INCOME TAX RETURNS – RELEVANT PROVISIONS & PROCEDURES

Since the due dates for filing income tax return for financial year 2013-14 relevant to assessment year 2014-15 are approaching, some important points and features are analysed below for immediate perusal and ready reference for readers. CBDT has also clarified procedures and provisions by publishing FAQs

FILING OF RETURN- WHETHER MANDATORY?

·         It is mandatory for a company and a firm/ LLP to file its return of income. However, for individual or HUF it is mandatory to file return of income if the total annual income exceeds maximum exemption limit i.e. Rs 2,00,000 for an individual or HUF, Rs 2,50,000 for senior citizen between 60 years and 80 years and Rs 5,00,000 in respect of residents who are 80 years and above.

·         However, if an individual who is resident of India and has an account in foreign bank or owns foreign asset, then it is mandatory for him to file return, irrespective whether he has taxable income or not.

MODES OF FILING RETURN OF INCOME

•  Return of income can be filed in paper mode or e-filing mode
• ·E-filing of return is mandatory for:

 a) Every company;

 b) Every AOP or BOI

 c) A firm or an individual or HUF who are required to get their accounts audited under section  44 AB

 d) Every person claiming tax relief under Section 90, 90A or section 91;

 e) Every resident individual and HUF, if he/it has signing authority in any account located abroad or own any assets located aboard

• For filing return electronically one can visit https://incometaxindiaefi ling.gov.in

CONSEQUENCES OF FILING BELATED RETURN

• ·   If return is filed after end of the relevant assessment year, in that case penalty of Rs 5,000 can be levied u/s 271(F) of the Income Tax Act.
• ·    If return of income is not fi led within due date specifi ed u/s 139(1), loss incurred during the year, under the heads ‘Profi ts and gains of business and professions’ and ‘Capital gains’ cannot be carried forward to next year.
• ·    If tax is payable as per Return of Income, then interest under section 234A @ 1 per cent per month is chargeable.

REVISION OF RETURN

A return filed within due date can be revised subsequently. However, same should be revised within one year from the end of the relevant assessment year or before completion of assessment, whichever is earlier.

PAPERLESS RETURNS

• These days income tax returns are annexures less. Hence, there is no need to enclose any documents along with return of income.
• Documents like balance sheet, profi t & loss account, capital gain, etc. are also not to be attached along with return of income but the same should be prepared and retained on the date of fi ling the return.

CONSEQUENCES IF RETURN IS FILED WITHOUT PAYMENT OF SELF ASSESSMENT TAX

Any return filed without payment of self assessment tax would be treated as defective return u/s 139(9) of the Act and the Assessing Officer can direct the assessee to remove defects within 15 days, failing which return may be treated as invalid.

CAN INCOME TAX RETURN FILED VOLUNTARILY?

Yes, the assessee can file Return of Income voluntarily even if his income is less than the maximum exemption limit. At the same time, it not mandatory to fi le Return of Income simply because assessees have been allotted PAN.

Jayesh Dadia

B Com (Hons.), FCA