Provisions For Filing Return Of Income And Self Assessment
The Income-tax Act, 1961 contains provisions for filing of return of income. Return of income is the format in which the assessee furnishes information as to his total income and tax payable. The format for filing of returns by different assessees is notified by the CBDT. The particulars of income earned under different heads, gross total income, deductions from gross total income, total income and tax payable by the assessee are generally required to be furnished in a return of income. In short, a return of income is the declaration of income and the resultant tax by the assessee in the prescribed format.
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 referred to in (a) above in accordance with the provisions of the Income-tax Act, 1961.
Meaning of “beneficial owner” and “beneficiary” in respect of an asset for the purpose of section 139:
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.
` 1 crore in one or more current accounts maintained with a banking company or a co-operative bank; or
‘Due date’ means -
Note – Section 92E is not covered within the scope of syllabus of Intermediate Paper 4A: Income-tax Law. Section 139(1) provides a different due date, i.e., 30th November of the assessment year, for assessees who have to file a transfer pricing report under section 92E (i.e. assessees who have undertaken international transactions). Therefore, reference has been made to this section, i.e. section 92E, for explaining this provision in section 139(1).
Circumstances |
Ending on the following dates |
Where the return is furnished after due date |
the date of furnishing of the return |
Where no return is furnished |
the date of completion of assessment |
Note – Section 143(1) provides that if any sum is found due on the basis of a return of income after adjustment of advance tax, relief of tax allowed under section 89, tax deducted at source, tax collection at source and self-assessment tax, an intimation would be sent to the assessee and such intimation is deemed to be a notice of demand issued under section 156. If any refund is due on the basis of the return, it shall be granted to the assessee and an intimation to this effect would be sent to the assessee. Where no tax or refund is due, the acknowledgement of the return is deemed to be an intimation under section 156.
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 ` 5,000.
However, if the total income of the person does not exceed ` 5 lakhs, the fees payable shall not exceed ` 1,000.
Any person who has not furnished a return within the time allowed to him under section 139(1) may furnish the return for any previous year at any time -
If any person having furnished a return under section 139(1) or a belated return under section 139(4), discovers any omission or any wrong statement therein, he may furnish a revised return at any time –
The prescribed form of the return shall, in certain specified cases, require the assessee to furnish the particulars of -
The prescribed form of the return shall, in the case of an assessee engaged in any business or profession, also require him to furnish -
This is irrespective of whether or not he has furnished a return under section 139(1) or belated return under section 139(4) or revised return under section 139(5) for that assessment year.
For example, an updated return for A.Y. 2023-24 can be filed till 31.3.2026.
Note - There are other circumstances also in which updated return cannot be furnished for the relevant assessment year. For example, where prosecution proceedings are initiated under the relevant provisions of the Income-tax Act, 1961. Those circumstances will be dealt with at Final level.
For example if Mr. X has furnished his return of loss for A.Y. 2022-23 on 31.5.2022 consisting of ` 5,00,000 as business loss, he can furnish an updated return for A.Y. 2022-23 upto 31.3.2025 if such updated return is a return of income.
deducted or collected was not furnished under section 203 or section 206C to the person furnishing his return of income, (b) such certificate is produced within a period of 2 years).
(1) |
Proprietary business or profession |
The personal account of the proprietor |
(2) |
Firm, association of persons or body of individuals |
personal accounts of partners or members |
(3) |
Partner or member of a firm, association of persons or body of individuals |
partner’s personal account in firm member’s personal account in the association of persons or body of individuals |
of the business or profession;
However, the CBDT may, by notification, specify that any of the conditions specified in (a) to (f) above would not apply to such class of assessees or apply with such modifications as may be specified.
Note – Many of these particulars are now required to be incorporated as part of the relevant return form, for example, details of tax deducted at source, advance tax paid, self-assessment tax paid, amount of turnover/gross receipts etc.
