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Who has to submit return of income?

Taxpayer

Section under which return to be filed

Minimum income to attract the provisions of filing return of income

Company or firm

139(1)

Any income/loss

Other than a company or firm

139(1)

If income exceeds the exemption limit of Rs.2.5 lacs

(Rs.3 lacs for resident senior citizens, Rs.5 lacs for resident super senior citizens).

In case of Individual/HUF/AOP/BOI/AJP, if total income without giving effect to the provisions of sections 10A, 10B, 10BA, 80C to 80U) exceeds the exemption limit mentioned above.

A person in receipt of income derived from property held under a trust for charitable/religious purposes

139(4A)

If income without giving exemption u/s 11 or 12 exceeds the exemption limit of Rs.2.5 lacs.

Chief Executive Officer of every political party

139(4B)

If income without giving exemption u/s 13A exceeds the exemption limit of Rs.2.5 lacs.

Research association, news agency, association/institution for control/supervision of a profession, institution for development of khadi and village industries, fund/institution referred to in sec 10(23C)(iv)/(v), educational/medical institution, trade union, [from AY 2015-16] mutual fund or securitization trust or venture capital company/fund

139(4C)

If income without giving exemption u/s 10 exceeds the exemption limit of Rs.2.5 lacs.

University/educational institution solely for educational purposes (not for profit purpose) if aggregate annual receipt does not exceed Rs.1 crore

139(4C)(e)

If income without giving exemption u/s 10 exceeds the exemption limit of Rs.2.5 lacs.

Hospital/other institution solely for medical purposes (not for profit purpose) if aggregate annual receipt does not exceed Rs.1 crore

139(4C)(e)

If income without giving exemption u/s 10 exceeds the exemption limit of Rs.2.5 lacs.

Any body or authority or board or trust referred to in section 10(46)

139(4C)(g)

If income without giving exemption u/s 10 exceeds the exemption limit of Rs.2.5 lacs.

Infrastructure debt fund referred to in section 10(47)

139(4C)(h)

If income without giving exemption u/s 10 exceeds the exemption limit of Rs.2.5 lacs.

Any university/college/other institution referred to in section 35(1)(ii)/(iii)

139(4D)

Any income or loss (return has to be furnished even if not required under any other provision).

Any business trust

Any income or loss (return has to be furnished even if not required under any other provision).

In relation to assets located outside India:

if the person is resident (other than RNOR)  and

if the person has any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India

Irrespective of the fact whether the person has taxable income or not.

What form to be used for filing return?

Which form?

For whom?

ITR-1 (Sahaj)

For individuals having

(a) income from salary or

(b) one house property (not being brought forward loss from PYs) or

(c) income from other sources (not being loss and not being winning from lottery or income from horse races).

This form is not applicable in case of:

- a person who has claimed relief u/s 90, 90A or 91

- a person who has income not chargeable to tax of more than Rs.5,000

- ROR individual/HUF who has assets (including financial interest in any entity) located outside India or signing authority in any account located outside India.

ITR-2

For individuals/HUFs not having business/professional income

ITR-3

For individuals/HUFs being partners in firms and not carrying out business/profession under any proprietorship

ITR-4

For individuals/HUFs having income from a proprietary business/profession

ITR-4S (Sugam)

For individuals/HUFs deriving business income and such income is computed in accordance with provisions of section 44AD & 44AE.

This form is not applicable in case of:

- a person who has claimed relief u/s 90, 90A or 91

- a person who has income not chargeable to tax of more than Rs.5,000

- ROR individual/HUF who has assets (including financial interest in any entity) located outside India or signing authority in any account located outside India.

ITR-5

For firm/AOP/BOI/any other person (not being individual/HUF/company to whom ITR-7 is applicable)

ITR-6

For companies other than companies claiming exemption u/s 11

ITR-7

For persons including companies required for furnish return u/s 139(4A) / (4B) / (4C) / (4D)

ITR-V

Where data of return is transmitted electronically without digital signature (explained below)

What is the mode of submission?

