Final Tax Presentation

8/8/2019 Final Tax Presentation

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The word assessment used in more comprehensive

sense i.e. including the whole procedure for

imposing liability, upon the tax payer. The

method for assessment of tax can be divided intothree steps:

a) Computation of tax payable income

b) Computation of tax payable on such taxable

incomec) Serving of notice of demand in prescribed form


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The act makes it the obligation of each and every

person to submit particulars of the income relating

to a particular accounting period to Income tax

Officer of his area in prescribed form.This prescribed form is known as

Return of Income and its filing is first step toward

assessment procedure.


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TAX PAYER MINIMUM INCOME TO ATTRACT THE

PROVISION OF FILING OF RETURN OF

INCOME

Company or firm [sec 139(1)] Any income or loss

A person other than a company or firm [sec

139(1)]

Compulsory return if taxable income ( plus

deductions under sections 10A , 10B, 10BA

and sections 80C to 80U ) exceed the

exemption limit

An individual or HUF[sec 139(1)] If gross total income (total income before

allowing deductions u/s 80C to 80U of an

individual or HUF without giving effect to

exemption u/s 10A of tax free zones or u/s

10B under 100% EOU or 10BA for export

of certain goods, exceeds the exempted

limit


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For companyassesses By 30th day of September

oftheassessmentyear

For all non corporate persons

whose accounts are subject to audit

and working partners of a firm

whose accounts are to subject to

audit

By 30th day of September of the

assessment year

For all other persons By 31st day of July of the assessment

year


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New ITR

forms

Subject

ITR - 1 For an individual having income from salary , One house property

and income from other sources

ITR- 2 For Individuals and HUFs having income from any source except

from

business or profession

ITR-3 for Individuals and HUFs being partners in Firms and not having

Proprietary business or profession

ITR-4 for Individuals and HUFs having Proprietary business or profession

ITR-5 For firms, AOPs and BOIs

ITR-6 For companies other than companies claiming exemption under sec

11

ITR-7 For persons including companies required to furnish return under sec

139(4A)/(4B)/(4C)/(4D)


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ITR-8 Return for Fringe Benefits

ITR-V Return of Income/Fringe Benefits in forms ITR-1,ITR-2,ITR-3,ITR-

4,ITR-5,ITR-6,ITR-7 and ITR-8 transmitted electronically without

digital signatures


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The return of loss should be filed in the prescribed

form and within time allowed u/s sec 139(1) and

sec 139(3). The following losses cannot be carried

forward if the return of loss is not submitted intime-

a. Business loss(speculative or otherwise)

b. Capital loss

c. Loss from activity of owning and maintaining racehorses


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1. Belated Return: [Section 139(4)]: This is applicable toany person who has not furnished his return ofincome within the time allowed u/s 139(1) or inresponse to a notice issued u/s 142(1)

2. Time limit: The belated return can be filed eitherbefore:(a) The expiry of one year from the end of therelevant Assessment Year, or(b) Completion of assessment, whichever is earlier.

3. Invalid Return: Return of income flied after belatedperiod will be treated as invalid.


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1. Conditions:

(a) There should be an omission or wrong statementIn the original return Filed.

(b) The original return should have been filed withinthe due date u/s 139(1) or within the time limitspecified in the notice issued u/s 142(1).

2. Time limit: The revised return shall be filed before

(a) The expiry of one year from the end of the

relevant Assessment Year, or(b) Completion of assessment whichever is earlier.


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A return is said to be defective unless all the conditions are fulfilled

(1)All annexures, statements, columns of returns of income

regarding computation of income under all heads are dully filed in;

(2)Return is accompanied by statement showing computation of tax

(3)Return is accompanied by audit report as required u/s 44 AB.

(4)Return is accompanied to proof of payment of tax, TDS and

advance tax. In case return is not accompanied by proof of payment

of tax it shall not be considered defective if


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(a)Certificate of TDS has not been furnished u/s 203,

(b) Certificate of TDS is produced within a period of two years as

specified u/s 155(14) [rectification of mistake]

(5)Return is accompanied by manufacturing account, trading account,

P&L account or income and expenditure account, personal account of

the sole proprietor, and in case of firm, AOP or BOI, personalaccounts of all partners or members.