(1) |
(2) |
(3) |
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Persons required to apply for PAN |
Time limit for making such application (Rule 114) |
(i) |
Every person, if his total income or the total income of any other person in respect of which he is assessable under the Act during any previous year exceeds the maximum amount which is not chargeable to income-tax |
On or before 31st May of the assessment year for which such income is assessable |
(ii) |
Every person carrying on any business or profession whose total sales, turnover or gross receipts are or is likely to exceed ` 5 lakhs in any previous year |
Before the end of that financial year. |
(iii) |
Every person being a resident, other than an individual, which enters into a financial transaction of an amount aggregating to ` 2,50,000 or more in a financial year |
On or before 31st May of the immediately following financial year |
(iv) |
Every person who is a managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer or office bearer of any person referred in (iii) above or any person competent to act on behalf of such person referred in (iii) above |
On or before 31st May of the immediately following financial year in which the person referred in (iii) enters into financial transaction specified therein. |
Further, every person who has not been allotted a PAN and intends to enter into such transaction as prescribed by the CBDT is also required to apply for PAN to the Assessing Officer.
S. No. |
Nature of transaction |
Value of transaction |
1. |
Sale or purchase of a motor vehicle or vehicle, as defined in the Motor Vehicles Act, 1988 which requires registration by a registering authority under that Act, other than two wheeled vehicles. |
All such transactions |
2. |
Opening an account [other than a time- deposit referred to at Sl. No.12 and a Basic Savings Bank Deposit Account] with a banking company or a co- operative bank to which the Banking Regulation Act, 1949 applies (including any bank or banking institution referred to in section 51 of that Act). |
All such transactions |
3. |
Making an application to any banking company or a co-operative bank to which the Banking Regulation Act, 1949, applies (including any bank or banking institution referred to in section 51 of that Act) or to any other company or institution, for issue of a credit or debit card. |
All such transactions |
4. |
Opening of a demat account with a depository, participant, custodian of securities or any other person registered under section 12(1A) of the SEBI Act, 1992. |
All such transactions |
5. |
Payment to a hotel or restaurant against a bill or bills at any one time. |
Payment in cash of an amount exceeding ` 50,000. |
6. |
Payment in connection with travel to any foreign country or payment for purchase of any foreign currency at any one time. |
Payment in cash of an amount exceeding ` 50,000. |
7. |
Payment to a Mutual Fund for purchase of its units |
Amount exceeding ` 50,000. |
8. |
Payment to a company or an institution for acquiring debentures or bonds issued by it. |
Amount exceeding ` 50,000. |
9. |
Payment to the Reserve Bank of India for acquiring bonds issued by it. |
Amount exceeding ` 50,000. |
10. |
Deposit with a banking company or a co-operative bank to which the Banking Regulation Act, 1949, applies (including any bank or banking institution referred to in section 51 of that Act); or post office |
Cash deposits exceeding ` 50,000 during any one day. |
11. |
Purchase of bank drafts or pay orders or banker’s cheques from a banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies (including any bank or banking institution referred to in section 51 of that Act). |
Payment in cash of an amount exceeding ` 50,000. during any one day. |
12. |
A time deposit with, - (i) a banking company or a co- operative bank to which the Banking Regulation Act, 1949 |
Amount exceeding ` 50,000 or aggregating to more than ` 5 lakh during a financial year. |
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applies (including any bank or banking institution referred to in section 51 of that Act); (ii) a Post Office; (iii) a Nidhi referred to in section 406 of the Companies Act, 2013; or (iv) a non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934, to hold or accept deposit from public. |
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13. |
Payment for one or more pre-paid payment instruments, as defined in the policy guidelines for issuance and operation of pre-paid payment instruments issued by Reserve Bank of India under the Payment and Settlement Systems Act, 2007, to a banking company or a co-operative bank to which the Banking Regulation Act, 1949, applies (including any bank or banking institution referred to in section 51 of that Act) or to any other company or institution. |
Payment in cash or by way of a bank draft or pay order or banker’s cheque of an amount aggregating to more than ` 50,000 in a financial year. |
14. |
Payment as life insurance premium to an insurer as defined in the Insurance Act, 1938. |
Amount aggregating to more than ` 50,000 in a financial year. |
15. |
A contract for sale or purchase of securities (other than shares) as defined in section 2(h) of the Securities Contracts (Regulation) Act, 1956. |
Amount exceeding ` 1 lakh per transaction |
16. |
Sale or purchase, by any person, of shares of a company not listed in a recognised stock exchange. |
Amount exceeding ` 1 lakh per transaction. |
17. |
Sale or purchase of any immovable property. |
Amount exceeding ` 10 lakh or valued by stamp valuation authority referred to in |
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section 50C at an amount exceeding ` 10 lakh |
18. |
Sale or purchase, by any person, of goods or services of any nature other than those specified at Sl. No. 1 to 17 of this Table, if any. |
Amount exceeding ` 2 lakh per transaction: |
Where a person, entering into any transaction referred to in this rule, is a minor and who does not have any income chargeable to income-tax, he shall quote the PAN of his father or mother or guardian, as the case may be, in the document pertaining to the said transaction.
