Return Of Income

Group 3
• Arwah Bagasrawala-5
• Zeenat Mukhi-80
• Subhan Nasibdar-82
• Shubhangi Sonar -115
• Meherbakhsh Wadia-124
• Ananya Sancheti-128
 What Is Return Of Income
• It is mandatory for every Taxpayer to communicate the details of his
Income to the Income Tax Departmen.These details are to be furnished In
the Prescribed Form known as ‘Return of Income’.
 Compulsory Furnishing of Return Of Income
Section 139(1)
• Every Person being a company or a Firm (Including LLP) has to mandatory file a return
of Income irrespective of its income or loss
• Every person being an Individual/HUF/Association of Persons (AOP)/Body of
Individual(BOI)whether incorporated or not/An Artificial Juridical Person –
1)Whose total income or the total income of any other person in respect of which he is
assessable under the act during previous year
2)Without giving effect to the provision of S.10(38),10(A)or 10(B)or Chapter IV-A
3)Exceeded the basic exemption limit is required to file a return of Income on or before
the due date in the prescribed form.
Compulsory furnishing of Return of Income
Section 139(1)
• Beneficial Owner or Beneficiary of an Asset located outside India:
The fourth proviso to section 139(1)has been substituted from the A.Y 2016-17
now requires to file mandatory return of Income or loss on or before dues date by
every person being a resident other than ordinarily resident in India within the
section6(6)who is not required to file a return under section 139(1)if such a person
• Holds a beneficial owner or otherwise any asset located outside India or had a
signing authority in any account located outside India or
• Is a beneficiary of any asset(including financial asset)outside India .
 Due Date for Furnishing The Return of
Income
• 30 September of the assessment year in case the assessee is:
1)A company
2)A person (other than a company)Whose accounts are to be audited as per the Income Tax Act
1961 or any other law for the time being in force for the time being
3)A working partner of a firm Whose account are to be audited as per the Income tax Act 1961
or any other law being in force for the time being.
• 30 November of the assessment year in case of an assessee who is required to furnish a report
referred to in section 92Eb(assessees who have undertaken international transactions)
• 31 July of the assessment year in case of any other assesee
 Furnishing Return to the Employer Section
139(1A)
• Employee:This section gives an option to a person ,being an individual who is in receipt of
income chargeable under the head ‘Salaries ‘,to furnish a return of income for any previous
year to his employer in accordance with such scheme as may be notified by the CBDT and
subject to such conditions as mat be specified therein
• Employer:Such Employer shall furnish all returns of income received by him or on 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 maybe specified in that scheme
• Deemed:In such a case ,any Employee who has filed return of his income to his employer
shall be deemed to have furnished a return of Income under sub section(1)
 Income Tax Return Through Computer
Section 139(1B)
• CRM:This sub section enables the taxpayers to file the return of his income in
computer readable media (CRM)Without the Interface with the department
• Option:It provides an option to a person (both corporate and non corporate)required to
furnish a return of his income.
• Scheme:Such a person may,on or before of the due date,furnish a return of Income in
accordance with such Schemes as may be notified by the CBDT,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 that scheme
• Deemed:Such return shall be deemed to be a return furnished under the section 139(1)
 Persons Exempt From Filing Return,Section
139(1C)
Under the notified scheme,if the following conditions are satisfied, the taxpayers has an option to submit his return of income or not to submit
his return of income if
• The taxpayer is an individual.He may be resident or non resident
• The individual has reported to his employer his Permanent Account Number (PAN)
• His taxable income does not exceed Rs 500000.Taxable Income should consist of salary and or saving bank account (Interest not
more than Rs.10000)
• The individual has reported to his employer his saving bank interest for the purpose of calculating tax deductible under section 192
• The individual has no claim of refund of tax due to him for the income of the Assessment Year.
• The individual has received salary from only one employer for the Assessment Year
• The individual has received a certificate of tax deduction in Form No.16 from his employer which mentions the PAN,details of the
Income, tax deducted at source by the employer and deposited to the credit of the Central Government.
However, incase notice under section 142(1),148,153A or 153C has been issued for filing a return of Income for the relevant
Assessment Year ,exemption is not available.
 Return Of Loss Section.139(3)
• This section requires the assessee to file a return of Income of loss in the same manner as in the case of Return of
income within the time allowed under section 139(1)
• Under section 80,an assessee cannot carry forward or set off his loss against income in the same or subsequent year
unless he has filed a return of loss in accordance with the provision of section 139(3)
• A return of loss has to be filed by the assessee in his own interest and the non recipient of a notice from the assessing
officer requiring him to file the return cannot be a valid excuse under any circumstances for the non filing of such
return
• In particular, a return of loss must be filed by an assessee if incurred loss under the heads’Profits and gains from
business or profession’,’Capital gains’ and income from the activity of owning and maintaining race horse taxable
under the head ‘Income from other sources ‘
• However, loss under the head ‘Incomr from House property ‘under section 71B and unabsorbed depreciation under
section 32 can be carried forward for set off even though return of loss has not been filed before the due date.