(6)If audit is compulsory, the auditied P&L A/c Balance sheet and

auditors report must accompany the return.

(7)In case accounts are not maintained, the statement showing

turnovers, gross receipts, gross expenses and net profit and list of

sundry debtors and sundry creditors.


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` In case Assessing Officers finds that the return filed

is defective, he may intimate the defect to the

assessee giving him an opportunity to rectify thedefect within 15 days of such intimation.


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` If the total income of a person exceeds the

maximum exempted limit in any previous years, or

` If the total income of any person in respect of

whom he is responsible, exceeds the maximumexempted limit , or

` If the total sales, turnover or gross receipts are or

is likely to exceed Rs. 5,00,000 in any previous

year if such person is carrying business orprofession, or


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` If any person is required to furnish a return ofincome under section 139 (4A)

` If any person is not covered under any of theabove provisions can apply for PAN.

Every person shall-

` Quote such numbers in all returns to , orcorrespondence with, any income tax authority

` In all challans for the payment of any sum dueunder this act


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` In all document pertaining to such transactions

as may be prescribed by the board in the

interest of the revenue :

Quote General Index Register Number till suchtime

` To intimate the assessing officer any change in

his address or in his name and nature of his

business on the basis of which the PAN wasallotted to him


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1. Self assessment(sec 140A)

2. Enquiry before assessment[sec142(1)]

3. Assessment on the basis of return of filed

4. Best judgement assessment


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Self assessment-E

very assessee liable to pay tax or fringe benefit tax isrequired to submit his return .These are the following

points-

The amount of tax ,if any, already paid under provision

of this act.Any tax deducted or collected at source.

Any relief of tax or deduction of tax claimed u/s 90or 91

on account of tax paid in a country outside India.


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Any relief tax claimed u/s 90 in account of tax paid in

any specificied territory outside India.

Any tax credit claimed to be set off in accordance with

the provision of sec 115AA.


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Enquiry before assessment-

where such person has, within the time allowed u/s 139(1) or

before the end of relevant assessment year failed, to furnish areturn of his income or income of any other person in espect of

which he is assessed under this act.

To produce or cause to be produced such books, accounts or

documents as the assessing officer may require.To furnish in writing and verified in the prescribed manner

information in such form .

The assessing officer shall not required production of any

book of accounts relating to a period more than 3 years to theprevious year


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Assessment on the basis of return filed-

1.When a return has been filed[ sec(14)(a)]

If ay tax or interest is found due on the basis of such return

after adjustment of any advance tax paid on self assessment

and any amount paid.

If any refund is due on the basis of such return, it shall be

granted to the assessee and an intimation to this effect shall be

set to the assessee.


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Assessment on the basis of enquiry[sec 143(2)

&143 (3)]

In scrutiny assessment the AO calls the assessee to furnish

the explanations and books of accounts. For undertaking the

scrutiny assessment the AO has to issue a notice to the

assessee under section 143(2).

If Assessee produces the information and explanations

required by the Assessing Officer (AO) the AO completes the

assessment and determine the Taxable income and income tax

liability on thebasis of the information and explanations

produced before him.


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Adjustment of tax on regular assessment[sec143(4)]

Any tax or interest paid by assessee shall be deemed

to have been paid towards such regular assessment.In case any excessive amount has been refunded but

amount refundable on regular assessment is less, the

excess amount of refund shall be deemed to be tax

payable by assessee


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Best Judgement assessment-

The Best judgment Assessment can be made by an AO under

the following cases: -

1. Assessee does not file his regular return of income u/s 139.

2. Assessee does not comply with instructions u/s 142 (1),

i.e., notice requiring to file his return of income or 142 (2A),

i.e., notice requiring assessee to conduct audit of hisaccounts.

3. Assessee does not comply with instructions u/s 143(2), i.e.,

notice of scrutiny assessment.

4. AO is not satisfied regarding completeness of accounts.

Final Tax Presentation

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