Further, any person who does not have a PAN and who enters into any transaction specified in this rule, shall make a declaration in Form No.60 giving therein the particulars of such transaction either in paper form or electronically under the electronic verification code in accordance with the procedures, data structures, and standards specified by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems).
The provisions of this rule shall not apply to the following class or classes of persons, namely:-
Meaning of certain phrases:
|
Phrase |
Inclusion |
(1) |
Payment in connection with travel |
Payment towards fare, or to a travel agent or a tour operator, or to an authorized person as defined in section 2(c) of the Foreign Exchange Management Act, 1999 |
(2) |
Travel agent or tour operator |
A person who makes arrangements for air, surface or maritime travel or provides services relating to accommodation, tours, entertainment, passport, visa, foreign exchange, travel related insurance or other travel related services either severally or in package |
(3) |
Time deposit |
Any deposit which is repayable on the expiry of a fixed period. |
Every person who receives any amount from which tax has been deducted at source shall intimate his PAN to the person responsible for deducting such tax [Sub-section (5A)].
Similarly, every buyer or licensee or lessee referred to in section 206C shall intimate his PAN to the person responsible for collecting such tax [Sub- section (5C)]
Where any amount has been paid after deducting tax at source, the person deducting tax shall quote the PAN of the person to whom the amount was paid in the following documents:
Also, every person collecting tax in accordance with the provisions of section 206C shall quote PAN of every buyer or licensee or lessee in the following documents:
(iv) in all statements prepared and delivered or caused to be delivered in accordance with the provisions of section 206C(3) [Sub-section (5D)].
The above sub-sections (5A) and (5B) shall not apply to a person who –
if such person furnishes a declaration under section 197A in the prescribed form and manner that the tax on his estimated total income for that previous year will be nil.
Every person who is required to furnish or intimate or quote his PAN may furnish or intimate or quote his Aadhar Number in lieu of the PAN, if he
PAN would be allotted in prescribed manner to a person who has not been allotted a PAN but possesses Aadhar number.
Accordingly, the CBDT has, vide Notification No. 59/2019, dated 30.8.2019, provide that any person, who has not been allotted a PAN but possesses the Aadhaar number and has furnished or intimated or quoted his Aadhaar number in lieu of the PAN, shall be deemed to have applied for allotment of PAN and he shall not be required to apply or submit any documents.
Further, any person, who has not been allotted a PAN but possesses the Aadhaar number may apply for allotment of the PAN under section 139A(1)/(1A)/(3) by intimating his Aadhaar number and he shall not be required to apply or submit any documents.
The CBDT is empowered to make rules with regard to the following:
|
Term |
Meaning |
(i) |
Aadhar number |
An identification number issued to an individual by the Authority on receipt of the demographic information and biometric information after verifying the information by the authority. It includes any alternative virtual identity generated by the Authority in the prescribed manner. |
(ii) |
Authentication |
The process by which the PAN or Aadhar number along with demographic information or biometric information of an individual is submitted to the income-tax authority or such other prescribed authority or agency for its verification and such authority or agency verifies the correctness, or the lack thereof, on the basis of information available with it. |
Every person who is eligible to obtain Aadhar Number is required to mandatorily quote Aadhar Number:
Quoting of Aadhaar Number mandatory in returns filed on or after 1.4.2019 [Circular No. 6/2019 dated 31.03.2019]
As per section 139AA(1)(ii), with effect from 01.07.2017, every person who is eligible to obtain Aadhaar number has to quote Aadhaar number in the return of income.
