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Return of Income

Obligation to file Return of Income

Sr. No. Assessee Conditions
1. Firm (including LLP) Every Firm irrespective of earning income or incurring loss
2. Company Every Company irrespective of earning income or incurring loss
3. Assessee other than Company or Firm If his or its total income during the previous year exceeds maximum amount not chargeable to tax (see note below for Maximum Amount not chargeable to tax for A.Y. 2017-2018), without considering deduction under section. 10(38) [from AY 2017-18] 10A, 10B, 10BA, and Chapter IV-A
4. Charitable or religious trust If the total income in the previous year exceeds the maximum amount not chargeable to tax without giving effect to section 11 and section 12
5.
  • Research Association under section 10(21)
  • News Agency under section 10(22B)
  • Association / Institution referred under sections. 10(23A) and 10(23B)
  • Universities/Hospitals/Medical institutions referred under various sub-clauses of Section 10(23C) i.e. (iiiad) or (iiiae) or (iv) or (v) or (vi) or (via)
  • Mutual Fund referred under section. 10(23D)*
  • Securitisation Trust referred under section. 10(23DA)*
  • Venture Capital Company or Venture Capital Fund under section. 10(23FB)*
  • Trade Union referred under sections. 10(24)(a) and 10(24)(b)
  • Board/Trust/Commission referred under section. 10(46)
  • Infrastructure Debt Fund referred under section. 10(47)
  • Fund referred under section 10(23AAA)**
  • Investor Protection Fund referred under section 10(23EC) or 10(23ED)**
  • Core Settlement Guarantee Fund referred under section 10(23EE)**
  • Board or Authority referred under section 10(29A)**
If the income exceeds maximum amount not chargeable to tax without considering exemptions under respective provisions of section 10
6. University, college or any other institution referred to under section. 35(1))(ii)/(iii) Required to furnish return of income/loss even if not required to furnish return of income under any other provisions
7. Business Trust and Investment Fund# Required to furnish return of income/loss even if not required to furnish return of income under any other provisions
8. Political Party Total income in the previous years without giving effect to section 13A exceeds the maximum amount not chargeable to income tax
9. Every person To whom notice under section. 142(1) or 148 is issued
10. Any resident person other than not ordinary resident Who has any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India

* w.e.f. A.Y. 2015-16; # w.e.f. A.Y. 2016-17; ** w.e.f 1-4-2018

Maximum amount not chargeable to tax for A.Y. 2017-2018

Nature of assessee Amount ()
Individual being resident in India and less than 60 years, NRI, HUF, AOP, BOI, Artificial Juridical Person 2,50,000
Individual being Senior Citizen resident in India (Completed 60 years or more but less than 80 years any time during the previous year i.e. born after 1-4-1936 and before 31-3-1956) 3,00,000
Very Senior Citizen (Completed 80 years or more any time during the previous year i.e. born before 1-4-1936) 5,00,000

No Obligation to File Return of Income

  1. No obligation is incurred on the assessee referred in sections 115A(1), 115AC(1), 115BBA or 115D to file Return under section 139(1), if he derives no other income other than those specified in the above Sections. Further, tax deductible at source should be deducted thereon from such income.
  2. The Central Government has by notification exempted individuals having income up to ₹5,00,000 from filing of return of income subject to fulfilment of conditions for AY 2012-13

Due Dates for filing Return of Income for A.Y. 2017-2018

Sr. No. Nature of Assessee Due Date
1 Every assessee who is required to furnish Transfer Pricing Audit Report under section. 92E in respect of international and specified domestic transactions 30th November
2
  1. Company other than company who is required to furnish Transfer Pricing Audit Report under 
    section 92E
  2. Every assessee who is required to get accounts audited under Income-tax Act / any other laws (other than those assessee who is required to furnish Transfer Pricing Audit Report under section 92E)
  3. Any working partner of the Firm (including working partner of LLP), where accounts of such firm are subjected to audit under any law

However, date of furnishing Tax Audit report u/s. 44AB and return of Income has been extended up to 30-11-2014 for A.Y. 2014-15 and 31st October 2015 for A.Y. 2015-16

30th September
3 Other assessee not referred above 31st July

Where the last day for filing return of income/loss is a day on which the office is closed, the assessee can file the return on the next day afterwards on which the office is open and, in such cases, the return will be considered to have been filed within the specified time limit — Circular No. 639, dated 13-11-1992.

