It is mandatory for every taxpayer to communicate the details of his income to the Income Tax Department. These details are to be furnished in the prescribed form known as return of income. Under section 139(1) of the Act, the following persons shall, on or before the prescribed due date, furnish a return of their income in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed:
|
In the case of |
Has to file the return
of income |
|
an Individual/ HUF/AOP/BOI/Artificial
Juridical Person |
has
to file the return of income if his total income (including income of any
other person in respect of which he is assessable) without giving effect to
the provisions of section 10(38), 10A, 10B, 10BA 54, 54B, 54D, 54EC, 54F,
54G, 54GA, or 54GB or Chapter VIA (i.e., deduction under section 80C to 80U),
exceeds the maximum amount which is not chargeable to tax i.e. exceeds the exemption
limit. |
|
a company |
Every person, being a
company, has to file its return of income compulsorily, irrespective of its
income being profit or loss. In other words, it is mandatory for every
company to file the return of income irrespective of its income or loss. |
|
Partnership
firms (including Limited Liability Partnership) |
has
to file its return of income compulsorily, irrespective of its income being
profit or loss. In other words, it is mandatory for every partnership firm to
file the return of income irrespective of its income or loss. |
|
Charitable or
religious trusts |
Every
person in receipt of income derived from property held under charitable or
religious trusts/legal obligations or in receipt of income being voluntary
contributions referred to in section 2(24)(iia), has to file the return of
income if its total income without giving effect to the provisions of
sections 11 and 12 exceeds the maximum amount not chargeable to income-tax. |
|
Political parties |
The
Chief Executive Officer of every political party has to file the return of
income of the party if the total income of the party without giving effect to
the provisions of section 13A exceeds the maximum amount not chargeable to
income-tax. |
|
Certain associations |
Following
entities are liable to file the return of income if their total income
without giving effect to the provisions of section 10 exceeds the maximum
amount not chargeable to tax: ·
Research association referred to in section 10(21) ·
News agency referred to in section 10(22B) ·
Association or institution referred to in section 10(23A) ·
Person referred to in clause (23AAA) of section 10. ·
Institution referred to in section 10(23B) ·
Fund/institution/trust/university/other educational institution/any
hospital/medical institution referred to in sub-clause (iiiac), (iiiab),
(iiiad), (iiiae), (iv), (v), (vi) or (via) of section 10(23C) ·
Mutual Fund referred to in clause (23D) of section 10 ·
Securitisation trust referred to in clause (23DA) of section 10 ·
Investor Protection Fund referred to in clause (23EC) or clause (23ED) of
section 10. ·
Core Settlement Guarantee Fund referred to in clause (23EE) of section 10 ·
Venture capital company or venture capital fund referred to in clause (23FB)
of section 10; ·
Trade union/association referred to in sub-clause (a) or (b) of section
10(24) ·
Board or Authority referred to in clause (29A) of section 10. ·
Body/authority/Board/Trust/Commission referred to in section 10(46) ·
Infrastructure debt fund referred to in section 10(47) |
|
Certain
university, college or other institution: |
Every
university, college or other institution referred to in clause (ii) and
clause (iii) of section 35(1), which is not required to furnish return of
income or loss under any other provision of the Act, shall furnish the return
of income every year, irrespective of income (or) loss. |
|
Business
Trust |
Every business
trust, which is not required to furnish return of income or loss under any
other provision of the Act, shall furnish the return of income every year,
irrespective of income (or) loss. |
|
Investment
fund referred to in section 115UB |
Every
investment fund referred to in section 115UB, which is not required to
furnish return of income or loss under any other provisions, shall furnish
the return of income in respect of its income or loss every year irrespective
of income (or) loss |
|
Persons
holding assets located outside India: |
A person, being
a resident in India (other than not ordinarily resident), who is not required
to furnish a return under any of the above `and who at any time during the
previous year : (a) holds, as a
beneficial owner (*) or otherwise, any asset (including any financial
interest in any entity) located outside India or has signing authority in any
account located outside India; or (b) is a
beneficiary (*) of any asset (including any financial interest in any entity)
located outside India. |
However, above discussed provision will not apply to an individual, being a beneficiary of any asset (including any financial interest in any entity) located outside India where, income, if any, arising from such asset is includible in the income of the person referred to in (a) above
(*)
"Beneficial owner" in respect of an asset means an individual who has
provided, directly or indirectly, consideration for the asset for the immediate
or future benefit, direct or indirect, of himself or any other person.