Taxpayer

Form

Mode

Digital signature

Remarks

A person who has total income exceeding Rs.5 lacs

ITR-1 / ITR-2 / ITR-3 / ITR-4 / ITR-5

Electronic

Optional

(with/without digital signature)

Person not being a company and person required to furnish return in ITR-7

An ROR individual/HUF

ITR-2 / ITR-3 / ITR-4

Electronic

Optional

ROR individual/HUF having assets (including financial interest in any entity) located outside India or signing authority in any account located outside India

A person claiming relief/deduction u/s 90, 90A & 91

As applicable

Electronic

Optional

ITR-1 or ITR-4S not applicable

A person whose books are required to be audited u/s 44AB

ITR-4 / ITR-5

Electronic

Compulsory

(with digital signature)

Person being firm, LLP, individual or HUF

Any person*

ITR-5

Electronic

Optional

*Person being firm/LLP (whose books are not required to be audited u/s 44AB), AOP, BOI, AJP, LA, Co-op society

A company

ITR-6

Electronic

Compulsory

Persons including companies required to furnish return u/s 139(4A)/ (4B)/(4C)/(4D)

ITR-7

Electronic/Paper

(Political party: Electronic only)

Optional

Others

As applicable

Electronic/Paper

Optional

What is ITR-V?

1. ITR-V is the verification of return in paper format.

2. If the return is submitted electronically without digital signature, then the taxpayer, after submission of return, will have to submit ITR-V (duly signed) within 120 days from the date of uploading electronic return by ordinary/speed post to Income Tax Department - CPC, Post Box No.1, Electronic City PO, Bengaluru – 560100, Karnataka.

3. If ITR-V is furnished within the specified period, the date of uploading of return shall be considered as the date of furnishing of return.

4. If the return is uploaded without digital signature and ITR-V has not been furnished within the specified period, it will be deemed that the assessee has not submitted return of income.  In such case, the assessee will have to re-submit the return.

5. If return is uploaded with digital signature, there is no need to furnish ITR-V in paper format. In this case, date of uploading of return shall be considered as the date of furnishing of return.

What is the due date for filing return of income u/s 139(1)?

Situation

Due date

Assessee is required to furnish a report u/s 92E (pertaining to international/specified domestic transaction)

Nov 30

Assessee is a company (not having international/specified domestic transactions)

Sep 30

Assessee who is a person other than a company (not having international/specified domestic transactions)

a. Where accounts are required to be audited under any law

b. Where the assessee is a working partner in a firm whose accounts are required to be audited under any law

c. In any other case

Sep 30

Sep 30

Jul 31

Return of Loss – Section 139(3)

Return of loss can also be filed within the time limit (as mentioned above) in the forms (prescribed above). If the return of loss is not submitted with the due date, the following losses cannot be carried forward:

i. Business loss (speculative or otherwise)

ii. Capital loss

iii. Loss from activity of owning and maintaining race horses.

However, the delay in submitting the return of loss may be condoned if a few conditions are satisfied – Circular No.8/2001 dated May 16, 2001.

Belated Return – Section 139(4)

If the return is not furnished within the time allowed u/s 139(1) or within the time allowed under notice issued u/s 142(1), the person may (before the assessment is made), furnish the return of any PY at any time before the end of 1 year from the end of relevant AY.

Illustration 1:

An assessee is supposed to file return for AY 2014-15 by Sep 30, 2014. If such return is submitted after Sep 30, 2014, it is said to be a belated return. Such belated return may be submitted within 1 year from the end of AY (i.e. up to March 31, 2016). If however, assessment is completed before March 31, 2016, then such belated return should be submitted before completion of assessment.

If a return is filed after completion of assessment but before service of demand notice, such return is not a valid return.

Illustration 2:

The best judgment assessment is made on Feb 11, 2014 for the assessee’s failure to file return for AY 2012-13 despite notice u/s 142. But before the assessment order is served on Feb 23, 2014, the assessee files a return on Feb 15, 2014. It is not a valid return.

Why is notice given u/s 142(1)?

For the purpose of making assessment, the Assessing Officer (AO) may serve on any person a notice u/s 142(1), for the following purposes:

1. If the assessee has not submitted return of income within the time limit specified u/s 139(1) or before the end of the relevant AY, AO may require her/him to submit the return on/before the date specified in the notice. The notice can be served during the AY or even after the end of the AY.

2. AO may ask the assessee to produce (or cause to be produced) such documents/accounts as s/he may require but not pertaining to a period more than 3 years prior to the PY.