Return of Income to be verified by

Sr. No. Nature of Assessee Return of Income to be signed^/verified by
1 Individual
  • Individual himself
  • In case individual is not within India – by himself or by any other person authorised through power of attorney
  • In case individual is mentally incapacitated from attending of his affairs – by his guardian or any person competent to act on his behalf
  • For any other reason individual is unable to sign/verify return — by any person authorised through power of attorney
2 HUF
  • Karta
  • In case Karta is not within India or is mentally incapacitated from attending the affairs – by any other adult member of such family
3 Indian resident Company
  • Managing director
  • In case managing director is not able to sign /verify for any unavoidable reasons or where there is no managing director – by any other director
  • In case company is being wound up – by Liquidator
  • In case management has been taken over by the Central or State Government – by Principal Officer of the company
4 Non-resident Company
  • By any person holding valid power of attorney from a company to sign/verify
5 Firm
  • Managing partner
  • In case managing partner is not able to sign/verify for any unavoidable reasons or where there is no managing partner – by any other partner, not being a minor
6 LLP
  • Designated Partner
  • In case designated partner is not able to sign/verify for any unavoidable reasons or where there is no designated partner – by any other partner
7 Local Authority
  • Principal Officer
8 Political Party
  • Chief Executive Officer
9 Any other Association
  • Any member of Association or the Principal Officer
10 Any other person
  • By that person or some person competent to act on his behalf

^ The condition of signing the return of income has been omitted by the Finance (No. 2) Act, 2014 and hence w.e.f. 1-10-2014, return of income only needs to be verified in prescribed manner.

Forms for Return of Income for A.Y. 2017-2018

Sr. No. ITR Forms Type of Assessee
1 SAHAJ-ITR 1 For Individual total income consisting of
  • Salaries
  • Pension
  • House property (one house property and no brought forward loss from previous year)
  • Income from other sources except winning from lottery/horse races (No loss under IFOS)
  • Not having assets (including financial interest in any entity) located outside India or signing authority in any account located outside India
  • Has not claimed any relief under section 90 and/ or under section 91
  • Not having agriculture income in excess of ₹ 5,000
  • Not having income from any source outside India
  • Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the income being clubbed falls into the above income categories.
2 ITR 2 For Individuals and HUFs not having Income from Business or Profession
3 ITR2A For Individuals and HUFs not having Income from Business or Profession and Capital Gains and who do not hold foreign asset or does not claim relief under section 90 or 91
4 ITR 3 For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship
5 SUGAM ITR 4S For individuals / HUF/Partnership Firm having income from specified business referred under 
sections 44AD/44AE (presumptive income),
  • Not having assets (including financial interest in any entity) located outside India or signing authority in any account located outside India
  • Has not claimed any relief under section 90 or 90A or has not claimed deduction under section 91.
  • Not having agriculture income in excess of ₹ 5000

In a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the income being clubbed falls into the above income categories

6 ITR 4 For individuals and HUFs having income from a proprietary business or profession (other than those specified in 4S)
7 ITR 5 For firms, AOPs, BOIs and other persons not being HUF, company or persons filing ITR 7
8 ITR 6 For companies other than companies claiming exemption under section 11

The company has to mention the Act, section and date of furnishing the audit report under any Act other than the Income-tax Act

9 ITR 7 For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4F).
10 ITR V Acknowledgement for return of income filed electronically without digital signature or in physical form

* W.e.f. A.Y. 2016-17, Individual and HUFs filing their return of income in ITR-1, ITR-2, ITR-2A, and ITR 4S having income exceeding  50 lakh will now require to furnish information regarding assets and liabilities in Schedule AL of the relevant ITR Form. It is to be noted that taxpayer holding foreign assets (legal or beneficial owner) has to report foreign assets in Schedule FA. Further for the Non-Residents and residents but not ordinarily residents, the details of assets located in India are to be mentioned in the Schedule AL. Hence Schedule AL need to capture details other than reported in Schedule FA

* W.e.f. A.Y. 2016-17 assessee required to give Pass Through Income details from business trust or investment fund as per sections 115UA and 115UB in Schedule PTI in all ITRs except ITR1. Data capture under this schedule may be used to reconcile the income reported by funds i.e. venture capital funds or real estate investment trust.

Mode of Filing of return

Person Mode of filing
  • Company
  • Political party
  • Individual /HUF, Firm, LLP or any Person filing ITR 5 whose accounts are required to be audited under sec. 44AB
  • Electronically under digital signature
  • Any other Person
  • Electronically under digital signature or
  • Transmitting the data in the return electronically under electronic verification code; or
  • Transmitting the data in the return electronically and Submitting the verification of the form in ITR V
Return of Income can be filed in paper form, in case of :
  • Individual /HUF whose return is not furnished in ITR 3 or 4
  • The person being resident not having
    1. Assets or Financial interest outside India
    2. Signing authority in any account located outside India
    3. Income from any source outside India
  • Not claimed any relief in respect of tax paid outside India under section 90 or 90A or 91
  • If taxable income under Income-tax Act, 1961 does not exceeds ₹ 5 lakh or any refund is not claimed in return

Electronic Verification Code (EVC) is a 10 digit alphanumeric code which can be generated through e-filing portal and is valid for 72 hours. Following are the modes to E-verify Return

  • EVC received in Registered Mobile number and e-mail. This option would be available for taxpayer whose Total income is Less than 5 lakh and there is no Refund.
  • Aadhaar OTP i.e. Mobile number registered with Aadhaar card is linked and OTP is sent to that Mobile number and e-mail ID
  • Login to e-Filing through Net Banking facility
  • Download the ITR-V, sign it manually and send it to CPC through post within the time limit of 120 days from date of upload for your return to be treated as a valid return

From May 22, 2016 Electronic Verification Code (EVC) can be generated by pre-validating your bank account on the e-Filing website. All major banks have launched this facility which will facilitate its customers, who may not have a net-banking account, to e-verify their return.

