Return of Income
1. Sec. 139(1), Voluntary Return :
Every person being a company or being a person other than a company, If his total income during the previous year, exceeds the maximum amount which is not chargeable to tax, is required to furnish a return of his income voluntarily.
Proviso 1 to section 139(1) makes filing of return obligatory even if taxable income is lower than exemption limit under “ 1 by 6 criteria”
FORMS FOR RETURN : (Rule 12)
ITR 1 : Applicable to individual, having income from salary or interest or both, but no othe incomes
ITR 2 : Applicable to individual and HUF, having income from any source, except income from own business.
ITR 3 : Applicable to individual and HUF, but following conditions must be satisfied-
(i) Assessee must be partner in firm
(ii) Assessee must have received remuneration.
(iii) Assessee does not have income from own business.
ITR 4 : Applicable to individual and HUF, having income from own business or profession.
ITR 5 : Applicable to partnership firm, AOP and BOI, having income from any source.
ITR 6 : Applicable to company having income from any source.
ITR 7 : Applicable to those assessees which are covered under section 139(4A),139(4B),139(4C), 139(4D).
TIME LIMIT FOR FURNISHING RETURN OF INCOME :
The return of income must be filed in a prescribed form and verified in the prescribed manner, on or before the due date mentioned u/s 139(1)
2. Sec. 139(3) Loss Return :
Set off and carry forward of losses are not permitted unless the return of loss is submitted on or before the due date u/s 139(1). It is mandatory for a company to file a return even if the total income is Nil or negative.
Important :
The above mentioned stipulation does not cover unabsorbed depreciation carried forward u/s 32(2) and loss under the head “Income from House Property”.
3. Sec. 139(4) Belated Return :
If an assessee has not submitted his return of income on or before due date mentioned u/s 139(1) or within the time allowed under the notice issued by the Assessing Officer u/s 142(1) he can still file the return of income. Such a return is called belated/late return. Belated return can be filed at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment u/s 144 whichever is earlier.
Provisions regarding interest u/s 234(A)
If assessee has furnished belated return of income with the amount of tax, then assessee is liable to pay interest under section 234(A) @ 1% per month or part of the month for the delayed period.
Example :
For a company assessee the last date for filing the return of income for previous year 2008-09 is 30th Setember, 09 but a late return may be filed at any time on or before 31st March, 2010 or before the assessment is completed whichever is earlier. If the return of income is not filed u/s 139(1) the Assessing Officer can issue a notice u/s 142(1) requiring the assessee to file the return of income within the time specified by him.
4. Sec. 139(4A) Return of income of charitable trust and institutions :
Every person who is in recipt of income from the property held under trust for charitable and religious pruposes and from voluntary contribution and if such income is more than the tax exemption limit he is required to submit the return of income in the prescribed form.
Important :
Trust whose income does not exceed Rs. 50,000 audit requirement does not arise hence return will have to be filed on or before 31st July. However if the income exceeds 50,000 or if business turnover exceeds Rs. 40,00,000 audit requirement arises, hence the due date shall be 31st October.
5. Sec. 139(4B) Return of income of Political party :
The chief executive officer of every political party, shall, if the total income of the political party (computed before allowing exemption u/s 13A) exceeds the maximum amount not chargeable to income tax, furnish a return of such income. It must be submitted within the time period prescribed. In order to avail exemption u/s 13A, the account must be audited. Therefore, due date for filing the return will be 30th September, otherwise 31st July.
6. Sec. 139(4C) The following entities shall furnish their return of income if the total income before giving official to the exemption u/s 10, exceeds the basic exemption limit :
(i) Scientific research association covered u/s 10(21).
(ii) News agency covered u/s 10(22B)
(iii) Association or institution referred to in 10(23A)/(23B)
(iv) Fund or institution, hospital or other medical institution referred in seems 10(23C) (iv)(v)(vi)(via) and
(v) Trade union or association covered u/s 10(24).