3. AO may require the assessee to furnish in writing information as s/he may require. However, previous approval of Joint Commissioner shall be obtained before requiring the assessee to furnish a statement of all assets and liabilities not included in the accounts.

Consequences of submission of return after due date

1. The assessee will be liable for penal interest u/s 234A.

2. A penalty of Rs.5000 may be imposed u/s 271F if belated return is submitted after the end of AY.

3. If return of loss is submitted after the due date, losses (mentioned above) cannot be carried forward.

4. If the return is submitted after due date, deductions u/s 10A, 10B, 80IA, 80IAB, 80IB, 80IC, 80ID and 80IE will not be available.

Revised Return – Section 139(5)

A person may revise return of income if the following condition(s) are satisfied:

1. If return is furnished u/s 139(1) or in pursuance of a notice u/s 142(1). A belated return filed u/s 139(4) cannot be revised.

2. If the assessee discovers any omission or wrong statement (bona fide) in the return originally filed. If the person has initially filed a return, knowing it to be false, then such return cannot be revised. Where omission or wrong statement in original return is discovered by the IT department as a result of enquiry and thereafter a revised return is furnished making amendment, such return would not amount to revised return u/s 139(5).

3. Revised return can be filed at any time before expiry of 1 year from the end of the relevant AY or before the assessment is complete, whichever is earlier.

Defective or Incomplete return – Section 139(9)

1. If the Assessing Officer (AO) considers that the return submitted by the taxpayer is defective/incomplete, he may give the assessee an opportunity to rectify the defect within a period of 15 days from the date of such intimation. The time limit may be extended on an application by the assessee.

2. If the defect is not rectified by the assessee within the time limit (or extended time limit), AO shall treat the return as invalid and the assessee would be treated as if s/he has not filed the return.

3. If the assessee rectifies the defect after the specified time limit (or extended time limit) but before the assessment, the AO may condone the delay and treat the return as a valid return.

When is a return defective?

1. Return form has not been duly filled:

a. If any schedule in the relevant form is not applicable it should be scored across as NA

b. If any item is inapplicable, NA should be mentioned

c. NIL should be mentioned to denote nil figure

d. No column/row should be left blank

2. Return without self-assessment tax (effective from June 1, 2013):

Return shall be regarded as defective unless tax together with interest payable, if any, has been paid on/before the date of furnishing of the return

Return without annexure/statement/report/account etc

a. This is however, irrelevant now a days, as no certificates/reports etc can be attached to the return forms

b. The assessee should retain these documents and furnish to the AO if/when required for examination.

Who is Tax Return Preparer (TRP)?

Any specified class/classes of persons may furnish return through an authorised TRP. TRP shall assist the persons furnishing the return in the manner specified and TRP shall also affix his/her signature on such return. TRP may be an individual (other than a person referred to in sec 288(2)(ii)/(iii) or an employee of the specified class/classes of persons), who has been authorised to act as a TRP.

Who should verify the return of income?

Assessee

Who should verify?

Individual

- By the individual him(her)self or

-  By some other person duly authorised by the individual, holding a valid power of attorney (if the individual is absent from India) or

- By individual’s guardian or a person competent to act on his/her behalf (if the individual is mentally incapacitated from attending to affairs) or

- By any person authorized by the individual (for any other reason, if it is not possible for individual to verify the return)

HUF

- By karta or

- By any other adult member of the family (if the karta is absent from India or is mentally incapacitated)

Company

- By the managing director or

- By any other director (if MD is not able to verify due to unavoidable reason or where there is no MD)

- In case of non-resident company, return shall be verified by a person holding a valid power of attorney

- Where the company is wound up, the liquidator shall verify the return

- Where the management of company has been taken over by Central/State Govt, the principal officer shall verify the return

Firm

- By the managing partner or

- By any other partner not being minor (if the managing partner is unable to verify due to unavoidable reason or where there is no managing partner)

LLP

- By the designated partner or

- By any other partner (if the designated partner is unable to verify due to unavoidable reason or where there is no designated partner)

Local authority

- By the principal officer

Political party

- By the chief executive officer of such party

Any other association

- By any member of the association or

- By the principal officer

Any other person

- By that person or

- By any other competent person on his/her behalf


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Category Income Tax, Other Articles by - CMA Poornima Madhava 



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