduce, enhance or annual the assessment, orhe may set aside the assessment and refer back to the Assessing Officer for making aa fresh assessment in accordance with such directions as given by him. (b) in an appeal against an order imposing a penalty he may confirm or cancel such order or vary it so as either to enhance or reduce the penalty. (6) in any other case, he may pass such order in appeals as he thinks fit rent or a penalty cannot be enhanced or the amount of refund It may be noted that an assessm Jlant had @ reasonable opportunity of showing cause against cannot be reduced unless the appel such enhancement or reduction. ‘section 271): The Commissioner (Appeals) may impose penalty for not producing (6) Imposition of penalty (S i the booke of agcounts or other documents [Section 142(1)] or for concealment of income (under Section 2m), Jurisdiction of Income-tax Authorities (Section 120) Income-tax authorities are required to exercise or perform such powers or functions as are assigned to them by the Board [Section 120(1)]- Any income-tax authority, being an al 8nd performs the functions of the incom: Shall be deemed to be a direction issue + income-tax authority to issue orders in writing for the exercise o by all or any of the income-tax authorily who are subordinate the Board or any olher income-tex authority authorised by thority higher in rank, may, ifso directed by the Board exercise the powers .e-tax authority lower in rank and any such direction issued by the Board .d under Sub-section (1). an The Board may authorise any othe 8nd performance of the functions 120(2)), White issuing such directions, f the powers, to it [Section May take into484 EP-TL&P " of i classes of income, and (j account () territorial area, (i) persons or classes of persons li) incomes 0 meome, and (iy e classes of cases [Section 120(3)] RETURN OF INCOME [(SECTION 139(1)] begins with the fil an assessment of income ing of The procedure under the Income-tax Act for cae nt provisions relating to the furnishing ofa return gy of income. Section 139 of the Act contains the re! being a company or a frm or being Me According to that section it is statutory obligatory for every person bein ECT TT Tl me other than a company or firm to furnish a return of his total income or 1er per respect of which he is assessable under the Income-tax Act, in all caves where 7 dew ICOME oF the income of any other person for which he is liable to be assessed exceeds, in yr peat secon an maximum amount which is not chargeable to income-tax. The return of incor 38 furmished by ye assessee in the prescribed manner by the Board from time to time. It should be obligatory forthe firm to file retun of income in every case. Further, in respect of individu, ye AOP, BOI, Artifical juridical Person, filing of retum of income shall be compulsory if their total income bejgg allowing deductions under Sections 10A, 10B,10BA or chapter VI-A exceeds the maximum amount which gn, | chargeable to income tax. {Compulsory filing 6flincome Tax return In\relation to assets located outside india) From assessment year 2012-13, it is mandatory to file a return of income where a person, being a resident othe, than not ordinarily resident in India and who during the previous year has any asset (including any financi interest in any entity) located outside India or signing authority in any account located outside India, In such a case, it is immaterial that the taxable income is less than the maximum amount not chargeable to tar [Exeiiption from fling of Return of income” peer | CBDT has clarified vide Press Release [No. 402/92/2006-MC (15 of 2012)], dated 20-7-2012 that under what conditions exemption from filing of return is available, Exemption is available to salaried employees from the requirement of filing the returns for A.Y. 2012-19. The exemption is applicable only if all the following conditions are fulfilled: ~ + Employee has eared only salary income and income from savings bank account and the annual interest eamed from savings bank account is less than 710 thousand. * The total Income of the employee does not exceed @ 5 Lakh (Total Income means Gross Total Income Less deductions under Chapter VIA). * The Employee has reported his PAN to the employer. * Employee has reported his income from interest on savings bank account to employer. Employee has received Form 16 from his employer. Total Tax Liabilly of employee has been paid off by employer by way of TDS and employer has deposted TDS with central government. * Employee has no refund claim. * Employee has received salary only from one employer. * Employee has not received any Notice from Income ‘Tax Department for filing of Income Tax returm (Duc dete oring rotaLesson 11 » Procedure for Assessment 485 cficer calling for the filing of the