7. Sec. 139(4D) Mandatory to file return of income or loss :
Return of income of university and college or other institution is mandatory u/s 139(4D). Such assessee will always be required to furnish return under this section, irrespective of size of income or loss with in the time limit of section 139(1). Return will be furnished in ITR 7.
8. Sec. 139(5) Revised Return :
If an assessee, after furnishing the return of income u/s 139(1) or in response to a notice u/s 142(1), discovers :
any omission, or wrong statement in the return filed, he may furnish a revised return. Such a revised return can be filed at any time before the expiry of one year from the end of relevant assessment year or before the completion of the assessment whichever is earlier.
For example :
If a return of income is filed by the assessee for the assessment year 2009-2010 on 15-09-09 and he afterward discover some mistake, he can file a revised return at any time upto 31st March, 2011 or before the completion of the assessment, whichever is earlier.
Can a belated return u/s 139(4) be revised :
No, there was a difference of opinion, among various courts regarding filing of revised return in respect of belated return. However in recent case of Supreme Court, it has been held that a belated return can not be revised (Kumar Jagdish Chandra Sinha vs. CIT (1996)].
Can revised return be further revised :
Yes, provided it is revised within the same prescribed time.
For Example :
If return of income for A.Y. 2008-09 is filed on 15.09.08 and is revised on 15.4.09 (before the assessment is completed), such revised return can still be revised at any time upto 31st March, 2010 or before the completion of the assessment which ever is earlier.
9. Sec. 139(9) Defective Return :
Not relevant now, as the assessee has to furnish annexure less return of income of assessment year 2007-08 and onwards.
10. Sec. 139A Permanent Account Number (PAN) Rule 114 :
1. In following cases every person has to apply in form no. 49A to the assessing officer for the allotment of a Permanent Account Number :
(a) If his total income in the previous year exceeds the maximum amount which is not chargeable to tax; or
(b) If his carrying on any business or profession whose total sales, turnover or gross receipts are or is likely to exceed Rs. 5.00 lacs in previous year; or
(c) He is required to furnish a return of income u/s 139(4A), i.e., return of trust and charitable institutions.
2. The assessing officer may also allot Permanent Account Number to any other person by whom tax is payable.
3. Any person not falling under 1 and 2 above may also apply for PAN.
According to Rule 114B of the Income-tax Rules, all documents pertaining to the transactions in relation to which Permanent Account Number or General Index Register Number to be quoted as required under section 139A are as follows :
i) Sale or purchase of any immovable property valued at Rs. 5 lakhs or more;
ii) Sale or purchase of motor vehicle or vehicle, as defined sec.2(28) of the Motor Vehicle Act, 1988 (other than a two-wheeled motor vehicle, whether having any detachable side car having extra wheel attached to such two-wheeled motor vehicle car or not);
iii) A Time deposit with a banking company exceeding Rs. 50,000;
iv) A Time deposit, exceeding Rs. 50,000 in any account with Post Office Savings Bank;
v) Any contract for sale or purchase of securities of a value of exceeding Rs. 1 lakh;
vi) Opening an account with a banking company;
vii) Making an application for installation of a telephone connection including a cellular phone connection;
viii) Payments to hotels and restaurants against their bills for an amount exceeding Rs. 25,000 at any one time.
ix) Cash payment for purchase of bank drafts or pay orders or bankers cheque from a banking company for an amount aggregating Rs. 50,000 or more during any one day.
x) Cash deposits aggregating Rs. 50,000 or more with a banking company during any one day.
xi) Cash payment exceeding Rs. 25,000 in connection with travel to any foreign country at any one time.
xii) Making an application to banking company to which the Banking Regulation Act, 1949 applies or any other company or institution for issue of credit card.
xiii) Payment of an amount of Rs. 50,000 or more, to-
(a) Mutual Fund for purchase of its units.
(b) A company for acquiring share issued by it.
