Filing of Return sec. 139(1)

DR. N. K. GUPTA

MeaningEvery assessee is supposed to file the

return if earning taxable income or in case of business profession & capital gains

suffering loss or claims exemption under sec. 10A, 10B, etc… or claims deduction

from 80 c to 80 u.

Due dates for filing of Return• Where the assessee is

1) a company or

2) a person (other than a company) whose accounts are required to be audited under this act or any other law –30thseptember for A.Y 2009-10

• In any other case - 31st July

Return can be filed in 2 ways

• Manually

• Through internet

Prescribed forms of Return of Income

e-Filing of Returns

An Overview of the Process

of e-Filing of Returns

What is e-Filing

• The process of electronically filing Income tax returns through the internet is known as e-Filing.

• It is mandatory for Companies and Firms requiring statutory audit u/s 44AB to submit the Income tax returns electronically for AY 2008-09.– Any Company/Firm requiring statutory audit

u/s 44AB return submitted without a e-Filing receipt will not be accepted.

• e-filing is possible with or without digital signature.

Types of e-Filing … AY 2008-09

• There are three ways to file returns electronically• Option 1: Use digital signature in which case no

paper return is required to be submitted• Option 2: File without digital signature in which

case ITR-V form is to filed with the department. This is a single page receipt cum verification form.

• Option 3: File through an e-return intermediary who would do e-Filing and also assist the Assessee file the ITR V Form .

New IT Returns – Annexure-less FormsFor Individuals, HUF

Select appropriate Income Tax Return (ITR) Preparation Software

ITR-1 ITR-2 ITR-3 ITR-4

Individual Individual Individual Individual

& HUF & HUF & HUF

1 Income from Salary/Pension ▪ ▪ ▪ ▪

2 Income from Other Sources (only Interest income or Family Pension)

▪ ▪ ▪ ▪

3 Income/Loss from Other Sources▪ ▪ ▪

4 Income/Loss from House Property ▪ ▪ ▪

5 Capital Gains/Loss on sale of investments/property ▪ ▪ ▪

6 Partner in a partnership Firm ▪ ▪

7 Income from Proprietary Business/Profession ▪

New IT Returns – Annexure-less Forms

For Association of Persons (AoP), Body of Individuals (BoI), Local Authority, Companies, Trusts, Fringe Benefit Tax (FBT) Return

Select appropriate Income Tax Return (ITR) Preparation Software

ITR-5 ITR-6 ITR-7 ITR-8

Firms, AoP, BoI, LA

Companies Trusts Only FBT

1 Income/Loss from Other Sources

▪ ▪ ▪

2 Income/Loss from House Property ▪ ▪ ▪

3 Capital Gains/Loss on sale of investments/property ▪ ▪ ▪

4 Income/Loss from Business▪ ▪ ▪

5 Fringe Benefit Tax▪ ▪ ▪ ▪

ITR-7 will not be available for e-Filing

e-Filing Process – At a glance

• Select appropriate type of Return Form • Download Return Preparation Software for

selected Return Form. • Fill your return offline and generate a XML file. • Register and create a user id/password • Login and click on relevant form on left panel

and select "Submit Return" • Browse to select XML file and click on "Upload"

button • On successful upload acknowledgement details

would be displayed. Click on "Print" to generate printout of acknowledgement/ITR-V Form.

e-Filing Process – At a glance

• Incase the return is digitally signed, on generation of "Acknowledgement" the Return Filing process gets completed. You may take a printout of the Acknowledgement for your record.

• Incase the return is not digitally signed, on successful uploading of e-Return, the ITR-V Form would be generated which needs to be printed by the tax payers. This is an acknowledgement cum verification form. The tax payer has to fill-up the verification part and verify the same. A duly verified ITR-V form should be submitted with the local Income Tax Office within 15 days of filing electronically. This completes the Return filing process for non-digitally signed Returns.

Sec139 (IA)

• An employee may furnish the return through his employer also, if he is not having income from any other source other then salary

Sec139 (IB)

• Return can be filed through TRP’s (Tax Return Preparer ); they are people authorised & trained by Income Tax Department

RETURN OF INCOME

VOLUNTARY RETURN OF INCOME

1. Return by an individual, HUF, AOP, BOI or an Artificial juridical person. Sec. 139

2. Return by a company or a firm

3. Return on behalf of a charitable trust etc. Sec.139 (4A).

4. Return on behalf of a Political Party Sec.139 (4B).

5. Return by other persons Sec.139(4C) Scientific Research Association Sec.10(21).

News Agency Sec.10(22B).

Association or Institution Sec.10(23A).

Trade Unions Sec.10(24).

6. Return Of Loss Sec.139(3)

7. Belated return Sec.139(4)

8. Revised Return Sec.139(5)

9. Compulsory Return Sec.141(1)

10. Defective Return Sec.139(9)

Belated Return 139(4)

• If an assessee hasn’t filed the return within the due date; assessee is allowed to file the return before the end of 1 year from the end of the A.Y to which the Return relates

• Benefit is not allowed to assessee if AO i.e. Assessing Officer starts the process of assessment.

Revised Return of Income Sec 139(5)

• If assessee discovers any omission or mistake in the return he may furnish a Revised Return before the end of the 1 year from the end of the A.Y to which the return relates.

COMPULSORY RETURN SECTION 141(1)(i)

• Where any person is assessable either in respect of his income or income of any other person and he has not furnish the return of income on or before the due date of furnishing the return u/s 139(1) the A.O may serve a notice on such person requiring him to furnish the return. Such return should be furnished within the time allowed in the notice.

• Such person remain liable to pay interest u/s 234A for late furnishing of return from the due date.

Defective Return Sec139(9)

• When the A.O. considers that the return of income furnished by the assessee is defective, he may intimate the defect to the assessee and give him an opportunity to rectify the defect within a period of 15 days from the date of such intimation.

• On an application by the assessee the A.O. may extend the period of 15 days. If the defect is not rectified within the set period of 15 days or further period allowed by the A.O , then the return shall be treated as invalid and will be deemed as if the assessee had failed to furnish the return.

EXPLANATION REGARDING DEFECTIVE RETURN

The return shall be regarded as defective if any of the following conditions is not fulfilled:-

1. The annexures, statements and columns in the return of income relating to the computation of income chargeable under each head of income.

2. The return is accompanied by a statement showing the computation of the tax payable on the basis of the return;

the return is accompanied by the audit report obtained u/s. 44AB.

3. The return is accompanied by proof of (i) the TDS (ii) tax paid on self assessment.

4. Where regular books of account are maintained by the assessee, the return is accompanied by copies of accounts like P/L A/c and balance sheet.

Signatory of return Sec140• Individual- himself or by his Attorney if

1)the person is not in India

2)incapable of mentally retardness etc.• HUF- Karta or if Karta is not in India then by his attorney• Partnership Firm- Managing partner or any partner

except minor• Companies – Managing Director or in his absence by

any Director• Non Resident Companies –Valid Attorney

cont………..

Cont………………….

• Liquidation of companies – Official liquidator• Company taken over by government-

Principal Officer• Political Parties – CEO of the party

Liability of Non Filing of Return

• Interest will be paid @ 1 %per month or part of the monthfor unpaid tax; if no unpaid tax then Rs. 5,000 whichever is higher

Thank you

sirnkgupta@yahoo.com