GEARING
UP FOR INCOME TAX RETURNS FILING
Taxes are the
biggest source of revenue of government of India, for its day to day expenses
and social welfare measures. Normally tax collections are divided in Direct Tax
and Indirect Tax category. Income Tax comes under the Direct Taxes group and this
is biggest source of revenue under this
category. Direct Tax Collections have increased from Rs. 68,305 Cr. in the year
2000-2001 to Rs. 7,42,295 Cr. in the
year 2015-2016.
Once again,
season of Income Tax Return filing has arrived. So, as a preparatory measure,
some relevant points are discussed hereunder.
DIFFERENT
HEADS UNDER WHICH INCOME IS COMPUTED
There are five
heads under which income is computed for taxation purposes;
1. Income from salary,
2. Income from house
property,
3. Profits and gains of
business or profession,
4. Capital gains and
5. Income from other
sources
FILING
OF INCOME TAX RETURN
Section
139 of the Income Tax provides that;
139.
[(1) Every person,—
(a)
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being
a company or a firm; or
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(b)
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being
a person other than a company or a firm, if his total income or the total
income of any other person in respect of which he is assessable under this
Act during the previous year exceeded the maximum amount which is not
chargeable to income-tax,
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shall,
on or before the due date, furnish a return of his income or the income of such
other person during the previous year, in the prescribed form and verified in
the prescribed manner and setting forth such other particulars as may be
prescribed.
It
further provides that a person, being a resident other than not ordinarily
resident in India, who is not required to furnish a return under this
sub-section and who at any time during the previous year,—
(a)
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holds,
as a beneficial owner or otherwise, any asset (including any financial
interest in any entity) located outside India or has signing authority in any
account located outside India; or
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(b)
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is
a beneficiary of any asset (including any financial interest in any entity)
located outside India,
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shall
furnish, on or before the due date, a return in respect of his income or loss
for the previous year in such form and verified in such manner and setting
forth such other particulars as may be prescribed.
TIME LIMIT FOR FILING
INCOME TAX RETURN
S. No.
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Type of Assessee
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Time Limit
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1.
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Company
or a person whose accounts are required to be audited or a working partner of
a firm whose accounts are required to be audited
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30th
September
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2.
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30th
November
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3.
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In case of any other assessee
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31st
July
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FILING OF BELATED
RETURN
Section
139 (4) further provides that “Any person who has not furnished a return within
the time allowed to him under sub-section (1), or within the time allowed under
a notice issued under sub-section (1) of section 142,
may furnish the return for any previous year at any time before the expiry of
one year from the end of the relevant assessment year or before the completion
of the assessment, whichever is earlier.
The
following sub-section (4) shall be substituted for the existing sub-section (4)
of section 139 by the Finance Act, 2016, w.e.f. 1-4-2017 :
(4)
Any person who has not furnished a return within the time allowed to him under
sub-section (1), may furnish the return for any previous year at any time
before the end of the relevant assessment year or before the completion of the
assessment, whichever is earlier.
REVISION OF INCOME TAX
RETURN
Sub-section
(5) of Section 139 provides that “ If any person, having furnished a return
under sub-section (1), or 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 at any time before the expiry of one year from the end of the relevant
assessment year or before the completion of the assessment, whichever is
earlier.
The
following sub-section (5) shall be substituted for the existing sub-section (5)
of section 139 by the Finance Act, 2016, w.e.f. 1-4-2017 :
(5)
If any person, having furnished a return under sub-section (1) or sub-section
(4), discovers any omission or any wrong statement therein, he may furnish a
revised return at any time before the expiry of one year from the end of the
relevant assessment year or before the completion of the assessment, whichever
is earlier.
DEFECTS IN INCOME TAX
RETURN
As
per sub-section (9) of Section 139, Where the Assessing Officer considers that
the return of income furnished by the assessee is defective, he may intimate
the defect to the assessee and give him an opportunity to rectify the defect
within a period of fifteen days from the date of such intimation or within such
further period which, on an application made in this behalf, the Assessing
Officer may, in his discretion, allow; and if the defect is not rectified
within the said period of fifteen days or, as the case may be, the further
period so allowed, then, notwithstanding anything contained in any other
provision of this Act, the return shall be treated as an invalid return and the
provisions of this Act shall apply as if the assessee had failed to furnish the
return :
Provided
that where the assessee rectifies the defect after the expiry of the said
period of fifteen days or the further period allowed, but before the assessment
is made, the Assessing Officer may condone the delay and treat the return as a
valid return.
INCOME TAX RETURN FORMS
S. No.
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Type of Income Tax Return Form
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Assessees for whom applicable
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1.
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ITR
1
(SAHAJ)
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For
Individuals having Income from Salary & Interest
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2.
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ITR
2
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For
Individuals & HUFs not having Income from Business or Profession
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3.
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ITR
2A
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For
Individuals & HUFs not having Income from Business or Profession and
Capital Gains and who do not hold foreign assets
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4.
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ITR
3
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For
Individuals/HUFs being partners in firms and not carrying out
business
or profession under any proprietorship
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5.
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ITR
4
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For
Individuals & HUFs having income from a proprietory business or Profession
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6.
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ITR
4S
(SUGAM)
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For
Individuals/HUF/Partnership Firm having income from presumptive Business
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7.
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ITR
5
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For
persons other than, (i) individual, (ii) HUF, (iii) company and (iv) person
filing ITR7
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8.
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ITR
6
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For
Companies other than companies claiming exemption under section 11
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9.
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ITR
7
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For
persons including companies required to furnish return under
sections
139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F)
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DOCUMENTS REQUIRED FOR
FILING INCOME TAX RETURN
1. A
copy of last year's income tax return,
2. Form
16 for salaried assesses and Form 16A for others,
3. Bank
Statements along with Bank Account No. and IFSC Codes,
4. Aadhar,
5. Mobile
No. and Email ID,
6. Savings
certificates/Deductions,
7. Balance
Sheet, P&L Account Statement and other Audit Reports wherever applicable,
8. Other
relevant documents.
WAYS OF FILING INCOME TAX RETURN
There
are different kinds of professionals present to assist filing Income Tax Return,
such as;
1. By
the assesse himself,
2. Chartered
Accountants,
3. Income
Tax Return Preparers,
4. Advocates
and other professionals practicing in taxation,
5. Website
of various private vendors etc.
FEES FOR FILING INCOME
TAX RETURN
Normally
fee for filing Income Tax Return depends upon data and complexity of the
particular case. Income Tax Department has provided all forms on their website
which may be used for the purpose. An assessee can prepare and file return
himself if he so desires or take help of tax professionals. While fees of
Chartered Accountants and other professionals are subject to personal
negotiations there are Income Tax Return Preparers (TRPs) available, whose fees
may be determined by the Government and they may be incentivized on the basis
of tax collections, by the Government itself. TRPs are supervised by the
Government. However, The Committee for capacity building of CA Firms and small
& medium practitioners of the Institute of Chartered Accountants of India
has also published a minimum recommended scale of fees for Chartered
Accountants which may also be followed.
So,
gear up and file your income tax return without waiting for the last day as
events during that time might force you to miss the deadline.
Author:
CA. Brijesh Baranwal
The
Author is a Practicing Chartered Accountant and based in Andheri (West), Mumbai. In
case of queries and suggestions, please contact: cabrijesh@yahoo.co.in
Disclaimer-
This write up is only for awareness purpose and facts of particular case may require independent professional opinion.