return. time limit for fling of the return by an a 'SSessee if hi f any oth ' sal : is total income of any other Person in respe jg9ssess@ble exceeds the maximum amount net chargeable to tax, shall lou MEE (a) Where the assessee is — () a company, (i) @ person, other than a comy . Pany Whoss Act of any other law, for the time bers appa are required to be audited under the Income-tax | j Gil) a working | aie imines ofa firm whose accounts are required to be audited under this Act or under any 2ing in force, the 3oth day of September of the Assessment Year. |p) Inthe case of : fe © GEE, the BOT aoe nes2e Being a company, which is required to furnish a repor referred to in section | , the 80th day of November of the assessment year | (0) in the case of any other assessee, the 31st day of July of the Assessment Year. | Fling of Income Tax Returns is a legal obligation of every person who total for the previous year exceeds the |_ exemption limit provided under the Income Tax Act, 1961. The Income Tax Department has introduced on line facility in addition to conventional method to file retum of income. The process of electronically filing of Income Jax return through the mode of internet access is called e-filing of return. E-filing offers convenience of the tax payers. The only obligation for the user of this facility is to have a PAN number, There are eight forms from ITR- | [to ITR-8 for e-filing of returns. There is a provision e-filing for digital signature by the assessee. Bulking of es Finance Act, 2002 has introduced a new scheme of Bulk Filing of Return vide new Section 199(1A). According | othe new provisions, any person, being an individual who is in receipt of income chargeable under the head ‘Salaries’ may, at his option, furnish a retum of his income for any previous year to his employer, in accordance with such scheme as may be specified by the Board in this behalf. The employer shall furnish all returns of income received by him on of before the due date, in such form (including on @ floppy, diskette, magnetic cattidge tape, CD-ROM or any other computer readable media) and manner as may be specified in that scheme, | and in such case, any employee who has filed a retum of his income to his employer shall be deemed to have furnished a return of income under Section 199(1) and the provisions of this Act shall apply accordingly. However, the following returns of employees cannot be submitted under the above schemes: |. return of a year other than the current years Ul. return without PAN; ll, return under Block assessment, an one employer. IV. return of an employee having more th Powerte/GentrallGovernment: Section 139(1C) empower the Central Coceaneli : Of fumishing a return of income by issue notificat exempt any class or classes of persons from the requirement in the official Gazette.486 EP-TL&P RETURN OF LOSS- SECTION 139(3) sessee to fle a return of his total income der the head ‘profits and gains from us 8 der the head ‘Capital gains’. Unoe” The requirements of Income-tax Act making it obligatory aie ass equally even in cases where the assessee has incurred & 5 1S OF UN oF profession’ or dss from maintenance of one a ‘same time limits as required for a return of incom, assessee files a return of loss in the manner an inst income i , the assessee would not be entitled to carry forward the loss for being set off against income in the subseqyen, year. BELATED RETURN — SECTION 139(4) d under se has not fled the return within the time allo ic ee a by the Assessing Officer under section 142(1) may file a belated return the time allowe at any time before the expiry of one year from the end of the relevant assessment year or — before the completion of the assessment whichever is earlier. bs Example: For the previous year 2012-13, Mr. X did not file the return of income on the due date. Can Mr x”) file the retum of income after the due date? Correct answer: Yes, As per section 139(4), Mr. X can file a belated return. Mr. X may file the retum of income at any time on or before 31st of March 2015 (one year from the end of the Assessment Year 2013-14). RETURN OF INCOME OF CHARITABLE TRUST AND INSTITUTIONS = SECTION 139(4A) Sub-section (4A) of Section 139 also makes it incumbent of “every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes or of income being voluntary contributions within the meaning of Section 2(24)(iia)" to furnish a relum of income in case the total income exceeds the maximum amount not chargeable to tax. Further, one who is assessable as a representative assessee for the receipt of income derived from property held under Trust or other legal obligation wholly for charitable or religious Purposes or in part only for such Purposes or of income being voluntary contributions shall furnish a return of income of the