Course : CA FinalFor many more such videos join us at www.caguru.inAssessment procedures under Income Tax Act, 1961 -ContentsCourse : CA FinalFor many more such videos join us at www.caguru.inObligation to file returnof IncomeCompany or Firm•Mandatory irrespective of level of income•Newly incorporated Company•Foreign company/firm operating in India•Company/firm, even if there income is exempt•Company is in the process of setting up there business•Loss making companies•Defunct companies/firmsPerson other than company or firm•For a person other than company or firm, it is mandatory, only when : -•Either there own total income ; or •Total income of any other person in respect of which they are assessableexceeds maximum amount which is not chargeable to income-tax in respect of that category of personOthers -Refer subsequent slides•Trust •Political Party•Research organization•University educational •Hospital•UniversityCourse : CA FinalFor many more such videos join us at www.caguru.inObligation to file return of Income –Section 139(1)Other points Return shall be filed on or before the due date,in the prescribed form and verified in the prescribed mannerAgricultural incomeWhere non-agricultural income of an individual /HUF is less than exemption limit, he is not under an obligation to file his return of income.Course : CA FinalFor many more such videos join us at www.caguru.inDue Date of Return of IncomeDue date for the purpose of filing ROI for various category of assessee is as under :-‘Company’,30th September of the assessment year‘Person other than a company ’ whose accounts are required to be audited under Income Tax Act or any other lawWorking partner in a firm whose accounts are required to be audited under Income Tax Act or any other lawAny other assessee31st July of the assessment year.Course : CA FinalFor many more such videos join us at www.caguru.inEntities claiming benefit of Section 10A etc.Where total income before giving effect to Section 10A or section 10 B or section 10 AA or Chapter Vl-A exceeded the maximum amount which is not chargeable to income-tax, shall also be under an obligation to file ROIIndividualAnyotherartificialjuridicalpersonAOPBody of individualHUFCourse : CA FinalFor many more such videos join us at www.caguru.inOther issues arising out of ROIITR ApplicabilityTax Audit Report (TAR)TAR is not required to be furnished alongwithor after the due date of filing return but should be obtained before due date of filing ROI –This may be furnished in original during assessment proceedings. If however, its not obtained before due date, penalty u/s 271B shall be attractedAny other documentsNot required to be attached along with ROI, except TP report which is required to be obtained and furnished before the due date of filing return either separately or along with ROI –Rule 10EDate of filing ROIWhere ROI is not digitally signed, but ITR V is filed withinspecified time,date of transmission of data else. Otherwise it would be deemed that return has not been filed.TDS and Advance tax creditTDS certificates, challanetc are not required to be furnished alongwithROI but basis the information provided in schedule , subject to matching with data provided by deductor/BanksCourse : CA FinalFor many more such videos join us at www.caguru.inMandatoryFiling of Electronic ReportCompany or Firm•Company•Firm liable to tax audit u/s 44ABOther •Optional for them to file electronic returnWhere ROI is digitally signed, taxpayer is not required to file Form ITR V with IT Department post transmission of dataCourse : CA FinalFor many more such videos join us at www.caguru.in8Return of Loss –Section 139(3) read with Section 80●Return of Loss can also be filed within the time allowed under section 139(1) or thereafter, in the prescribed form ●The following losses cannot be carried forward, despite provision of Chapter VI, if the return of loss has not been submitted in time (Section 80) :-●Business Loss (speculation or otherwise )●Capital loss ●Loss from the activity of owning and maintaining race horses ●Following are unaffected, even if ROI is filed after due date : -●Income from HP is carried forward u/s 71B and can be carried forward even if the ROI has not been filed before the due date of filing of ROI●Set-off and carry forward of depreciation is governed by section 32(2) which does not forms part of Chapter VI. As the provision of Section 80 over-rides only Chapter VI, it would not affect carry forward and set off of depreciation. (SC in the case of East Asiatic company India Private Limited)Extension of time cannot be granted by the Assessing officer Course : CA FinalFor many more such videos join us at www.caguru.in9Belated Return –Section 139(4)●In either of the following two circumstances , namely ●Where a return of income has not been filed within time allowed under Section 139(1); or●Within the time amount allowed under notice issued under Section 142(1)the assessee has an option to file his return of income before the end of one year from the end of the relevant assessment yearprovided the assessment u/s 144 has not been completed.Consequences ●Penal interest u/s 234A●Penalty of INR 5,000 where the return is submitted after the end of the assessment year .