Peculiarities of new returns

  1. Each year new returns applicable are notified
  2. New Forms are attachment less. Return is not required to be accompanied with any documents viz. computation of income, financial statements, TDS Certificates, tax challans or audit reports (other than TP Report). However subsequently the Assessing Officer may call for such documents.
  3. SAHAJ ITR 1 and SUGAM ITR 4S are introduced for faster and error free digitisation. These forms are coloured and contains standard machine readable features like specific marks, bar code, etc. In case pre-printed form is not used, forms need to be printed on durable paper with pre-specified coloured ink and other specifications.
  4. Audit Report under section 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via), 10A, 10AA, 12A(1)(b), 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA or 115VW or notice under section 11(2)(a) need to be furnished electronically before the due date of filing the Income Tax Return (w.e.f. A.Y. 2014-15)
  5. Audit Report under section. 44AB, 92E or 115JB need to be furnished electronically before the due date of filing the Income Tax Return (w.e.f. A.Y. 2013-14).
  6. In case, return is transmitted electronically without digital signature, signed copy of acknowledgement generated online i.e. Form ITR-V is required to be submitted, within the specified period (currently 4 months), by ordinary/speed post to ITO, Bengaluru, (without any annexure, covering letter, etc.) or such other place as specified on acknowledgement.
  7. No disallowances of pre-paid taxes shall be made by AO merely because TDS/TCS certificates or pre-paid challans not submitted along with return of Income. (Circular 3/2008 dated 21-5-2009).

Return of income claiming certain deductions or certain loss

  1. Return furnished after due date, the deductions / benefits may not be available—
    1. Deductions under section 10A, 10B, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID or 80-IE
    2. Allowability of losses incurred under business (other than unabsorbed depreciation), capital gains and/or from owning and maintaining race horses. However, Carry forward of losses under the head House property and unabsorbed depreciation is not affected even if the return is not filed within due date.
    3. Losses of specified business (Sec 35AD) and Speculation Business.
  2. Where any loss has been duly carried forward in accordance with the provisions of section 139(3) in earlier years, there is no obligation to file the intermediary return in which the benefit of set off is claimed or loss is required to be carried forward, to be filed within the due date.
  3. Section 119(2)(b) empowers the CBDT to authorise any Income Tax Authority to admit an application or claim for any exemption, deduction, refund or any other relief under the Act after the expiry of the period specified under the Act, to avoid genuine hardship in any case or class of cases. The claim for carry forward of loss in case of a loss return is relatable to a claim arising under the category of any other relief available under the Act. Refer Cir. No. 8/2001 
    dated 16-5-2001.

Belated Return

  • Return can be filed belatedly within one year from the end of assessment year or before completion of assessment whichever is earlier for A.Y. 2016-17
  • Return can be filed belatedly before the end of the relevant assessment year or before completion of assessment, whichever is earlier w.e.f. A.Y. 2017-18
  • However in case, return is not filed within the end of assessment year penalty under section 271F of ₹5,000 may be imposed. E.g. return of income for A.Y. 2016-2017 if not filed on or before 31-3-2017 penalty under section 271F may be levied. However with reduction in period of filing belated return, applicability of penalty under section 271F has been deleted w.e.f. 1-4-2018
  • In case return, as required by section 139(4A) (Trusts) / 139(4C) (specified Trusts, Institutions, Political Parties, etc.) is not filed on or before due date (31st July in case income before claiming exemption under section 11 exceeds maximum amount not chargeable to tax or 30th September where accounts are subject to audit), penalty of ₹100/- per day may be imposed under section 272A(2)(e).

Revised Return

Up to A.Y. 2016-17

  • Return can be revised within one year from the end of assessment year or before completion of assessment whichever is earlier
  • Belated Return cannot be Revised

A.Y. 2017-18 and onwards

  • Return can be revised within one year from the end of assessment year or before completion of assessment whichever is earlier
  • Even Belated Return can be Revised

Defective return

  1. S. 139(9) lays that return of income would be defective in case not accompanied by the relevant annexure. W.e.f. 
    1-6-2013. A return which has been filed without payment of self-assessment tax along with interest shall be treated as a valid return.
  2. However annexure less return scenario, return would be treated as defective in case return is not filed completely in the manner specified in the return form.
  3. If the assessee fails to rectify the defects in the return of income within 15 days of intimation of defects by the Assessing Officer or specified period, the return will be treated as invalid return and the provisions of Income-tax Act will apply as if the assessee has failed to furnish the return.
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