The Apex Court in a series of judgments has upheld the validity of section 139AA. Consequently, with effect from 01.04.2019, the CBDT has clarified that it is mandatory to quote Aadhaar number while filing the return of income unless specifically exempted as per any notification issued under section 139AA(3) [detailed in point no. (5) in the next page]. Thus, returns being filed either electronically or manually on or after 1.4.2019 cannot be filed without quoting the Aadhaar number.
If a person does not have Aadhar Number, he is required to quote Enrolment ID of Aadhar application form issued to him at the time of enrolment in the application form for allotment of Permanent Account Number (PAN) or in the return of income furnished by him.
Enrolment ID means a 28 digit Enrolment Identification Number issued to a resident at the time of enrolment
Every person who has been allotted Permanent Account Number (PAN) as on 1st July, 2017, and who is eligible to obtain Aadhar Number, shall intimate his Aadhar Number to prescribed authority on or before 31st March, 2022.
Notwithstanding the last date of intimating/linking of Aadhaar Number with PAN being 31.03.2022, it is clarified that w.e.f. 01.04.2019, it is mandatory to quote and link Aadhaar number while filing the return of income, either manually or electronically, unless specifically exempted in cases detailed in point (5) below.
If a person fails to intimate the Aadhar Number, the permanent account Number (PAN) allotted to such person shall be made inoperative after the date so notified in the prescribed manner.
Accordingly, Rule 114AAA specifies the manner of making permanent account number inoperative.
Sub- Rule |
Provision |
(1) |
If a person, who has been allotted PAN as on 1st July, 2017 and is required to intimate his Aadhaar number under section 139AA(2), has failed to intimate the same on or before 31st March, 2022, the PAN of such person would become inoperative immediately after the said date (i.e., after 31st March, 2022) for the purposes of furnishing, intimating or quoting under the Income-tax Act, 1961. |
(2) |
Accordingly, where a person, whose PAN has become inoperative, is required to furnish, intimate or quote his PAN under the Act, it shall be deemed that he has not furnished, intimated or quoted the PAN, as the case may be, in accordance with the provisions of the Act. Consequently, he would be liable for all the consequences under the Act for not furnishing, intimating or quoting the PAN. However, the consequences shall have effect from the date specified by the CBDT i.e., 1st April, 2023. |
(3) |
Where such person who has not intimated his Aadhaar number on or before 31st March, 2022, intimates his Aadhar number under section 139AA(2) after 31st March, 2022 after payment of fee specified in section 234H read with Rule 114(5A), his PAN would become operative from the date of intimation of Aadhaar number for the purposes of furnishing, intimating or quoting under the Act. Accordingly, the consequences in sub- rule (2) would not be applicable from such date of intimation. |
(4) |
The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) has to specify the formats and standards along with the procedure for verifying the operational status of PAN under sub-rules (1) and (2). |
Section 139AA(2) makes it mandatory for every person who has been allotted a PAN as on 1st July, 2017 to intimate his Aadhaar Number so that the Aadhaar and PAN can be linked. This is required to be done on or before a notified date, failing which the PAN would become inoperative.
Accordingly, in case of failure to intimate the Aadhaar Number by 31.03.2022, the PAN allotted to the person would be made inoperative. Further, section 234H provides that where a person who is required to intimate his Aadhaar under section 139AA(2) fails to do so on or before a
notified date, he would be liable to pay a fee not exceeding ` 1,000, as may be prescribed, at the time of making intimation under section 139AA(2) after the said date.
Further, Rule 114AAA provides that if PAN of a person has become inoperative, he will not be able to furnish, intimate or quote his PAN and would be liable to all the consequences under the Act for such failure. This will have a number of implications such as:-
In addition to the above, the tax payer might face difficulty at various other fora like banks and other financial portals, as PAN is one of the important KYC criterion for all kinds of financial transactions.
As per Rule 114AAA(2), where a person, whose PAN has become inoperative under Rule 114AAA(1), is required to furnish, intimate or quote his PAN, it would be deemed that he has not furnished, intimated or quoted the PAN, as the case may be, in accordance with the provisions of the Act. Consequently, he would be liable for all the consequences under the Act for not furnishing, intimating or quoting the PAN.