previous year in the Prescribed form and get it verified in such manner as prescribed under Section 139(1), if the total income (without giving effect to the provisions of Sections 11 and 12) exceeds the amount not chargeable to tax. SUT Re re Nea xe Ey TET Tn SECTION 139(4B) g 3 2 ° g g 3 8 a & g 8 8 3 & g = g zLesson 11 = Procedure for Assessment 487 (@) fund:or institution referred to in Section 10(230)(W), ("+ (vi) or (via); (trade union referred to in Section 10(24)(a) or 40(24)(b), (@) body or authority or Board or Trust or Commission in section 10(46) (h) infrastructure debt fund referred to in section 10(47) isions of Section 10, exceeds the ich income of the previous year in uch other particulars as may be if it were a return required to be ‘ne above persons shall, ifthe total income, without giving effect to the prov! maximum amount which is not chargeable to income-tax, furnish a return of su the prescribed form and verified in the prescribed manner and setting forth s resorbed and all the provisions of this Act shall, so far as may be, apply as i fumished under Section 139(1)". REVISED RETURN- SECTION 139(5) return of income originally filed by Anassessee who Is required to file a return of income is entitled to revise the a ry by him, Such a revised return him to make such amendments, additions or changes as may be found necessal may be filed by the assessee at any time — before the expiry of one year from the end of the relevant assessment year = before the the completion of assessment whichever is earlier. Perea aeRO ESO) Ifthe Assessing Officer considers that the retum of income furnished by the assessee is defective, he may intimate the defect to the assessee and give him an opportunity to rectify the defect within 15 days from the date ofsuch intimation or within such further period as may be allowed by the Assessing Officer on the request of the assessee. If the assessee fails to rectify the defect within the aforesaid period, the return shall be deemed to be invalid and further it shall be deemed that the assessee had failed to furnish the retum. However, where the assessee rectifies the defect after the expiry of the aforesaid period but before the assessment is made, the Assessing Officer may condone the delay and treat the return as a valid return. Aretum of income shall be regarded as a defective return unless all the following conditions are futfiled: (@) the annexures, statements and columns in the return of income relating to computation of income chargeable under each head of income, ‘computation of gross total income and total income have been duly filed in; (b) the return is accompanied by a statement showing the computation of tax payable on the basis of return as well as the report of audit obtained under Section 4AB; (©) the return is accompanied by proof of: (0 the tax, if any, claimed to have deducted at source and the advance tax and tax on self-assessment, if any, claimed to have been paid; (i) the amount of compulsory deposit, if any, claimed to have been made (The scheme has been abolished w.e.. 1.4.1985). But a return shall not be called defective where itis not accompani to have been deducted at source, if: tax deducted was not furnished under Section 203 to the person furnishing his ied by proof ofthe tax, it any, claimeg (@) a certificate fo return of income; wyRe ic ‘ified under Sub-sectic (©) such certificate is produced within a period of two years specifi uPrsection (14) of Socio, 155", (6) where the reguar books of account are maintained by the assessee, the retums accompanigg, copies of: 488 EP-TL&P ‘account, profit and loss account or income and expe i it din (@) manufacturing account, tracing acca Peet itu account or any similar account 2 the personal account of the proprietor: j : tary business or profession, the F a Co ato ectociation of persons of body of individuals, personal accounts of the pany = ahaa ‘and in the case of a partner or member of a firm, association of persons or body or ; individuals, also his personal account in the firm, association of persons or body of individuals i 3 here the accounts of the assessee have been audited, the return is accompanied by copies ofthe (O ted proft and loss account and balance sheet and auditors’ report; and where an audit of cos, sccounts of the assessees has been conducted under Section 233B of the Companies Act, 1955 also the report under that section. () where regular accounts are not maintained by the assessee, the return is accompanied by a statement indicating the amounts of tumover or gross receipts, gross proft, expenses and net prof of te business or profession and the basis of which such amounts have been computed, and also disclosing the amounts of total sundry debtors, sundry creditors, stock-in-trade and cash balance