(*)
"Beneficiary" in respect of an asset means an individual who derives
benefit from the asset during the previous year and the consideration for such
asset has been provided by any person other than such beneficiary
Furnishing
of income tax return is mandatory for a person referred to in section 139(1)(b)
[7th Proviso to Section 139(1)]
Finance (No. 2) Act, 2019, with effect from
01.04.2020 has inserted seventh proviso to Section 139(1), which laid down
certain criteria for mandatory filing of tax return (ITR) even if Individual’s
income is not exceeding the basic exemption limit. Furnishing of income tax
return is mandatory for a person referred to in clause (b) of section 139(1), who is otherwise not required to furnish a return
under this sub-section (1) of section 139 and who has undertaken the
following high-value transactions during the financial year:
(i) Aggregate of deposits in current
account/accounts exceeding Rs. 1 crore
In case deposited amount
or aggregate of the amounts deposited into one or more current accounts
maintained by the person with banks or co-operative banks is Rs. 1 crore or
more, that person is required to furnish the return under 7th Proviso to
Section 139 (1) of the Income Tax Act, 1961. Deposits in any mode such as cash,
cheque or online transfer, etc are covered.
(ii) Incurred aggregate expenditure in excess of
Rs. 2 lakh for himself or any other person for travel to a foreign country
In case a person incurs
expenditure aggregating to Rs. 2 lakhs and more on foreign tours and travels,
the income tax return needs to be filed under 7th Proviso to Section 139 (1) of
the Income Tax Act, 1961. Expenditure incurred for travelling to a foreign
country can be for your own travel or for any other person.
Explanation 3 to Section
139(1)
As per Explanation 3,
the expression “travel to any foreign country” does not include travel to the
neighbouring countries or to such places of pilgrimage as the Board may specify
in this behalf by notification in the Official Gazette.
(iii) Aggregate of expenditure towards consumption
of electricity exceeding Rs. 1,00,000
In case a person incurs
expenditure aggregating to Rs. 1,00,000 and more towards consumption of
electricity, the income tax return needs to be filed under 7th Proviso to
Section 139 (1) of the Income Tax Act, 1961. However, it covers only the
consumption expenditure where electricity is consumed by the person concerned.
(iv) Fulfils such other conditions as may be
prescribed by the Board
7th Proviso to Section
139 (1) of the Income Tax Act is also applicable for any other high-value
transactions or conditions prescribed by the Central Board of Direct Taxes.
Conditions for Mandatory filing of return of income under section 139(1) [Rule 12AB]
CBDT
has notified the Income-tax (Ninth Amendment) Rules, 2022, vide Income Tax
Notification 37/2022 dated 21.04.2022 to insert new Income Tax Rule 12AB on
conditions for mandatory filing of return of income by persons referred to in
section 139(1)(b), which includes business sale/ turnover/ receipts exceeding
Rs. 60 lacs, professional receipts exceeding Rs. 10 lacs, aggregate TDS/ TCS
exceeding Rs. 25,000 (Rs. 50,000 in the case of a senior/ very senior citizens)
and saving banks deposits exceeding Rs. 50 lacs, during the previous year.
Text of Rule 12AB
12AB.
Conditions for furnishing return of income by persons referred to in clause (b)
of sub-section (1) of section 139.
The
conditions for furnishing return of income in respect of persons referred to in
clause (b) of sub-section (1) of section 139 in terms of clause (iv) of the
seventh proviso to sub-section (1) of section 139 shall be the following,
namely: -
(i) if his total sales, turnover or gross
receipts, as the case may be, in the business exceeds sixty lakh rupees during
the previous year; or
(ii) if his total gross receipts in profession
exceeds ten lakh rupees during the previous year; or
(iii) if the aggregate of tax deducted at source
and tax collected at source during the previous year, in the case of the
person, is twenty-five thousand rupees or more; or
(iv) the deposit in one or more savings bank
account of the person, in aggregate, is rupees fifty lakh or more during the
previous year:
PROVIDED
that in the case of an individual resident in India who is of the age of sixty
years or more, at any time during the relevant previous year, the provision of
clause (iii) shall have effect as if for the words “twenty-five thousand”, the
words "fifty thousand" had been substituted]
Provisions in Brief
: Mandatory
filing of return of income under section 139(1)
|
Section/Rule |
Different situations |
|
|
139(1)(a) |
A company/firm is required to submit its return of income (regardless
of the quantum of income or loss). |
|
|
139(1)(b) |
A person (other than an individual/HUF/AOP/BOI/artificial juridical
person/company/firm) is required to submit his/its return of income, if
income exceeds exemption limit. |
|
|
139(1)(b), read with sixth proviso |
Individual/HUF/AOP/BOI/artificial juridical person is required to
submit his/its return of income, if income [without claiming deduction under
sections 10(38), 10A, 10B, 10BA, 54, 54B, 54D, 54EC, 54F, 54G, 54GA, 54GB,
80C to 80U] exceeds the amount of exemption limit. |
|
|
139(1)(b), read with seventh proviso |
Any person (other than a company or a firm) who is not required to
furnish the return of income under any other provision of section 139(1) and
who during the previous year – |
|
|
(i) |
has
deposited an amount (or aggregate of the amounts) exceeding Rs. 1 crore in
one (or more) current account(s) in a bank/co-operative bank; or |
|
|
(ii) |
has
incurred expenditure of an amount (or aggregate of the amounts) exceeding Rs.
