Who need to file Income Tax Return AY 2021-22

 

PROVISIONS FOR FILING RETURN OF INCOME AND

SELF ASSESSMENT

Topics :

• Who Need of file income tax return?
• Date of Income Tax Return Filling?
• In Case of loss carry forward Date of Retun filling?
• Meaning of Belated Retun 139(4)?
• Due Date of Filling Return of Charitable Trust?
• Revised Return 139(5)
• Belaed Return 139(4)
• Defective Return 139(9)

Section - 139, Income-tax Act, 1961-2020

CHAPTER XIV

PROCEDURE FOR ASSESSMENT

Return of income.

Filing of Return	Interest and fee for default in furnishing return of income	Other Provisions
Compulsory filing of Return of Income [Section 139(1)]	Interest for default in furnishing return of income [Section 234A]	Permanent Account Number [Section 139A]
Return of Loss [Section 139(3)]	Fee for default in furnishing return of income [Section 234F]	Quoting of Aadhar Number [Section 139AA]
Belated Return [Section 139(4)]		Submission of returns through Tax Return Preparers [Section 139B]
Revised Return [Section 139(5)]		Person authorized to verify return of income [Section 140]
Defective Return [Section 139(9)]		Self-Assessment [Section 140A]

COMPULSORY FILING OF RETURN OF INCOME [SECTION 139(1)]

(1) As per section 139(1), it is compulsory for companies and firms to file a return of income or loss for every previous year on or before the due date in the prescribed form. 

(2) In case of a person other than a company or a firm, filing of return of income on or before the due date is mandatory, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeds the basic exemption limit.

(4) Further, every person, being an individual or a HUF or an AOP/BOI, whether incorporated or not, or an artificial juridical person -

 whose total income or the total income of any other person in respect of which he is assessable under this Act during the previous year

 without giving effect to the provisions of Chapter VI-A or section 54/54B/54D/54EC/54F1

 exceeded the basic exemption limit.

is required to file a return of his income or income of such other person on or before the due date in the prescribed form and manner and setting forth the prescribed particulars.

The basic exemption limit is ` 2,50,000 for individuals/HUF/AOPs/BOIs and artificial juridical persons, ` 3,00,000 for resident individuals of the age of 60 years but less than 80 years and ` 5,00,000 for resident individuals of the age of 80 years or more at any time during the previous year. These amounts denote the level of total income, which is arrived at after claiming the admissible deductions under Chapter VI-A and exemption under section 54/54B/54D/54EC or 54F in respect of capital gain.   However, the level of total income to be considered for the purpose of filing return of income is the income before claiming the admissible deductions under Chapter VI-A and exemption under section 54/54B/54D/54EC or 54F.

(5) Any person other than a company or a firm, who is not required to furnish a return under section 139(1), is required to file income-tax return in the prescribed form and manner on or before the due date if, during the previous year, such person –

(a) has deposited an amount or aggregate of the amounts exceeding

` 1 crore in one or more current accounts maintained with a banking company or a co-operative bank; or

(b) has incurred expenditure of an amount or aggregate of the amounts exceeding ` 2 lakh for himself or any other person for travel to a foreign country; or

(c) has incurred expenditure of an amount or aggregate of the amounts exceeding ` 1 lakh towards consumption of electricity; or

(d) fulfils such other prescribed conditions

(3) Every person, being a resident other than not ordinarily resident Resident (other then RNOR) in India within the meaning of section 6(6), who is not required to furnish a return under section 139(1), would be required to file a return of income or loss for the previous year in the prescribed form and verified in the prescribed manner on or before the due date, if such person, 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 a 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, an individual being a beneficiary of any asset (including any financial interest in any entity) located outside India would not be required to file return of income under this clause, where, income, if any, arising from such asset is includible in the income of the person.

(6) All such persons mentioned in (1) to (5) above should, on or before the due date, furnish a return of his income or the income of such other person during the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed.

Meaning of due date:

‘Due date’ means -

(i) 31st October of the assessment year, where the assessee, other than an assessee referred to in (ii) below, is -

(a) a company,

(b) a person (other than a company) whose accounts are required to be audited under the Income-tax Act, 1961 or any other law for the time being in force; or

(c) a partner of a firm whose accounts are required to be audited under the Income-tax Act, 1961 or any other law for the time being in force.

(ii) 30th November of the assessment year, in the case of an assessee who is required to furnish a report referred to in section 92E.

(iii) 31st July of the assessment year, in the case of any other assessee

3. INTEREST FOR DEFAULT IN FURNISHING RETURN OF INCOME [SECTION 234A]

(1) Interest under section 234A is attracted for failure to file a return of income on or before the due date under section 139(1) i.e., interest is payable where an assessee furnishes the return of income after the due date or does not furnish the return of income.

(2) Simple interest @1% per month or part of the month is payable for the period commencing from the date immediately following the due date and ending on the following dates -

Circumstances	Ending on the following dates
Where the return is furnished after	the date	of	furnishing   of	the
due date	return
Where no return is furnished	the     date assessment	of	completion	of

(3) The interest has to be calculated on the amount of tax on total income as determined under section 143(1) or on regular assessment as reduced by the advance tax paid and any tax deducted or collected at source, any relief of tax allowed under section 89 and any tax credit allowed to be set-off in accordance with section 115JD.

(4) No interest under section 234A shall be charged on self-assessment tax paid by the assessee on or before the due date of filing of return.

(5) The interest payable under section 234A shall be reduced by the interest, if any, paid on self-assessment under section 140A towards interest chargeable under section 234A.

4. FEE FOR DEFAULT IN FURNISHING RETURN OF INCOME [SECTION 234F]

Where a person, who is required to furnish a return of income under section 139, fails to do so within the prescribed time limit under section 139(1), he shall pay, by way of fee, a sum of –

Fee	Circumstances
` 5,000	If the return is furnished on or before the 31st December of the assessment year;
` 10,000	In any other case
However, if the total income of the person does not exceed ` 5 lakhs, the fees payable shall not exceed ` 1,000

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