In order to have smooth application of section 234H and existing rule 114AAA, it is clarified that the impact of Rule 114AAA(2) would come into effect from 1st April, 2023; and the period beginning from 1st April, 2022 and ending with 31st March, 2023, would be the period during which Rule 114AAA(2) would not have its negative consequences.
However, the tax payer would be liable to pay a fee in accordance with section 234H read with Rule 114(5A).
The provisions of section 139AA relating to quoting of Aadhar Number would, however, not apply to such person or class or classes of persons or
any State or part of any State as may be notified by the Central Government.
Accordingly, the Central Government has, vide Notification No. 37/2017 dated 11.05.2017 effective from 01.07.2017, notified that the provisions of section 139AA relating to quoting of Aadhar Number would not apply to an individual who does not possess the Aadhar number or Enrolment ID and is:
Where a person, who is required to intimate his Aadhar Number under section 139AA(2), fails to do so on or before the notified date i.e., 31st March, 2022, he would be liable to pay such fee, as may be prescribed, at the time of making intimation under section 139AA(2) after 31st March, 2022.
However, such fee shall not exceed ` 1,000.
As per section 139AA(2), every person who has been allotted PAN as on 1st July, 2017 and eligible to obtain Aadhar Number, is required to intimate his Aadhaar number to the prescribed authority in the prescribed form and manner.
Accordingly, the CBDT has, vide notification no. 17/2022 dated 29.3.2022, inserted Rule 114(5A) to provide that if such person fails to do so by the date notified in section 139AA(2) i.e., 31st March, 2022, then at the time of subsequent intimation of his Aadhaar number to the prescribed authority, such person would be liable to pay, by way of fee, an amount equal to, —
who has been authorized to act as a Tax Return Preparer under the Scheme.
Particulars |
Contents |
Applicability of the scheme |
The scheme is applicable to all eligible persons. |
Eligible person |
Any person being an individual or a Hindu undivided family. |
Tax Return Preparer |
Any individual who has been issued a "Tax Return Preparer Certificate" and a "unique identification number" under this Scheme by the Partner Organisation to carry on the profession of preparing the returns of income in accordance with the Scheme. However, the following person are not entitled to act as Tax Return Preparer: (i) any officer of a scheduled bank with which the assessee maintains a current account or has other regular dealings. (ii) any legal practitioner who is entitled to practice in any civil court in India. (iii) an accountant. |
Educational qualification for Tax Return Preparers |
An individual, who holds a bachelor degree from a recognised Indian University or institution, or has passed the intermediate level examination conducted by the Institute of Chartered Accountants of India or the Institute of Company Secretaries of India or the Institute of Cost Accountants of India, shall be eligible to act as Tax Return Preparer. |
Preparation of and furnishing the Return of Income by the |
An eligible person may, at his option, furnish his return of income under section 139 for any assessment year after getting it prepared through a Tax Return Preparer: |
Tax Return Preparer |
However, the following eligible person (an individual or a HUF) cannot furnish a return of income for an assessment year through a Tax Return Preparer: (i) who is carrying out business or profession during the previous year and accounts of the business or profession for that previous year are required to be audited under section 44AB or under any other law for the time being in force; or (ii) who is not a resident in India during the previous year. An eligible person cannot furnish a revised return of income for any assessment year through a Tax Return Preparer unless he has furnished the original return of income for that assessment year through such or any other Tax Return Preparer. |
This section specifies the persons who are authorized to verify the return of income under section 139.
