PROVISIONS FOR FILING OF RETURN OF INCOME axable) to communicate the details of ji, be furnished in the prescribed form knows about the various provision, It is mandatory for every assessee (whose income is t income to the Income-tax department. These details are to as return of income (ROD. In this chapter, you can gain knowledge relating to return of income. c limit for filing return of income [Section 139(1 Due Date for filing of return under different situations: * Where the assessee is a company then, 31st October of A.Y. Where accounts are required to be audited under any law then, 31st October of A.Y, If the assessee is a “working partner” in a firm whose accounts are required to be audited under any law then also 31st October of A.Y. ** In any other case 31st July of AY. NOTE: If the last day of filing the return of income is a public holiday, the assessee can file the return on the next working day on which the office is open. Income‘Tax Return: ‘There are 5 types of Income Tax Returns filéd,undér séctioh 139. of Income Tax Act, 1961 namely - I. Voluntary Return & Mandatory Retitn (Nofifial’Rettimn) U. Return of Loss : _ Til. Belated Return IV. Revised Return V. Defective Return. Voluntary Return & Mandatory Return: Return of ingomié/jig to be filed compulsory by the following persons: yo. ° (i) Every company or partnership fir shiall,be required to file the return of income. (ii) (iii) Every person who is assessable on behalf of any other person and the person on whose behalf he is assessable has gross total income more than the income exempt from tax Every person whose GTI (without givingexeniptions.u/® 10) is exceeding exemption limit (iv) Every person whose gross total income exceeded the exemption limit. (v) Every person who is taking benefit of exemptions w/s 54, 54B, 54D, S4EC, 54B, 54G, 54GB etc (vi) Every charitable trust, whose gross total income before permitting exemption under section 11 and 12, is exceeding the income exempt from tax, shall be required to file the return of income (vii) Every political party having gross total income before permitting exemption under section 13A, is exceeding the income exempt from income tax, is also required to file a return of income. (viii) Every person who enter into certain high-value transactions are required to furnish his return of income on or before the due date. These high-value transactions are as under: a) Who has deposited exceeding one crore rupees in one or more current accounts maintained with a bank b) Who has incurred expenditure exceeding two lakh rupees for travel to a foreign country c) Who has incurred expenditure exceeding one lakh rupees on consumption of electricity.rms of Return of income ‘As per Rule 12, every assesse: ¥ e has 4 i A Bien below. to file return of income in the prescribed form and such forms are SAHAJ (ITR-1) ene Resident Individual, who has “Income from Salary” and/or “Income {arian eae having more than one house and not have brought FOr Ti oe ico fiom other sources”, except casual income Tea Is an HUES not having Income from Business or Profession WP No. rrr 3 ndividuals/HUPs being partners in firms and not carrying out business ot profession under any propri Form No. ITR-4 proprietorship Form No. ITR-2 a individual & HUF having income from a proprietary business or profession Fesumptive Business Income; A person being an individual, a HUF ora Firm SUGAM (ITR-4S) deriving business income and such income is computed w/s 44AD, 44ADA or Form No. ITR-5_| For firms AOPs and BOls Form No. ITR- 6 _| For Companies other than companies claiming exemption under section 11 Form No. ITR-7_| For charitable institutions, religious trusts, political parties etc. ITR-Y stands for “Income-Tax Return Verification’ Form. It is received when Form No. ITR-Y | file return without using a.digital signature. It is issue by the income-tax department. What is E-filing of return? ‘The Electronic Return of Income tax was introduced in 2004: Under this scheme, eligible assessees can file their returns of income electr« ‘on,or before, thé, due date. MANDATORY E-FILING OF INCOME TAX RETURNS: Online returns are submitted with digital signature or without igi in) Jcircimstances digital signatures are essential for online returns and undeteSome, circumstancess refiiins can also be deposited without digital signature. Following persons arétequired to file income'tax return online * An Individual or HUF or FIRM, wh¢sesaccoulits are subject to tax audit u/s 44AB, has to file income tax return electronically under digital’signature. © If the accounts of a firm are not audited@underséClion 44AB then the return can be filed electronically with or with out digital signature. + Eyery company has to file its income tax retum electronically under digital signature in all cases. * A resident Indian, who is having any assets located out of India, will furnish income tax return electronically with or with our digital signature. + Any person whose total income exceeds %5,00,000, has to file income tax return electronically with or without digital signature. + A political party who is liable to file income tax return