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What is the purpose of a return of income?
What is the purpose of a return of income?
To furnish information regarding total income and tax payable
Who is required to compulsorily file a return of income?
Who is required to compulsorily file a return of income?
The basic exemption limit for individuals under the default tax regime is ₹3,00,000.
The basic exemption limit for individuals under the default tax regime is ₹3,00,000.
True
The due date for filing a return of income is usually on or before the _____ in the prescribed form.
The due date for filing a return of income is usually on or before the _____ in the prescribed form.
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Match the following provisions with their descriptions:
Match the following provisions with their descriptions:
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When is the due date for filing the return of income for an assessee who is a partner of a firm?
When is the due date for filing the return of income for an assessee who is a partner of a firm?
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Interest under section 234A is charged for failure to file a return of income after the due date under section 139(1).
Interest under section 234A is charged for failure to file a return of income after the due date under section 139(1).
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Under what circumstances is interest under section 234A payable?
Under what circumstances is interest under section 234A payable?
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Under what conditions does a person need to file their return of income as per Rule 12AB?
Under what conditions does a person need to file their return of income as per Rule 12AB?
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What does 'due date' refer to in income tax law?
What does 'due date' refer to in income tax law?
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When is the extended due date for filing return of income as per Section 139(1)?
When is the extended due date for filing return of income as per Section 139(1)?
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True or False: An individual is required to furnish a return of income under section 139(1) if their total income exceeds the maximum amount not chargeable to tax.
True or False: An individual is required to furnish a return of income under section 139(1) if their total income exceeds the maximum amount not chargeable to tax.
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Which section requires mandatory filing of return of loss for specific types of losses?
Which section requires mandatory filing of return of loss for specific types of losses?
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When will additional income-tax be 25% of the aggregate of tax and interest payable?
When will additional income-tax be 25% of the aggregate of tax and interest payable?
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When will additional income-tax be 50% of the aggregate of tax and interest payable?
When will additional income-tax be 50% of the aggregate of tax and interest payable?
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When does a return of income become regarded as defective?
When does a return of income become regarded as defective?
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Quoting of PAN is mandatory in all documents pertaining to certain transactions.
Quoting of PAN is mandatory in all documents pertaining to certain transactions.
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What is the consequence if an assessee fails to pay the whole or any part of tax, interest, or fee?
What is the consequence if an assessee fails to pay the whole or any part of tax, interest, or fee?
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What is the time frame within which an updated return of income can be furnished?
What is the time frame within which an updated return of income can be furnished?
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If the updated return results in a refund or increases the refund due, the provisions of updated return will not apply. True or False?
If the updated return results in a refund or increases the refund due, the provisions of updated return will not apply. True or False?
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What are the circumstances in which an updated return cannot be furnished?
What are the circumstances in which an updated return cannot be furnished?
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What is the maximum amount allowed for payment in cash at a hotel or restaurant against a bill?
What is the maximum amount allowed for payment in cash at a hotel or restaurant against a bill?
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Which of the following transactions require payment not to exceed `50,000 at any one time? (Select all that apply)
Which of the following transactions require payment not to exceed `50,000 at any one time? (Select all that apply)
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A time deposit with a banking company or a co-operative bank must not exceed __ during any financial year.
A time deposit with a banking company or a co-operative bank must not exceed __ during any financial year.
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Every person receiving a document related to specified transactions must ensure the PAN or Aadhaar number is quoted.
Every person receiving a document related to specified transactions must ensure the PAN or Aadhaar number is quoted.
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According to Section 139AA, who is required to mandatorily quote Aadhaar Number?
According to Section 139AA, who is required to mandatorily quote Aadhaar Number?
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As per the provisions of section 139AA, the PAN of a person shall become inoperative if they fail to intimate their Aadhaar number by 31st March, 2022.
As per the provisions of section 139AA, the PAN of a person shall become inoperative if they fail to intimate their Aadhaar number by 31st March, 2022.
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Explain the consequences of failure to intimate Aadhaar Number as per the content provided.
Explain the consequences of failure to intimate Aadhaar Number as per the content provided.
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In what circumstances can an individual authorize another person to file their income tax return on their behalf?
In what circumstances can an individual authorize another person to file their income tax return on their behalf?
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Who can file the income tax return on behalf of a Hindu Undivided Family if the karta is mentally incapacitated?
Who can file the income tax return on behalf of a Hindu Undivided Family if the karta is mentally incapacitated?