2,00,000 for himself (or any other person) for travel to a foreign country;
or |
|
|
(iii) |
has incurred
expenditure of an amount (or aggregate of the amounts) exceeding Rs. 1,00,000
towards consumption of electricity; or |
|
|
(iv) |
fulfils
such other conditions as may be prescribed by the Central Board of Direct
Taxes |
|
|
Rule 12AB |
CBDT has
notified the Income-tax (Ninth Amendment) Rules, 2022, to insert new Income
Tax Rule 12AB on conditions for mandatory filing of return of income by
persons referred to in section 139(1)(b), which includes : §
Turnover from business
exceeds Rs. 60 Lakh or, §
Receipts from Profession
exceeds Rs. 10 Lakh or, §
Aggregate TDS/TCS is
Rs. 25,000 or more (Rs. 50,000 for senior citizen) or, §
Deposit of more than
Rs. 50 Lakh in savings bank accounts during the previous year |
|
Return
of income had been filed in response to notice under section 148, requirement
under section 12A filing of return of income stood fulfilled
Where
return of income had been filed in response to notice under section 148,
requirement under section 12A filing of return of income stood fulfilled. Since
section 12A nowhere prescribes filing of return by any due date, it could not
be alleged that assessee had not filed its return within prescribed time. Requirement
of filing report of audit in prescribed form is merely procedural and,
therefore, directory in nature and not mandatory for the purpose of claiming
exemption under sections 11 and 12. [In favour of assessee] (Related Assessment
year : 2012-13) – [Genius Education Society v. ACIT,
(Exemptions) Chandigarh (2018) 172 ITD 640 : 98 taxmann.com 54 (ITAT Chandigarh)]
Delhi High Court upholds Trial Magistrate’s order framing prosecution
charges on assessee under section 276CC for non-filing of return before due
date under section 139(1) and failure to comply with notice under section 142(1)
for Assessment year 2003-04 to 2005-06, directs parties to appeal before Trial
Court on October 15th; Citing proviso to Section 276CC, assessee had challenged
the order framing charges on the ground that there was no tax payable for Assessment
year 2004-05 and 2005-06, but rather he was entitied to refund; Noting that Section
276 CC makes failure to furnish returns of income punishable, HC relies on Supreme
Court ruling in Sasi Enterprise Ltd. wherein it was held that proviso cannot
control the main section but only provides some benefit to certain classes of
assessees, remarks that 'The assessment proceedings are not related to these
criminal prosecutions. They may eventually have a bearing for the benefit of
proviso to Section 276CC to be invoked but not so as to inhibit continuation of
the criminal process'; Further regarding Assessment year 2003-04, sets aside
the Revisional Court’s order which accepted assessee's contention that since
notice under section 142 (1) was followed by a fresh notice and in absence of
such notice indicating date by which compliance was to be made, the assessee
could not have been found to be in breach of the statutory obligation; Holds
that the subsequent notice cannot prima facie be read so as to supersede the
previous notice, observes that subsequent filing of return also cannot impact
earlier liability for prosecution on account of failure to furnish return
within stipulated period. [In favour of revenue] (Related Assessment
years : 2003-2004, 2004-2005 and 2005-2006) - [Karan Luthra v. ITO [TS-595-HC-2018(DEL)] – Date of Judgement :
14.09.2018 (Del.)]
