Return of Income (Part - 1) - Taxation | Income Tax for assessment (Inter Level) PDF Download

Who is Rquired to File the Return of Income

Section 139(1). Individual / HUF / AOP / BOI
Every Individual / HUF / AOP / BOI is required to file their return of income if their gross total income + income u/s 10(38) exceeds basic exemption.
Example

Section 139(1). Company or a Firm
Every firm or company is required to file their return of income irrespective of income or loss. For every type of company whether Indian Company or a foreign company resident or non resident is compulsory to file the return of income.

Explanation 2 to Section 139. due dates of filing of Income Tax Return?

Note 1: When the last day of filing of return is a day in which office is closed on account of holiday or for any other reason, the return can be filed on next day when office reopens.
Note 2: Where the return is not filed within due date of furnishing of return assessee is liable for interest u/s 234A @ 1% p.m. or part of the month.
Note 3: Section 271F. Penalty for failure to furnish return of income: If a person who is required to furnish a return of his income, as required under section 139 fails to furnish such return before the end of the relevant assessment year, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of Rs. 5,000.
Note 4: Section 273B. Penalty not to be imposed in certain cases: Notwithstanding anything contained in section 271F no penalty shall be imposable on the person or the assessee, for any failure referred to in section 271F if he proves that there was reasonable cause for the said failure. Burden of proof is on the assessee that there was reasonable cause of failure.

P1 : Find out whether following persons are required to file their return of income, if yes, find out its due date.

Section 142(1)(i). Filing of Return under the Order of Assessing Officer
Where a person has not made a return within the time allowed under section 139(1) or before the end of relevant assessment year, then the assessing officer may issue a notice requiring him to furnish the return of income within the time specified in the notice.

LOSS RETURN Section 139(3) read the section 80

Section 139(3) If a person has sustained a loss under the head “Profits and gains of business or profession” or under the head “Capital Gains” and claims that such loss should be carried forward under section 72 or section 73 or section 74 or section 74A, then he may furnish a return of loss within the time prescribed under section 139(1) and all provisions of the Income-tax Act shall apply as if it were a return furnished under section 139(1).

Section 80 Notwithstanding anything contained in Chapter VI, the loss which has not been determined in pursuance of a return filed in accordance with the provisions of section 139(3), shall not be allowed to be carried forward and set-off under section 72 or section 73 or section 74 or section 74A.

Note 1 : If loss return is filed as per section 142(1) then loss cannot be carried forward.

Section 139(4). Belated Return

Meaning : A belated return is a return which is not filed in prescribed time as mentioned u/s 139(1). Time limit for filing a belated return : A belated return may be filed at any time on or before the end of relevant assessment year (AY 1) or before the completion of best judgement assessment whichever date is earlier.
Note 1: The date of completion of assessment is date on which assessment order was passed (signed) and not the date of service of notice of order upon the assessee (received). E.g. Date of signing of BJA order is 31-12- 2017 then last day of filing of belated return is 30-12-2017.
Note 2: If the return is filed after the above-mentioned period it shall be treated as invalid return.
Consequences of late filing of return
1. The losses mentioned u/s 139(3) is not allowed to be carried forward.
2. Belated return can be revised if furnished as per S 139(1)/(4). But if a return is in pursuance of notice issued u/s 142(1) then it cannot be revised.
3. Liable for payment of interest u/s 234A.
4. Penalty can be levied u/s 271F.

Section 139(5). Revised Return

If any person having furnished a return under section 139(1)/(4) discovers any omission or wrong statement therein, then he may furnish a revised return at any time on or before the expiry of one year from the end of the relevant Assessment Year (AY 2) or before the completion of assessment*, whichever date is earlier. [* Scrutiny assessment or best judgement assessment]
Note 1 : Belated return can be revised if furnished as per S 139(1)/(4). But if a return is in pursuance of notice issued u/s 142(1) then it cannot be revised.
Note 2 : A revised return can further be revised if filed in time allowed. [Dr. N. Srivastava]
Note 3 : A revised return substitutes the earlier return from the date earlier return is filed. [Dhampur Sugar Mills Ltd.]
Note 4 : However a return cannot be revised after passing of assessment order u/s 143(3) or section 144.
Note 5 : The date of completion of assessment is date on which assessment order was passed and not the date
of service of notice of order upon the assessee.
Note 6 : Loss return u/s 139(3) can also be revised since loss return is treated as return as if filed u/s 139(1).

Section 139(9). Defective Return

A return of income shall be regarded as defective unless all the following conditions are fulfilled, namely:
1. Annexure, statements and columns duly filled in.
2. A statement showing the computation of the tax payable.
3. Proof of following is attached (1) TDS - UTN (2) Advance tax - CIN (3) Self assessment tax - CIN
4. Audit report u/s 44AB.
5. where regular books of account are maintained by the assessee, then copies of—
(a) manufacturing account, trading account, profit and loss account or, as the case may be, income and expenditure account or any other similar account and balance sheet;
(b) in the case of a proprietary business or profession, the personal account of the proprietor;
(c) in the case of a firm, association of persons or body of individuals, personal accounts of the partners or members; and
6. Copies of the audited profit and loss account and balance sheet and the auditor’s report
7. Cost audit report under section 233B.
8. where regular books of account are not maintained by the assessee, then a statement indicating the amounts
of turnover, gross receipts, gross profit, net profit debtors, creditors, stock-in-trade and cash balance.
9. If self assessment tax along with interest is not paid before filing of return of income.

Note: Assessing Officer may intimate the defect to the assessee and give him an opportunity to rectify the defect within 15 days from the date of such intimation. He can also extend this time period on an application made by the assessee.
If the assessee does not rectify the defect within the said period then the return shall be treated as void-abinitio.