shall furnish the return in electro with digital signature «Any other person ean also file his/her return electronically with or without digital signature ally Procedure for E-FILING of TAX RETURN: 1) Select appropriate tax return form here:https:/incometaxindiefiling gov in/portal/selecttorms do 2) Download the relevant Excel spreadsheet, 3) Fill your tax return form offline and save the XML file generated by the software, indiaefiling.gov.in 4) Register with http://incometv PROVISIONS FOR FILING OF RET 5) Log in and click the relevant form on the ieft panel and select "Submit Return" ©) Now upload the XML file and print the acknowledgement / ITR-V Form 2) TEthe return includes digital signature, the process is over. Else, you get a verification form ([TR_ Y), Sign it and mail it to ‘Income Tax Department - CPC, Post Bag No - 1, Electronic City Pos Office, Bengaluru - 560100, Karnataka! by Post within 120 days of submitting the return ical copy of the ITR-V form, you will get an 8) Once the tax department receives the phy acknowledgement by email Penalty for Not Filing or Late Filing of Return (Section 234F): Ifa person fails to file the return on time then penalty shall be imposed as under If Total Income does not Exceed %5,00,000 then, penalty will be 71,000. If Total Income Exceeded 25,00,000 and return is furnished on or before 31 December of A.y, then, %5,000. Pg Total Income Exceeded %5,00,000 and return is furnished after 31% December of A.Y. then, 10,000. n_ 140]: Return to be verified*by whom [Sec The return of income is to be verified by: In the case of an individual: (i) By the individual himself; or (ii) Ifhe is absent from India, then/by-some person, duly authorised by him in this behalf, and (iii) Ifhe is mentally incapacitated from atteidiig to His affairs) then by his guardian. In the case of Hindu Undivided Fai By the karta, and, where the karta is absent from India or is mentally incapacitated, then by any other adult member of such family; In the case of a firm: By the managing partner, or where for any siayoidable/reason such managing partner is not able to verify the return, or where there is no maniaging partner; then by any partner except minor. In the case of a company: i (i) By the managing director, or where for any unavoidable reason such managing director is not able to verify the return, or where there is no managing director, then by any director; oF (ii) If the company is being wound up, the return shall be verified by the liquidator; and (iii) If the management of the company has been taken over by the central government oF aly state government under any law, the return of the company shall be verified by the principal officer; In the case of a local authority: By the principal officer. In the case of any other association: By any member of the association or the principal officer In the case of a political party: By the chief executive officer of such party, a Tm Awsessee Signatory Tndividu (@ Himsel? ff absent from India or mentally injured or | (ii) His guardian or any other person competent t0.a¢t forany other reason ie is notable to on his behalf duly authorised by hinn, Soniventy TU. (indo Undivided Family) (Kana i) Hrabsent from India oris mentally injured. | (ji) Any other adult member of the familyprovisl ONS FOR FILING OF RETURN OF INCOME & p company (i) LOMAD, 4s absent or unable to sign/verity (ii) When company is not resident in India (jy) When the company is in liquidation (v) When the company’s management is taken ver by the Central/State Government () Managing Director (ii) Any other Director (iii) Any person who holds a valid Power of Attorney (iv) The liquidator (¥) The Principal Officer. : (i Partnership firma ,_ | G) Limited Liability Partnership. 1(@) Managing partner or other partner not being a ‘minor Gi) Nominated (Designated) Partner |<] @iLecal Authorit —< LG) Political Party [7 Association of Persons oF BOL Return of Loss [Section 139(3) (@) Principal Officer. (i) Chief Executive Officer: (i) Any member or Principal Officer sfany petson has any loss and that loss is to be carried forward, such person has to file a return of Joss and the loss computed by the assessee shall be confirmed by the Assessing Officer by sending intimation under section 157 and only after that carry forward of loss shall be allowed to the assessee. Return of loss has to be submitted, eR Oa yefmned on tho bsisrf Retum, it will not be allowed to be form and it should be verified in the prescrib Tf any loss has not been det carried forward and set off, f8 | NOTE: The above provisions are not fipplicdble with regdtd tO\l0xs under the head house properly and also it is not applicable with regafd fo unabsorbed depreciation. z ithin,the time and it should be in the presoribed Belated retuihl(Sedtibnl 13914) If the person fails to file the return arcte ‘within the prestfibed time-limit, then he can file a belated return, A belated return can Bejfiles before completion of assessment, whicheVe Delay in filing the return of income may"alt the consequences of delay in filing the return’bbiredm forward. }) Levy of interest under section 234A. date of