Assessment procedures part i
- 1. Course : CA Final Assessment procedures under Income Tax Act, 1961 - Contents For many more such videos join us at www.caguru.in
- 2. Obligation to file return of Income Course : CA Final – Section 139(1) Mandatory It is mandatory for the following person to file a return of there income : - filing of return – Where the person is a Company or a firm; and – For a person other than company or firm, it is mandatory, only when : - of income • Either there own total income ; or • Total income of any other person in respect of which they are assessable exceeds maximum amount which is not chargeable to income-tax in respect of that category of person – Trust – Political Party – Research organization – University educational – Hospital – University Other points Return shall be filed on or before the due date, in the prescribed form and verified in the prescribed manner Entities Individual or a Hindu undivided family or an association of persons or a body of individuals, claiming whether incorporated or not, or an artificial juridical person – Where total income before giving effect to Section 10A or section 10 B or section 10 BA or Chapter Vl-A exceeded the maximum benefit of amount which is not chargeable to income-tax, shall also be under an obligation to file ROI Section 10A etc. Agricultural Where agricultural income of an individual / HUF is less than exemption limit, he is not under an income obligation to file his return of income. For many more such videos join us at www.caguru.in
- 3. Obligation to file return Course : CA Final of Income Person other than Others - Refer Company or Firm company or firm subsequent slides • Mandatory • For a person other • Trust irrespective of level of than company or • Political Party income firm, it is mandatory, • Research • Newly incorporated only when : - organization Company • Either there own • University • Foreign company/firm total income ; or educational operating in India • Total income of • Hospital • Company/firm, even if any other person there income is exempt in respect of which • University • Company is in the they are process of setting up assessable there business exceeds maximum • Loss making companies amount which is • Defunct not chargeable to companies/firms income-tax in respect of that category of person For many more such videos join us at www.caguru.in
- 4. Mandatory Filing of Course : CA Final Electronic Report Company or Other Firm • Company • Optional for • Firm liable to them to file tax audit u/s electronic 44AB return Where ROI is digitally signed, taxpayer is not required to file Form ITR V with IT Department post transmission of data For many more such videos join us at www.caguru.in
- 5. Due Date of Return of Income Course : CA Final Due date for the purpose of filing ROI for various category of assessee is as under :- ‘Company’, ‘Person other than a company ’ whose accounts 30th September of the are required to be audited assessment year under Income Tax Act or any other law Working partner in a firm whose accounts are required to be audited under Income Tax Act or any other law For many more such videos join us at www.caguru.in Any other assessee 31st July of the
- 6. Return of Loss – Section 139(3) Course : CA Final 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 For many more such videos join us at www.caguru.in 6
- 7. Belated Return – Section 139(4)Course : CA Final ● 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 year provided 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 For many more such videos join us at www.caguru.in 7
- 8. Revised Return – Section 139(5) Course : CA Final If any person, ● having furnished a return u/s 139(1) or return filed in pursuance of a notice issued under sub-section (1) of section 142, ● discovers any omission or any wrong statement therein, ● he may furnish a revised return ● before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier Notes ● Belated return cannot be revised –Kumar Jagdish Chandra 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 permissible For many more such videos join us at www.caguru.in 8