|
Assessee |
Circumstance |
Authorised Persons |
1. |
Individual |
(i) In circumstances not covered under (ii), (iii) & (iv) below |
- the individual himself |
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(ii) where he is absent from India |
- the individual himself; or - any person duly authorised by him in this behalf holding a valid power of attorney from the individual (Such power of attorney should be attached to the return of income) |
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(iii) where he is mentally incapacitated from attending to his affairs |
- his guardian; or - any other person competent to act on his behalf |
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(iv) where, for any other reason, it is not possible for the indi- vidual to verify the return |
- any person duly authorised by him in this behalf holding a valid power of attorney from the individual (Such power of attorney should be attached to the return of income) |
2. |
Hindu Undivided Family |
(i) in circumstances not covered under (ii) and (iii) below |
- the karta |
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(ii) where the karta is absent from India |
- any other adult member of the HUF |
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(iii) where the karta is mentally incapacitated from attending to his affairs |
- any other adult member of the HUF |
3. |
Company |
(i) in circumstances not covered under (ii) to (vi) below |
- the managing director of the company |
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(ii) (a) where for any unavoidable reason such managing director is not able to verify the return; or (b) where there is no managing director |
any director of the company or any other person as may be prescribed for this purpose |
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(iii) where the company is not resident in India |
a person who holds a valid power of attorney from such company to do so (such power of attorney should be attached to the return). |
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(iv) (a) Where the company is being wound up (whether under the orders of a court or otherwise); or (b) where any person has been appointed as the receiver of any assets of the company |
- Liquidator
- Liquidator |
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(v) Where the management of the company has been taken over by the Central Government or any State Government under any law |
- the principal officer of the company |
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(vi) Where an application for corporate insolvency resolution process has been admitted by the Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016. |
- insolvency professional appointed by such Adjudicating Authority |
4. |
Firm |
(i) in circumstances not covered under (ii) below |
- the managing partner of the firm |
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(ii) (a) where for any unavoidable reason such managing partner is not able to verify the return; or (b) where there is no managing partner. |
- any partner of the firm, not being a minor
- any partner of the firm, not being a minor |
5. |
LLP |
(i) in circumstances not covered under (ii) below |
- Designated partner |
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(ii) (a) where for any unavoidable reason such designated partner is not able to verify the return; or (b) where there is no designated partner. |
any partner of the LLP or any other person as may be prescribed for this purpose |
6. |
Local authority |
- |
- the principal officer |
7. |
Political party 3 |
- |
- the chief executive officer of such party (whether he is known as secretary or by any other designation) |
8. |
Any other association |
- |
- any member of the association or the principal officer of such association |
9. |
Any other person |
- |
- that person or some other person competent to act on his behalf. |
Any other person in case of company and LLP - The CBDT has, vide Notification No. 93/2021 dated 18.8.2021, specified that “any other person” referred to in section 140(c) and 140(cd) for company and LLP, respectively, shall be the person, appointed by the Adjudicating Authority (i.e., National Company Law Tribunal constituted under section 408 of the Companies Act, 2013) for discharging the duties and functions of an interim resolution professional, a resolution professional, or a liquidator, as the case may be, under the Insolvency and Bankruptcy Code, 2016 and the rules and regulations made thereunder.
Where any tax is payable on the basis of any return required to be furnished under, inter alia, section 139, after taking into account -
the assessee shall be liable to pay such tax together with interest and fee payable under any provision of this Act for any delay in furnishing the return or any default or delay in payment of advance tax before furnishing the return. The return shall be accompanied by the proof of payment of such tax, interest and fee.
Where the amount paid by the assessee under section 140A(1) falls short of the aggregate of the tax, interest and fee as aforesaid, the amount so paid shall first be adjusted towards the fee payable and thereafter towards interest and the balance, if any, shall be adjusted towards the tax payable.
For the above purpose, interest payable under section 234A shall be computed on the amount of tax on the total income as declared in the return, as reduced by the amount of-
Interest payable under section 234B shall be computed on the assessed tax or on the amount by which the advance tax paid falls short of the assessed tax.
For this purpose “assessed tax” means the tax on total income declared in the return as reduced by the amount of
If any assessee fails to pay the whole or any part of such of tax or interest or fee, he shall be deemed to be an assessee in default in respect of such tax or interest or fee remaining unpaid and all the provisions of this Act shall apply accordingly.