Return filing timeline under section 153A applicable for availing loss carry-forward in search cases
Calcutta
High Court rules that in search cases, the due date for filing return, in
order to avail carry forward of loss [as required under section 139(3)], stands
extended till the date specified in notice under section 153A(1)(a); High Court holds
that since the search operations in case of assessee-individual were initiated
on 02.09.2004, it was no longer necessary for assessee to file his regular
return for subject Assessment year 2004-05 by 31.10.2004 [i.e
due-date under section 139(1)]; Rules that in view of the non
obstante clause contained in Section 153A (1), the obligation to file the
return under section 139(1) remained suspended till such time specified in the
notice issued under section 153A(1)(a); High Court concludes that
for the purpose of carrying forward the loss in terms of Section 72 r.w.s. 80,
in a case where search operations have been conducted under section 132,
the time to file the return within the meaning of Section 139(3) has to be
regarded as the reasonable time afforded by the consequent notice under section
153A(1)(a)”; Since the date of notice under section 153A(1)(a) and the
time afforded under such notice was not available on record, High Court remits
matter back to ITAT to pass an order in the light of the views expressed
herein. [In favour of assessee] (Related Assessment
year : 2004-05) - [Shrikant Mohta v. CIT(C) [TS-337-HC-2018(CAL)]
- Date of Judgement : 25.06.2018 (Cal.)]
Mandatory return-filing
before due-date to claim tax-holiday not ‘discriminatory’; Upholds Constitutional
validity
Delhi
High Court dismisses assessee’s (100% EOU) writ for
Assessment year 2007-08, upholds constitutional
validity of Section 80A(5) as well as fourth proviso to Section 10B(1) (the
sections mandate filing of return of income within prescribed due-date under
section 139(1) in order to claim tax holiday under
section 10A/10B); Assessee submitted that the provisions discriminate
between two sets of assessees - one, who file return under section 139(1) but
claim the deduction subsequently by way of revised return under section 139(5),
and another set of taxpayers, who could not file return within due date but
claim the deduction in the original return filed belatedly under section 139(4)
and therefore violative of Article 14 of the Constitution; High Court observes
that the provisions did not curtail any vested rights of taxpayer but it only
imposed an obligation to claim deductions in a timely manner and in the return
so filed; High Court also refers to Supreme Court ruling in State of A.P. v. Nallamilli Ramli Reddi (2001) 7 SCC 708 (SC) to hold that Article 14
permits reasonable classification if it is based on intelligible differentia
and it has reasonable connection with the object sought to be achieved; Noting
that the objective behind insertion of the two provisions was to defeat
multiple claims of deductions and to ensure better tax compliance, High Court
rules that it is open to legislate and prescribe different conditions in
respect of those who claim benefits, just as the substantive provisions which
stipulate the conditions (kind of accounts to be maintained, eligibility
criteria, etc.).”; Also relies on Supreme Court rulings in Kedarnath Jute Manufacturing Co. Ltd. v. Commercial Tax Officer
[AIR 1966 SC 12 (SC) and Union of India and Union of India v. Sanjay Kumar Jain to uphold the validity of
fourth proviso, being merely a qualifying proviso, which seeks to limit the
general provision in Section 10B(1) with a further stipulation or condition. [In
favour of revenue] (Related Assessment year : 2007-08) – [Nath Brothers Exim
International Ltd. v. Union of India [TS-164-HC-2017(DEL)]
– Date of Judgement : 21.04.2017 (Del.)]
Return
of income filed in response to a notice under section 153A is to be treated on
par with a return filed under section 139(1); therefore, charging of interest
under sections 234B and 234C is mandatory
Since
return of income filed in response to a notice under section 153A is to be
treated on par with a return filed under section 139(1), charging of interest
under sections 234B and 234C is mandatory. [In favour of revenue]
(Related Assessment
years : 2008-09 to 2010-11) – [Nandini Delux v. ACIT(C)
[2015] 68
SOT 5 : 54 taxmann.com 162 : 37 ITR(T) 52 (ITAT Bangalore)]
Once e-filed within due
date, furnishing manual ITR-V belatedly not ‘delay';
High Court holds returns
filed electronically within due-date prescribed under section 139(1), valid
returns, in spite of ITR-V filed belatedly; Relies on co-ordinate bench ruling
in Crawford Bayley & Co. v. Union of
India (2011) 16 Taxmann 323 (Bom.); Co-ordinate bench had held that “merely because the ITR - V form was not
sent within the period of 15 days, would not by itself deny a right of the
assessee to claim that the returns have been filed within the time prescribed” –
[CIT v. Borkar Packaging (P) Ltd. [TS-52-HC-2015(BOM)] – Date of Judgement : 13.01.2015 (Bom.)]
No comments:
Post a Comment