filing of return ieheVer is earlier” fore the énd ofthe relevant assessment year or Loss (other than loss under the head “Income from house property”) eannot be carried i) Penalty of 21,000 / 5,000 / 740,000 (ws 234F) can be levied if return js filed after the due (iv) Exemptions & deductions under sections 10, 10B, 801A, 8OIAB, 801B, SOIC and SOIE will be not allowed. ‘A Revised return is a return which is filed u/s 139(5) as revision for the original return, Sometimes the assessee may omit to include certain information in the return or may commit any mistake at the time of filing the return of income, In such case any w intentional mistake or error or “omission in the return of income ean be corrected by filing a revised return. ‘A revised return of income can be filed till the end of the relevant assessment year or before completion of assessment, whichever is earlier. For example: If an assessee files the return for P.Y. 2020-21 on 8 th July ‘or before the completion of Assessment, whichever is earlier. a a (Noi ‘Mistake or error or omission in the return has not been made int jonedilly.——— to be defective, then he may intim, him to rectify such defect. If the Assessing Officer finds the return of income defect to the assessee and may give an opportunity to The assessee shall rectify such defect, within a period of 15 days of such intimation or within gua, further period as the Assessing Officer may allow If the defect is not rectified within aforesaid period, then the return shall be treated gs an invalid return and it will be treated as the assessee had not filled the return Tf assessee rectifies the defect after the aforesaid period but before the assessment is made, then the assessing officer may condone the delay and treat the return as valid return, A return of income shall not be treated as defective if all the following cond 1. Computation of income under each head, computation of gross total income and total income have been duly filled in, 2. The return has been submitted with a computation of the tax payable. 3. The return has been submitted with the audit report 4, The return has been submitted with the proof of the tax, proof of TDS/TCS, proof of advance tax and proof of self-assessment tax, Note: Proof of TDS/TCS can be produced.Within.a Period of two years from the end of the assessment year in which such income is assessable. te such ns are fulfilled 5, If books of account are maintained py’ the’assessee, then Copies of manufacturing account, trading account, profit and loss account or income ‘and expenditure account, balance sheet, personal account of the proprietof or personal accounts of the partners must be attached If the accounts have been audited, then retuin must be submitted with copies of the audited profit and loss account, balance sheet andthe au 7. Where books of account are not mainti uined by the assessee, then he must attach, a statement indicating the amounts of turno¥ers r \gross receipts, amgunts of sundry debtors, sundry creditors, stock-in-trade and cash he previous year. balance'as at the-énd Permanent Account. Full form of PAN is Permanent Account Number. PAN is a ten-digit unique alphanumeric number issued by the Income Tax Department. It is commonly known as PAN card. The PAN cat is issued as a plastic card according to the picture given below: Permanent Account Number is basically a method of identifying a taxpayer through 2 unique number, so that all information relating to that taxpayer (taxes paid, refunds issued, outstanding arrears, income disclosed, tansactions entered etc.) can be linked through the computer syste™ Permanent Account Number (old series) was first introduced in 1972 and mate statutory weet. Ist April, 1976. However, the PAN under old series failed due to few reasons:)R FILING OF RETURN OF INCOME. (ee ON is at) Ly But it was amended wef 1.7.95 4 «af allot Of PAN ea 'o enable allotment of PAN under new series cr aac: sn cout eT ler new series w.e.’ 1.6.96 in Delhi, Mumbai and .e new series of PAN: roti vl ‘The Permanent Account Number under new series is based on Fit name ofthe taxpayer, pate of birth / Date of Incorporation, i; gyatus, and : Father's name in case of individuals (also inthe cases of married women) ‘These four fields are called core fields, without which PAN can not be allotted. stem automatically generates a 10 character PAN using the i ion i ot proms ee using the information in above five core ure of PAN - AAA § A 1234 A ritst Three Digit | Alphabetic series running ftom AAA to ZZZ pvt Fourth Digit _ | Status (ie, P For Personal, C for Corporate, F for Firm, H for HUF etc.) First character of assessee’s Last Name/ Surname Sequential Number running from 0001 to 9999 Alphabetic digit ast Digit How to apply for PAN? AJAY. \\a\ income Tax Department has sap Infrastructure Technology and Services Limited (UTITSL) and National Securities Dépo: SARE SDL) tb manage PAN Service Centers UMITSL and NSDL have established BAN Service Centers/andfTIN Facilitation Centers at various places in major cities of India. Wo \ f/f &/ Thus, a person sing gin PANee&n appl,by submitting the application form (Form 