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A company being wound up can have its return verified by a liquidator.
A company being wound up can have its return verified by a liquidator.
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In which circumstances can a firm authorize any partner to verify the return? When for any unavoidable reason such managing partner is not able to verify the return, or where there is no ________ partner.
In which circumstances can a firm authorize any partner to verify the return? When for any unavoidable reason such managing partner is not able to verify the return, or where there is no ________ partner.
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What are the consequences faced by a person whose PAN has become inoperative?
What are the consequences faced by a person whose PAN has become inoperative?
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What is the fee amount if the Aadhaar number was intimated on or before 30.06.2022?
What is the fee amount if the Aadhaar number was intimated on or before 30.06.2022?
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Provisions of section 139AA relating to quoting of Aadhaar Number do not apply to individuals residing in Assam, Jammu & Kashmir, and Meghalaya.
Provisions of section 139AA relating to quoting of Aadhaar Number do not apply to individuals residing in Assam, Jammu & Kashmir, and Meghalaya.
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Who is not authorized to act as a Tax Return Preparer?
Who is not authorized to act as a Tax Return Preparer?
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Match the following qualifications for Tax Return Preparers:
Match the following qualifications for Tax Return Preparers:
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Study Notes
Provisions for Filing Return of Income and Self-Assessment
Chapter Overview
- The chapter deals with the provisions of filing return of income and self-assessment.
- It covers various aspects such as compulsory filing of return of income, due date for filing, interest and fee for default, and revised and updated returns.
Return of Income
- A return of income is a format in which an assessee furnishes information about their total income and tax payable.
- The format for filing returns is notified by the Central Board of Direct Taxes (CBDT).
- A return of income typically includes particulars of income earned under different heads, gross total income, deductions, and tax payable.
Compulsory Filing of Return of Income [Section 139(1)]
- Companies and firms are required to file a return of income or loss for every previous year.
- Individuals, HUFs, AOPs, and BOIs with a total income exceeding the basic exemption limit are required to file a return of income.
- The basic exemption limit is ₹3,00,000 for individuals, HUFs, AOPs, and BOIs under the default tax regime.
- However, if the assessee exercises the option of shifting out of the default tax regime, the basic exemption limit would be ₹2,50,000.
- Residents with a total income exceeding the basic exemption limit are required to file a return of income, even if they are not ordinarily resident in India.
- Beneficial owners and beneficiaries of assets located outside India are also required to file a return of income.
Due Date for Filing Return of Income
- The due date for filing a return of income is 31st October of the assessment year for companies, persons with audited accounts, and partners of firms with audited accounts.
- The due date is 30th November of the assessment year for assessees who have to file a transfer pricing report.
- The due date is 31st July of the assessment year for other assessees.
Specified Class or Classes of Persons to be Exempted from Filing Return of Income [Section 139(1C)]
- The Central Government has the power to notify the class or classes of persons who will be exempted from filing a return of income, subject to satisfying prescribed conditions.
Return of Loss [Section 139(3)]
- An assessee is required to file a return of loss in the same manner as a return of income within the time allowed under Section 139(1).