as at the | end of the previous year. Note: Not relevant now as the assessee has to furnish annexure less return of income from assessment year 2007-08 and onwards. RETURN|FORMS: | ITR Forms Subject | R41 | (SAHA) For individual having income from salary and interest, imR2 For individuals and HUFs not having business/professional income. ITR3 For individuals/HUFs being partners in firms andnot carrying out business or profession under any proprietorship. | ITR4 For individuals and HUFs having income from Proprietory business or profession. ITR-4S (SUGAM) For Individuals/HUFs having income from presumptive business. ITRS For Firms, AOP and BOI. ITR6 For companies other than companies claiming exemption under Section 11. ImR7 For persons including companies required to fumish return under Section 139(4A)/ 189(4B)/139(4C)/139(4D). (not opting for e-fiing) Acknowledgement (TRY) Where the data of the retum of income/Frin i 2 1e benefit ITR-1, ITR-2, 1TR-4, ITR-S, ITR-6 & ITR. arin stare -8 transmitted electronically without digital signature.YW Lesson 11» Procedure for Assessment 489 Feist Khel) MLS) Ae au} ef. 18.2006, a new section 139B have been inserted in the Act so as to provide that for the purpose of bli Any specified class or classes of persons to prepare and furnish returns of income, the Board may, by of notification, frame a scheme providing that such persons may furnish their retums of income through a saxrelum preparer authorized to act as such under the scheme. This scheme is not applicable for a company or person who is required to undergo a ‘tax audit’ or ‘audit under any other law’ inhas been further provided that the Scheme framed under the sald section shall specify the manner in which the Tex return preparer shall assist the persons furnishing the retum of income, and shall also affix his signature en such return. | | rau SCHEME TO FACILITATE SUBMISSION OF RETURNS THROUGH TAX RETURN} | {Tax retum preparer may be an individual other than a person referred to in clause (ji) or clause {w of sub-section (2) of section 288 or an employee of the specified class or classes of persons, who has been authorized to act as a Tax return preparer under this Scheme. In other words, the following persons are not authorized to act as Tax return preparer: ~ any officer of a scheduled bank in which the assessee maintains a current account or has regular dealings. = Alegal practition - Achartered accountant. The Scheme notified under the said section shall provide the manner in which a Tax return preparer shall be authorized, the educational and other qualifications to be possessed, and the training and other conditions required to be fulfilled, by a person to act as a Tax retum preparer, the code of conduct for the Tax retum preparer, the duties and obligations of the Tax retum preparer, the manner in which the authorization may be withdrawn and any other matter which is required to be or may be specified. SIGNING OF RETURN (SECTION 140) The retun of income must be signed and verified: (@) In the case of an individual, () by the individual himself; (i) where he is absent from Indi in this behalf; 15 mentally incapacitated from attending o his affairs, by his guardian or any other person by the individual himself or by some person duly authorised by him (ii) where he is ‘competent to act on his behalf; and (iv) where, for any other reason, it is not authorised by him in this behalf: Provided that in a case referred to in Sub-clause (i) or (), the person signing the return holds a valid power of attomey from the individual to do so, which shall bo attached to the return: (0) inthe case of a HUF. by the Kara, and, where the Karta is absent from India or mentally incapacitated from attending to his affair, by any other adult member of such family (©) in the case of a local authority, the Principal Officer thereof; ariner thereof or where for any unavoidable circu and verify the return, or where there is no mana, possible for the individual to sign the return, by any person duly (4) in the case of a firm, by managing P Managing partner is not able to sign ‘ such, by any partner thereof, not being a minor, ne mstances such ‘ging partner as 2 a A ET RE OI ee490. EP-TL&P ignated partner thereot, or where forany Unaye, id verify the return, or wherethere is no deja lana py the desi tnership; ‘see to sign an (e) inthe case of a limited liabili riner is not able reason such designated pal partner as such, by any partner. (f) in the case of any other associat some perso! : by that person or (g) in the case of any other person, for an i by the managing director thereof, or where y unavoidable reason eu 1h) ln the on oe i here there is no managing director, by managing director is not able fo sig" the return or wi yaya thereof. Provided that where