49A/49AA) along with the related, Yatimentse AFisdribed fees at the PAN application center of UTITSL or NSDL. A resident perSoiyshall apply for PAN in form 494 and a non-resident yeson including a foreign company shall apply=for*éllotment of PAN in form 49AA. Online ‘pplication can also be made from the website of UTITSL or NSDL, Individual applicants will have to affix two recent coloured photographs on PAN ‘pplication form, Prescribed document must be furnished as a proof of ‘Identity’ ‘Address’ and ‘Date of Birth’, Every person shall quote his Aadhaar Number on application form for allotment of PAN and return of income furnished on or after 01.07.2017. If the person does not possess Aadhaar Nutnber, the enrolment ID of Aadhaar application form shall be quoted. Designation and Code of concerned Assessing, Office will have to be mentioned in PAN application form. Who has to obtain PAN? PAN is to be obtained by the following person: Persons whose total income exceeds the exemption limit (amount which is not chargeable to tax), < ” A charitable trust who required to furnish return, Y Persons who is carrying any business or profession, whose total sale (turnover or Bross receipts) _, exceeding %5,00,000 (five lakh) in any previous year ; Every importer or exporter Persons whose tax has been deducted at source Persons who is liable to pay excise duty CSEPROVISIONS FOR FILING OF ars... Exci ules, 1944: Bee eee ear nale 57AB of Contal Btz#2 Xe ee srritory. A Y , Persons registered in GST of relevant state oF union te! v if actions in which quoting of PAN jg transi financ Persons who enter into spi mandatory at) who enters into a financial transaction of an amount aggregating to Rs, 2,50,000 or more during @ financial year, re to ete PAN with effect from April 1, 2018. (Whether he is a manag’ director, director) Pe aed author, founder, karta, chief executive officer principal officer or “office bearer of such person or on behalf of such person) Y A person not covered in any of the above can What are the specified financial transactio g Any resident person (not being an individu voluntarily apply for PAN. ‘ ng in which quoting of PAN is mandatory? Following are the transactions in which quoting of PAN is mandatory by every person except the Central Government, the State Governments and the Consular Offices than two wheeled vehicles. ') with banking company or 1. Sale or purchase of any motor vehicle or vehicle other 2, Opening any account (other than time-deposit & basie saving account co-operative bank. 3. Making application for issue of a credit or debit card . Opening of demat account with SEBL fan amount exceedifg’%50,000 to hotel ot\festaurant against bill at any one time “iHlan, 250,000, inj réspest of foreign travel or foreign 4. 5, Payment in cash o! ‘At the time of cash payment of miox exchange. {gs 1. Payment of an amount exceeding, 250,000 fo, 2 aMutual Fund for purchase of its units, 8, Payment of an amount exceeding) %50,000 10a “company, or an institution for purchasing debentures or bonds issued by it 6, Payment of amount exceeding 50,000 for;purchasing Bonds}ssued by Reserve Bank of India 10. Deposits of cash exceeding %50,000 during any pne day in a bank or a co-operative bank 11, Payment in eash for amount execeding %50,000,during.afly one day for purchase of bank drafts oF pay orders or banker's cheques from a bank or a co-operative bank e deposit of an amount exceeding 50,000 or aggregating to more than %5 lakh during @ financial year with — ‘a bank or a co-operative bank; a Post Office; iii, Nidhi referred to in section 406 of the Companies Act, 2013 or iv. anon-banking financial company. j 13, Payment of an amount exceeding aggregate %50,000 in a financial year as life insurance premium 14, Sale or purchase of shares of an unlisted company for amount exceeding @1 lakh per transaction. 15, Sale or purchase of any immovable property for an amount exceeding €10 lakh. 16, Sale or purchase of goods or services of any nature oth i Sale of eee ak por tansection er than those specified above, for an amouml ce DS anaes NOTE: Minor person can quote PAN of his guardian ifhe does not have any chargeable income TE: Any person, who does not have PAN and er int ee No. 60 ters into any of above transaction, can make a declaration erson fails to comply with the requirement of quoting the PAN or furnish incorrect Penalty: If a p ing Officer may levy the penalty of 210,000 u/s 272B. — — - - DAN then AssessitQuestion 1: What are the steps for e-filing of Income-tax return? (4 Marks, 2916-17) Question 2: What is Belated Return? (4 Marks, 2017-18) Question 3: Write notes on the following: a. Voluntary Return of Income (8 Marks, 2017-18) b. Permanent Account Number (PAN) (7 Marks, 2017-18) Question 4: What do you understand by Permanent Account Number? What are the consequences for failure to apply for the allotment of a permanent account number (15 Marks, 2018-19) Question 5: Write a note on Permanent Accoyfit lumber (4 Marks, 2016-17 & 2019-20) Question 6; What is income tax return? I; ¢ tax return? Discuss the procedure for filing income tax return online, (KUK 2015-16 & 2020-21)