(c) A company or any institution for acquiring any debentures or bonds issued by it.
(d) The RBI for acquiring bonds issued by it.
Further it is mandatory for every person receiving any sum or income or amount from which tax is deducted at source or collected at source to intimate his Permanent Account Number to the person responsible for deducting or collecting such tax. Similar obligation is cast on every person who is responsible to deduct or collect tax.
11. Sec. 139(D) Filing of return in electronic form:
The board may make rules providing for -
a) The class or classes of persons who shall be required to furnish the return in electronic form.
b) The form and the manner in which the return in electronic form may be furnished.
c) The documents, statements, receipts, certificates or audited report which may not be furnished along with the return in electronic form but shall be produced before the assessing officer on demand.
d) The computer resource or the electronic record to which the return in electronic form may be transmitted.
Every person being a company or being a person other than a company, If his total income during the previous year, exceeds the maximum amount which is not chargeable to tax, is required to furnish a return of his income voluntarily.
Proviso 1 to section 139(1) makes filing of return obligatory even if taxable income is lower than exemption limit under “ 1 by 6 criteria”
FORMS FOR RETURN : (Rule 12)
ITR 1 : Applicable to individual, having income from salary or interest or both, but no othe incomes
ITR 2 : Applicable to individual and HUF, having income from any source, except income from own business.
ITR 3 : Applicable to individual and HUF, but following conditions must be satisfied-
(i) Assessee must be partner in firm
(ii) Assessee must have received remuneration.
(iii) Assessee does not have income from own business.
ITR 4 : Applicable to individual and HUF, having income from own business or profession.
ITR 5 : Applicable to partnership firm, AOP and BOI, having income from any source.
ITR 6 : Applicable to company having income from any source.
ITR 7 : Applicable to those assessees which are covered under section 139(4A),139(4B),139(4C), 139(4D).
TIME LIMIT FOR FURNISHING RETURN OF INCOME :
The return of income must be filed in a prescribed form and verified in the prescribed manner, on or before the due date mentioned u/s 139(1)
2. Sec. 139(3) Loss Return :
Set off and carry forward of losses are not permitted unless the return of loss is submitted on or before the due date u/s 139(1). It is mandatory for a company to file a return even if the total income is Nil or negative.
Important :
The above mentioned stipulation does not cover unabsorbed depreciation carried forward u/s 32(2) and loss under the head “Income from House Property”.
3. Sec. 139(4) Belated Return :
If an assessee has not submitted his return of income on or before due date mentioned u/s 139(1) or within the time allowed under the notice issued by the Assessing Officer u/s 142(1) he can still file the return of income. Such a return is called belated/late return. Belated return can be filed at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment u/s 144 whichever is earlier.
Provisions regarding interest u/s 234(A)
If assessee has furnished belated return of income with the amount of tax, then assessee is liable to pay interest under section 234(A) @ 1% per month or part of the month for the delayed period.
Example :
For a company assessee the last date for filing the return of income for previous year 2008-09 is 30th Setember, 09 but a late return may be filed at any time on or before 31st March, 2010 or before the assessment is completed whichever is earlier. If the return of income is not filed u/s 139(1) the Assessing Officer can issue a notice u/s 142(1) requiring the assessee to file the return of income within the time specified by him.
4. Sec. 139(4A) Return of income of charitable trust and institutions :
Every person who is in recipt of income from the property held under trust for charitable and religious pruposes and from voluntary contribution and if such income is more than the tax exemption limit he is required to submit the return of income in the prescribed form.
Important :
Trust whose income does not exceed Rs. 50,000 audit requirement does not arise hence return will have to be filed on or before 31st July. However if the income exceeds 50,000 or if business turnover exceeds Rs. 40,00,000 audit requirement arises, hence the due date shall be 31st October.