QUICK RECAP
Mandatory Quoting of PAN under section 139A |
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In all returns to, and correspondenc e with, any, income tax authority |
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In all challans for the payment of sum due under the Act |
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In all documents pertaining to such transactions entered into by him as prescribed by CBDT in the interests of revenue |
Quoting of Aadhar Number under section 139AA |
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To be quoted on or after 1/7/2017 in the application for allotment of PAN and in Return of Income |
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If he does not have Aadhar Number, the enrolment ID of Aadhar application form issued to him at the time of enrolmenty shall be quoted |
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Aadhar Number to be intimated to prescribed authority by 31.3.2022 |
Self-assessment under section 140A |
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Tax Payable = Tax on Total Income – Advances tax paid – TDS/TCS – relief u/s 89 – tax credit claimed to be set-off in accordance with section 115JD – tax and inerest payable under section 191(2) |
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Return to be accompained by proof of payment of Taxpayable + Interest u/s 234A, 234B and 234C + Fee payable u/s 234F |
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Order of adjustment of amount paid Fee, Interest and tax |
Where no return of income under section 139(1) or 139(4) has been furnished by an assessee and tax is payable, on the basis of updated return to be
furnished by such assessee under section 139(8A), the assessee would be liable to pay such tax together with interest and fee payable under any provision of this Act for any delay in furnishing the return or any default or delay in payment of advance tax, along with the payment of additional tax computed under section 140B(3), before furnishing the return.
The tax payable is to be computed after taking into account the following -
The return has to be accompanied by the proof of payment of such tax, additional tax, interest and fee.
Where, return of income under section 139(1) or 139(4) or 139(5) has been furnished by an assessee and tax is payable, on the basis of updated return to be furnished by such assessee under section 139(8A), the assessee would be liable to pay such tax together with interest payable under any provision of this Act for any default or delay in payment of advance tax, along with the payment of additional tax computed under section 140B(3) (as reduced by the amount of interest paid under the provisions of this Act in the earlier return) before furnishing the return.
The tax payable has to be computed after taking into account the following -
The aforesaid tax would be increased by the amount of refund, if any, issued in respect of such earlier return.
The return has to be accompanied by the proof of payment of such tax, additional tax, interest and fee.
The additional income-tax payable at the time of furnishing the updated return under section 139(8A) would be –
In a case where an earlier return has been furnished, interest payable under section 234B has to be computed on the assessed tax or, as the case may be, on the amount by which the advance tax paid falls short of the assessed tax.
“Assessed tax” means the tax on the total income as declared in the updated return to be furnished under section 139(8A), after taking into account the following:
The aforesaid tax would be increased by the amount of refund, if any, issued in respect of such earlier return.
In case of any difficulty arises in giving effect to the provisions of this section, the CBDT may issue guidelines for the purpose of removing the difficulty, with the approval of the Central Government. Every guideline issued shall be laid before each House of Parliament.
For the purpose of computation of Additional income-tax”,
However, the interest paid in the earlier return would be considered to be nil, if no earlier return has been furnished.
In a case, where no earlier return has been furnished, the interest payable under section 234A has to be computed on the amount of the tax on the total income as declared in the updated return under section 139(8A), in accordance with the provisions of sub-section (1A) of section 140A.
Interest payable under section 234C, where an earlier return has been furnished, has to be computed after taking into account the income furnished in the return under section 139(8A) as the returned income.
Ruchika Ma'am has been a meritorious student throughout her student life. She is one of those who did not study from exam point of view or out of fear but because of the fact that she JUST LOVED STUDYING. When she says - love what you study, it has a deeper meaning.
She believes - "When you study, you get wise, you obtain knowledge. A knowledge that helps you in real life, in solving problems, finding opportunities. Implement what you study". She has a huge affinity for the Law Subject in particular and always encourages student to - "STUDY FROM THE BARE ACT, MAKE YOUR OWN INTERPRETATIONS". A rare practice that you will find in her video lectures as well.
She specializes in theory subjects - Law and Auditing.
Yash Sir (As students call him fondly) is not a teacher per se. He is a story teller who specializes in simplifying things, connecting the dots and building a story behind everything he teaches. A firm believer of Real Teaching, according to him - "Real Teaching is not teaching standard methods but giving the power to students to develop his own methods".
He cleared his CA Finals in May 2011 and has been into teaching since. He started teaching CA, CS, 11th, 12th, B.Com, M.Com students in an offline mode until 2016 when Konceptca was launched. One of the pioneers in Online Education, he believes in providing a learning experience which is NEAT, SMOOTH and AFFORDABLE.
He specializes in practical subjects – Accounting, Costing, Taxation, Financial Management. With over 12 years of teaching experience (Online as well as Offline), he SURELY KNOWS IT ALL.