234F penalty
Hanna George (13 Points)
12 November 2018Hanna George (13 Points)
12 November 2018
Mohd
(Manager)
(27 Points)
Replied 12 November 2018
ajay
(Student)
(178 Points)
Replied 12 November 2018
RAJA P M
("Do the Right Thing...!!!")
(126699 Points)
Replied 12 November 2018
Nivedita
(SME - Finance)
(758 Points)
Replied 12 November 2018
Yeah .. Correct
Sec 234F - Without prejudice to the provisions of this Act, where a person required to furnish a return of income under section 139 ...
Sec 139 - Explanation 5(3) - If any person .... such a return also considered as if it were a return under sub-section (1).
rama krishnan
(12234 Points)
Replied 12 November 2018
RAJA P M
("Do the Right Thing...!!!")
(126699 Points)
Replied 12 November 2018
Nivedita
(SME - Finance)
(758 Points)
Replied 13 November 2018
@ Rama Krishnana
Noted.
Yeas that is Sec 139(3) instead of Explanation 5(3).
ajay
(Student)
(178 Points)
Replied 13 November 2018
The Main intention behind introduction of 234F is to file the income tax return with in the due date. Section 234F completely based on section 139. As per section 139, total income means total income without giving effect effect to provisions of section 10A/10B/10BA/Chapter VIA Deductions. So as per my opinion one can take losses into A/c for calculation of Total income. So as per Section 139 assessee other than companies and firm has to file return only when the total income before giving effect to above exemptions and deductions exceeds 2,50,000. If assessee failes to file return u/s 139 then 234f applies. Since in this case toatl income is nil and he fails to file return with in due date , he is liable to pay penalty of Rs.1000 as per 234 F.
Hope you guys understood and kindly correct me if i am wrong.
Note: Section 139(3) talks about filing of loss return with in due date in order to carry forward losses to next previous year and not about setting off losses
RAJA P M
("Do the Right Thing...!!!")
(126699 Points)
Replied 13 November 2018
ajay
(Student)
(178 Points)
Replied 13 November 2018
As per Section 234F read with 139 total income means income before giving effect to provisions of section 10 and chapter VIA. In the proviso no where mentioned about section 79 & 80. Hence in the total income calculation one take into account current year and previous year losses.
Normal GTI Format:
Income from salaries XXXXXXXX
Income from HP XXXXXXXX
PGBP Income XXXXXXXX
CG Income XXXXXXXX
Other Sources XXXXXXXX
Total Income XXXXXXXX
C/Y and B/F loss (XXXXXXXX)
GTI XXXXXXXX
VIA Deductions (XXXXXXXX)
Taxable Income XXXXXXXX
For 139 Limit the calculation will be:
Taxable Income XXXXXXXXX
Add: VIA Deductions XXXXXXXXXX
Add: 10A/10B/10BA XXXXXXXXXX
Total Income for Section 139 XXXXXXXXXX
Hope this will be give clarity.
RAJA P M
("Do the Right Thing...!!!")
(126699 Points)
Replied 13 November 2018
ajay
(Student)
(178 Points)
Replied 13 November 2018
Agreed with you Bro But i want clairty over the definition of total income as per income tax act. Kindly tell me the exact wordings and section of total income as per income tax act. Hope i will get clarity from you about this section.
ajay
(Student)
(178 Points)
Replied 13 November 2018
@ RAJA PM Kindly check ITR also for the for the definition of total income. It seems to me that we both understood provision in a wrong way. As per section 234F total income means taxable income only i.e. even deductions and losses also has to be taken into account. Depends on total income 234F will be levied.