t person who holds a val retum: Provided further that ? (@) where the company is being wou : any person has been appointed as the receiv’ be signed and verified by the liquidator referre fon, by any member of the association of Principal Officer there, n competent to act on his behal. nt in India, the return may be signed and veritieg is not resider . fhe company such company to do 0, which shall be attached tog lid power of attorney from indup, whether under the order of a court or otherwise, oF wher fer of any assets of the company, the retum shay .d to in Sub-section (1) of Section 178; (b) where the management of the company has been taken over by the Central Government or any State Government under any law, the return of the company shall be signed and verified by the Principal Officer thereof, ‘ed-to in Sub-section (4B) of Section 139, by the Chief Executive () inthe case of a political party referr Officer of such party whether such Chief Executive Officer is known as secretary or by any other designation. PERMANENT ACCOUNT NUMBER (SECTION 139A) Every person, who has not been allotted any permanent account number, is obliged to obtain permanent account number, if; is total income assessable during the previous year exceeds the maximum amount which is not chargeable to tax or ~ any person carrying on business or profession whose total sales turnover or gross receipts are or is likely to exceed %5,00,000 in any previous year or ~ Is required to furnish a return of income under Section 139(4A) ee 7 hie Assessing Officer may also allot a permanent account number to any other person bY has been ane oF 7 ea fan fae aise apply for a permanent account number. However, Section 199 v Ms , 1998 and provides the alternati i 3 iste) Pumber il such time the permanent account number's allotted, Vd GIR (General a P WER DELEGATED TO CENTRAL GOVERNMENT The Central Gov ; AeNSS whom taxis pay RooTaErn, by notification in the Official Gazette, specify, any class or classes of persons by including importers and ex, one Act or any tax or duty is payable under any other law for the time being inf! time as mentioned in that voting en TY '2Xis payable by them or not and such persons shal, within number, clification, apply to the Assessing Officer for the arsine i _ permanent accou!Lesson 11 Procedure for Assessment 491 OTING OF PAN > GOING OREN pe, ape inshall be the duty of eve, 0 i wr of any SUM, quote such numb Board in the interest of rave, quote such number in th Income tax authorties, quote such numbers inal callane for the payment In all documents pertaining to such transactions as may be prescribed by the nue. Property valued at & § lakhs or more. (©) Sale/Purchase of Motor vehicle or a y side-car having ar chicle (excluding two wheeled vehicle, inclusive of any detachable Which requires registration under Motor Vehicles Act, 1988. (©) @ (€) Contract for sale/purchase of seq () Opening an account [not being ti Institution. ime deposit mentioned in (c)] with a Bank/Banking Company/Banking 1} (h) Payments to hotels of bills exceeding & 25,000/- at any one time. () Payment in cash for purchase of 50,000 or more during any one day Application for installation of a telephone Connection including mobile phone. bank drafts or pay orders or banker's cheque for an amount of Z y. () Deposit in cash aggregating 250,000 during any one day. (k) Payment in cash in connection with travel to any foreign country of an amount exceeding 225,000 at any ‘one time. ()) Making an application to any banking company or to any other company or institution for issue of a credit or debit card. (m) Payment of an amount of %50,000 or more to a Mutual Fund for purchase of its units, (n) Payment of £50,000 or more to a company for acquiring shares of debentures or bonds issued by it (0) Payment of 750,000 or more to RBI for acquit g bonds issued by it. (p) Payment of an amount of 250,000 or more as life insurance premium to an insurer, (t) Payment to a dealer (i) of an amount of 85 lakh or more at any one time, or (i) against a bill for an amount of %5 lakh or more for purchase of bullion or jwellery. ji) against tit the prescribed transactions, shall ensure that the Perman : ‘ument relating to rent Every person, receiving ae quoted inthe document. The Board tas been empowered to make rulse ny RRP aoe manner in which the application for the allotment of a Permanent account number Salion to the form and the application wilco prserBing he categories of ansacionsandthecatee endthepariculars oe ‘fo business or profession in which he permanent account numbers shen have to be locuments pertainin Guoted by every person. The “permanent account number nder the new series’ has been defined to mean a number w ul i Jaminat alphanumeric characters to be issued on & ae hich will have ten ~