5. Sec. 139(4B) Return of income of Political party :
The chief executive officer of every political party, shall, if the total income of the political party (computed before allowing exemption u/s 13A) exceeds the maximum amount not chargeable to income tax, furnish a return of such income. It must be submitted within the time period prescribed. In order to avail exemption u/s 13A, the account must be audited. Therefore, due date for filing the return will be 30th September, otherwise 31st July.
6. Sec. 139(4C) The following entities shall furnish their return of income if the total income before giving official to the exemption u/s 10, exceeds the basic exemption limit :
(i) Scientific research association covered u/s 10(21).
(ii) News agency covered u/s 10(22B)
(iii) Association or institution referred to in 10(23A)/(23B)
(iv) Fund or institution, hospital or other medical institution referred in seems 10(23C) (iv)(v)(vi)(via) and
(v) Trade union or association covered u/s 10(24).
7. Sec. 139(4D) Mandatory to file return of income or loss :
Return of income of university and college or other institution is mandatory u/s 139(4D). Such assessee will always be required to furnish return under this section, irrespective of size of income or loss with in the time limit of section 139(1). Return will be furnished in ITR 7.
8. Sec. 139(5) Revised Return :
If an assessee, after furnishing the return of income u/s 139(1) or in response to a notice u/s 142(1), discovers :
any omission, or wrong statement in the return filed, he may furnish a revised return. Such a revised return can be filed at any time before the expiry of one year from the end of relevant assessment year or before the completion of the assessment whichever is earlier.
For example :
If a return of income is filed by the assessee for the assessment year 2009-2010 on 15-09-09 and he afterward discover some mistake, he can file a revised return at any time upto 31st March, 2011 or before the completion of the assessment, whichever is earlier.
Can a belated return u/s 139(4) be revised :
No, there was a difference of opinion, among various courts regarding filing of revised return in respect of belated return. However in recent case of Supreme Court, it has been held that a belated return can not be revised (Kumar Jagdish Chandra Sinha vs. CIT (1996)].
Can revised return be further revised :
Yes, provided it is revised within the same prescribed time.
For Example :
If return of income for A.Y. 2008-09 is filed on 15.09.08 and is revised on 15.4.09 (before the assessment is completed), such revised return can still be revised at any time upto 31st March, 2010 or before the completion of the assessment which ever is earlier.
9. Sec. 139(9) Defective Return :
Not relevant now, as the assessee has to furnish annexure less return of income of assessment year 2007-08 and onwards.
10. Sec. 139A Permanent Account Number (PAN) Rule 114 :
1. In following cases every person has to apply in form no. 49A to the assessing officer for the allotment of a Permanent Account Number :
(a) If his total income in the previous year exceeds the maximum amount which is not chargeable to tax; or
(b) If his carrying on any business or profession whose total sales, turnover or gross receipts are or is likely to exceed Rs. 5.00 lacs in previous year; or
(c) He is required to furnish a return of income u/s 139(4A), i.e., return of trust and charitable institutions.
2. The assessing officer may also allot Permanent Account Number to any other person by whom tax is payable.
3. Any person not falling under 1 and 2 above may also apply for PAN.
According to Rule 114B of the Income-tax Rules, all documents pertaining to the transactions in relation to which Permanent Account Number or General Index Register Number to be quoted as required under section 139A are as follows :
i) Sale or purchase of any immovable property valued at Rs. 5 lakhs or more;
ii) Sale or purchase of motor vehicle or vehicle, as defined sec.2(28) of the Motor Vehicle Act, 1988 (other than a two-wheeled motor vehicle, whether having any detachable side car having extra wheel attached to such two-wheeled motor vehicle car or not);
iii) A Time deposit with a banking company exceeding Rs. 50,000;
iv) A Time deposit, exceeding Rs. 50,000 in any account with Post Office Savings Bank;
v) Any contract for sale or purchase of securities of a value of exceeding Rs. 1 lakh;
vi) Opening an account with a banking company;
vii) Making an application for installation of a telephone connection including a cellular phone connection;
viii) Payments to hotels and restaurants against their bills for an amount exceeding Rs. 25,000 at any one time.