 Belated Return Section. 139(4)
• Any person who has not furnished a return of Income within the time allowed to him under section 139(1)may file a
return for any previous year at any time
1)Before the end of the relevant assessment year or
2)Before the completion of the assessment year whichever is earlier.
• A belated return cannot be revised.Only a return filed under section 139(1)or notice under section 142(1)can be revised.
But under section 139(4)it cannot be revised
• Following consequences are there for delay in filing the return of income
1)Loss other than loss from the head ‘Income from house property’ cannot be carried forward
2)Levy of interest under section 234A
3)Penalty of Rs 5000 under section 271F can be levied if return is filed after the end of the assessment year.
• Certain Exemptions or deductions u/s 10A,10B,80-IAB,80-IB,80-IC,80-ID and 80-IE are not available.
 Revised Return Section.139(5)
• If any person having filed a return u/s 139(1)or 139(4)discovers any omission or any wrong
statement therein,he may file a revised return at any time before the end of the relevant
assessment year or before completion of assessment whichever is earlier
• Once a revised return is filed,it replaces the earlier return. This signifies that the revised return
should be complete in itself and not merely an accessory to original return
• A revised return can again be revised which means a second revised return can be filled
u/s139(5) for correcting any omissions or wrong statement made in the first revised return
within specific time
• A loss return can be filed however return filed to notices under section 142(1)cannot be
revised.
 Particulars Furnished with
Return ,Section 139(6)
• The prescribed form of the return shall,in certain specified cases,require
the assessee to file the particulars of
1)Income exempt from tax
2)Assets of the prescribed nature and value held as a beneficiary
3)His bank account and credit card held by him
4)Such other outgoings as may be prescribed.
 Particulars of Business with Return ,Section
139(6A)
• The prescribed form of the return shall, incase of an assessee engaged in any business or profession also
requires to file
1)The report of any audit referred to in section 44AB
2)The particulars of the location and style of the principal place where hr carries on the business or
profession and all the branches
3)The names and addresses of his partners, if any,in such business or profession
4)If he is a member of an association or body of individuals
• The names of the other members of the association or the body of individuals and
• 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.
 Defective Return, Section 139(9)
• Under this sub section,the Assessing Officer has the power to call upon the assessee to rectify a
defective return.
• Where the AO considers that the return of income filed by the assessee is defective, he may intimate the
defect of the assessee and give him a chance to rectify the defect within 15 days from the date of such
intimation.
• If the defect is not rectified within the period of 15 days or such further extended period,then the return
would be treated as invalid return.The consequential effect would be the same if the assessee had failed
to file the return
• However, if the assessee rectifies the defect after the expiry period of 15 days or further extended
period, but before assessment is made, then the AO can condone the delay and treat the return as a valid
return.
Conditions/Reasons of Defective Return
• A return of tax shall be regarded as defective return unless all the following conditions are fulfilled :-
1. A return in the prescribed form with all annexure, columns and statements duly filled in
2. A statement showing the computation of payable tax
3. Proofs of tax if any claimed to have been deducted or collected at source and Advance Tax or Self
assessment tax if any claimed to be paid
4. It shall be defective if there is no proof of tax if any claimed to have been deducted or collected than
1)A certificate for tax deduction or collection was not filed to the person filing his return of income of tax.
2)Such certificate is provided within a period of 2 years from the end of the relevant Assessment year
5)Report of the audit u/s 44AB or where the repost has been filed prior to the filing of a return, a copy of such
report together with the proof of filing the report.
 Condition/Reason of Defective Return.
6)In case where cost audit under companies act u/s233B now as section 148 of the companies act 2013 the return should
be accompanied by such report
7)In case regular books of accounts are maintained by the assessee than copies of manufacturing account, trading
account, profit and loss account or any other similar account and balance sheet
• The personal account of proprietary business –personal account of the proprietor, for firm or association body of
individuals-personal account of the members or partners and for partners members of such-Partners personal account
in firm, members personal account in the association or body of individuals.
8)In case regular books are not maintained by the assessee the return to be accompanied by
• A statement of turnover or gross receipt amount, gross profit, expense and net profit of the business
• The basis on which amount mentioned in the above statement have been computed
• The amounts of total sundry debtor’s,sundry creditors, stock in trade and cash balance at the end of the previous year
Thankyou.