- A return of loss is required to be filed even if the assessee is not mandatorily required to file a return of income.### Filing Return of Income
- Mandatory filing of return of income under Section 139(1) applies to:
- Residents having any asset located outside India
- Individuals/HUFs/AOPs/BOIs with total income exceeding the basic exemption limit
- Persons with total sales/turnover/gross receipts > ₹60 lakhs in business
- Persons with total gross receipts > ₹10 lakhs in profession
- Persons with aggregate TDS and TCS credit ≥ ₹25,000 (₹50,000 for senior citizens)
- Persons with deposit in one or more savings bank accounts ≥ ₹50 lakhs
Due Date of Filing Return
- 30th November of the assessment year for assessees required to furnish a report under Section 92E
- 31st October of the assessment year for companies and persons whose accounts are required to be audited
- 31st July of the assessment year for any other assessee
Loss Return
- Mandatory filing of return of loss under Section 139(3) is required for carry forward of losses under:
- Section 72(1) (business loss)
- Section 73(2) (speculation business loss)
- Section 73A(2) (loss from specified business)
- Section 74(1) (loss under the head "Capital Gains")
- Section 74A(3) (loss from the activity of owning and maintaining race horses)
Belated Return
- Can be filed under Section 139(4) if return not filed within the time specified under Section 139(1)
- Can be filed at any time before:
- Three months prior to the end of the relevant assessment year
- Completion of the assessment
Revised Return
- Can be filed under Section 139(5) if any omission or wrong statement is discovered in the original return
- Can be filed at any time before:
- Three months prior to the end of the relevant assessment year
- Completion of the assessment
Interest for Default in Furnishing Return of Income
- Attracted under Section 234A for failure to file return of income on or before the due date under Section 139(1)
- Interest is payable at 1% per month or part of the month from the date immediately following the due date
- Interest is to be calculated on the amount of tax on total income as determined under Section 143(1) or regular assessment
Self-Assessment
- Payment of tax, interest, and fee is required before furnishing the return of income
- Payment is to be made after taking into account:
- Advance tax paid
- Tax deducted or collected at source
- Relief of tax claimed under Section 89
- Tax credit claimed to be set-off in accordance with Section 115JD
Updated Return of Income
- Can be filed under Section 139(8A) at any time within 24 months from the end of the relevant assessment year
- Not applicable if:
- The updated return is a loss return
- The updated return has the effect of decreasing the total tax liability
- The updated return results in a refund or increases the refund due
- Can be filed if the original return is a loss return and the updated return is a return of income### Tax on Updated Return [Section 140B]
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Payment of tax, additional tax, interest, and fee before furnishing updated return of income
- In case no return is furnished earlier (Section 140B(1)):
- Tax to be paid along with interest and fee before furnishing updated return
- The updated return shall be accompanied by proof of payment of such tax, additional income-tax, interest, and fee
- In case a return is furnished earlier (Section 140B(2)):
- Tax to be paid along with interest before furnishing updated return
- The updated return shall be accompanied by proof of payment of such tax, additional income-tax, and interest
- In case no return is furnished earlier (Section 140B(1)):
Manner of computation of tax payable on the basis of updated return
- In case no return is furnished earlier (Section 140B(1)):
- Tax payable is to be computed after taking into account:
- The amount of tax, if any, already paid as advance tax
- The tax deducted or collected at source
- Any relief of tax claimed under Section 89
- Any tax credit claimed to set-off in accordance with Section 115JD
- Tax payable is to be computed after taking into account:
- In case a return is furnished earlier (Section 140B(2)):
- Tax payable is to be computed after taking into account:
- The amount of relief or tax referred to in Section 140A(1), the credit for which has been taken in the earlier return
- The tax deducted or collected at source on any income which is subject to such deduction or collection
- Any tax credit claimed to set-off in accordance with Section 115JD
- Tax payable is to be computed after taking into account:
Interest under Section 234A, 234B, and 234C
- In case no return is furnished earlier (Section 140B(1)):
- Interest payable under Section 234A has to be computed on the amount of tax on the total income as declared in the updated return
- In case a return is furnished earlier (Section 140B(2)):
- Interest payable under Section 234B has to be computed on the assessed tax
- Interest payable under Section 234C has to be computed after taking into account the total income furnished in the updated return
Additional income-tax payable at the time of updated return [Section 140B(3)]
- The additional income-tax payable at the time of furnishing the updated return under Section 139(8A) would be:
- 25% of the aggregate of tax and interest payable if the return is furnished after the expiry of the time available under Section 139(4) or 139(5) and before the completion of the period of 12 months from the end of the relevant assessment year
- 50% of the aggregate of tax and interest payable if the return is furnished after the expiry of 12 months from the end of the relevant assessment year
Defective Return [Section 139(9)]
- The Assessing Officer has the power to call upon the assessee to rectify a defective return
- A return of income would be regarded as defective unless:
- The annexures, statements, and columns have been duly filled in
- The return is accompanied by proof of payment of taxes
Fee for Default in Furnishing Return of Income [Section 234F]
- A person who fails to furnish a return of income under Section 139 within the prescribed time limit 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 fee payable shall not exceed1,000
Permanent Account Number (PAN) [Section 139A]
- The following persons are required to apply for a PAN:
- Every person who has not been allotted a PAN and intends to enter into certain transactions
- Every person who is required to furnish a return of income under Section 139
- The Assessing Officer shall allot a PAN to the person within the prescribed time
- Quoting of PAN is mandatory in all documents pertaining to certain prescribed transactions
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Description
This quiz covers the basics of income tax returns in India, including the purpose, compulsory filing, exemption limit, and due dates. Test your knowledge of income tax return filing in India.