ix) Cash payment for purchase of bank drafts or pay orders or bankers cheque from a banking company for an amount aggregating Rs. 50,000 or more during any one day.
x) Cash deposits aggregating Rs. 50,000 or more with a banking company during any one day.
xi) Cash payment exceeding Rs. 25,000 in connection with travel to any foreign country at any one time.
xii) Making an application to banking company to which the Banking Regulation Act, 1949 applies or any other company or institution for issue of credit card.
xiii) Payment of an amount of Rs. 50,000 or more, to-
(a) Mutual Fund for purchase of its units.
(b) A company for acquiring share issued by it.
(c) A company or any institution for acquiring any debentures or bonds issued by it.
(d) The RBI for acquiring bonds issued by it.
Further it is mandatory for every person receiving any sum or income or amount from which tax is deducted at source or collected at source to intimate his Permanent Account Number to the person responsible for deducting or collecting such tax. Similar obligation is cast on every person who is responsible to deduct or collect tax.
11. Sec. 139(D) Filing of return in electronic form:
The board may make rules providing for -
a) The class or classes of persons who shall be required to furnish the return in electronic form.
b) The form and the manner in which the return in electronic form may be furnished.
c) The documents, statements, receipts, certificates or audited report which may not be furnished along with the return in electronic form but shall be produced before the assessing officer on demand.
d) The computer resource or the electronic record to which the return in electronic form may be transmitted.
12. Sec. 140 SIGNING AND VERIFICATION OF RETURN OF INCOME :
Under this section return of income/loss will be verified and signed by the following persons -
i) If assessee is individual then following persons can sign and verify return of income.
(a) Individual himself
(b) If individual is absent from India, then, any authorized person
(c) If individual is mentally incapable, legal guardian of such individual
ii) If assessee is HUF then following persons can sign and verify return of income.
(a) Karta of HUF.
(b) If Karta is absent from India, or mentally incapable then any adult member of family.
iii) If assessee is partnership firm then following persons can sign and verify return of income
(a) Managing partner
(b) If there is no managing partner then any adult partner of the firm
iv) If assessee is company then following persons can sign and verify return of income
(a) Managing Director
(b) If there is no MD then, any of the directors
(c) If company goes into liquidation then liquidator of the company
(d) If management and control of the company is taken over by the Central Govt. or State Govt. then principal officer appointed by Govt.
(e) If company is non-resident then any authorized person by way of power of attorney (agent of such company)
v) If assessee is AOP then principal officer or any member of the AOP
vi) If assessee is political party then ROI will be signed and verified by CEO
vii) If assessee is local body then principal officer appointed by the Govt.
Under this section return of income/loss will be verified and signed by the following persons -
i) If assessee is individual then following persons can sign and verify return of income.
(a) Individual himself
(b) If individual is absent from India, then, any authorized person
(c) If individual is mentally incapable, legal guardian of such individual
ii) If assessee is HUF then following persons can sign and verify return of income.
(a) Karta of HUF.
(b) If Karta is absent from India, or mentally incapable then any adult member of family.
iii) If assessee is partnership firm then following persons can sign and verify return of income
(a) Managing partner
(b) If there is no managing partner then any adult partner of the firm
iv) If assessee is company then following persons can sign and verify return of income
(a) Managing Director
(b) If there is no MD then, any of the directors
(c) If company goes into liquidation then liquidator of the company
(d) If management and control of the company is taken over by the Central Govt. or State Govt. then principal officer appointed by Govt.
(e) If company is non-resident then any authorized person by way of power of attorney (agent of such company)
v) If assessee is AOP then principal officer or any member of the AOP
vi) If assessee is political party then ROI will be signed and verified by CEO
vii) If assessee is local body then principal officer appointed by the Govt.
For more detail :- http://www.gurukpo.com
posted by GuruKPO @ 4:47 AM
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