●Certain losses cannot be carried forward●Deductions under section 10A, 10B, 80IA, 80IAB, 80IB, 80IC, 80ID and 80IE are not available Course : CA FinalFor many more such videos join us at www.caguru.in10Belated Return -Practical Questions and Illustrations ParticularsCase ICase IICase IIIAY2010-20112010-2011Date of completionof AssessmentApril, 14, 2012February 14, 2012Date of signingof orderApril, 15, 2012February, 15, 2012Date of service of orderApril, 18, 2012February, 18, 2012Dateof filing ROINAFebruary17, 2012What if an appeal was filed by assessee to CIT, who setaside the order of AO ?SOLUTIONOneyear from end of AYMarch 31, 2012March 31, 2012Completion of Assessment???????Where the assessment is cancelled, it takes place from very beginning.Hence, since ROI is filed within time allowed u/s 139(4) , it’s a belated ROICourse : CA FinalFor many more such videos join us at www.caguru.in11Revised Return –Section 139(5)If any person, ●having furnished a return u/s 139(1) orreturn filed in pursuance of a notice issued under sub-section (1) of section 142, ●discovers any omission or any wrong statement therein, ●he mayfurnish a revised return ●before the expiry of one year from the end of the relevant assessment year orbefore the completion of the assessment, whichever is earlierNotes●Belated return cannot be revised –Kumar JagdishChandra Sinha(SC)●Revised return substitutes original return from date of original return, which is deemed to have been withdrawn –Dhampur Sugar Mills Limited (SC)●Return filed u/s 139(3), is deemed to be return filed u/s 139(1) and hence can be revised u/s 139(5)●Omission must be due to the bonafide mistake or inadvertent omission●If a person files a return knowing it to be false, he cannot revise it as it is not an omission or any wrong statement. ●Revising return after the omission is discovered by Tax office after inquiry is not permissibleCourse : CA FinalFor many more such videos join us at www.caguru.in12Revised Return –Section 139(5) –Practical Questions and Illustrations ParticularsCase ICase IICase IIICase IVDue Date31.10.201131.10.201131.10.2011AO issues notice to file ROI u/s 142(1) On 12.11.2011 to file ROI by30.11.2011On 12.11.2011 to file ROI by30.11.2011ROI filed on 29.11.201129.12.201131.10.2011, Nil incomeRevised return filed on31.12.2011, declaring loss of Rs. 500,000. QuestionCan assessee file revised return ?Can assessee file revised return ?Is this a valid revised return ? If yes,can loss be carried forward ?If ROI was filed on November 12, would the lossbe c/f in case III ?Can the return filed in case III be revised on January 3, 2012 for loss of Rs. 10,00,000 ?Course : CA FinalFor many more such videos join us at www.caguru.in13Return of Loss –Section 139(3) –Practical Questions and Illustrations S.No.Head of IncomeIncome /LossQuestion1.PGBP(8,00,000)Incomefrom Other Sources12,00,000Can this be set off if ROI for AY 2011-12 is filed on October 18, 20112.PGBP(14,00,000)Incomefrom Other Sources12,00,000Can this be set off if ROI for AY 2011-12 is filed on October 20, 2011. If so, how much carry forward is allowed ?3.Would the position be different if in question2, PGBP loss included depreciation of Rs. 2,00,0004.Would the position be different if in question2, PGBP loss included depreciation of Rs. 1,00,000Course : CA FinalFor many more such videos join us at www.caguru.in14Return of Loss –Section 139(3) –Practical Questions and Illustrations S.No.Head of IncomeIncome /LossQuestion1.PGBP(8,00,000)Incomefrom Other Sources12,00,000Can this be set off if ROI for AY 2011-12 is filed on October 18, 2011, in pursuance of a notice issued u/s 142(1)2.PGBP(14,00,000)Can the B/flosses be set off if ROI for AY 2011-12 is filed on October 18, 2011 ? Incomefrom Other Sources12,00,000Brought forward business loss for AY 2010-2011(3,00,000)Course : CA FinalFor many more such videos join us at www.caguru.in15Belated Return –Section 139(4)●In either of the following two circumstances , namely ●Where a return of income has not been filed within time allowed under Section 139(1); or●Within the time amount allowed under notice issued under Section 142(1)the assessee has an option to file his return of income before the end of one year from the end of the relevant assessment yearprovided the assessment u/s 144 has not been completed.Consequences ●Penal interest u/s 234A●Penalty of INR 5,000 where the return is submitted after the end of the assessment year .●Certain losses cannot be carried forward●Deductions under section 10A, 10B, 80IA, 80IAB, 80IB, 80IC, 80ID and 80IE are not available