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When Return of Income is to be Filed as Statutory Obligation [Section-139(1)]

Return of Income is a statement of total income and tax liability filled in the prescribed from duly signed and filed with the Income Tax Authority on or before the due date of furnishing of Return. The Act stipulates an obligation on the assessee that he files Return regularly in every assessment year to the department disclosing the income earned by him.

Taxpayer

Minimum income to attract the provision of filling Return of Income

Company or Firm [ Sec. 139(1) ]

Any Income or Loss

A person other than a company or firm

Compulsory Return if taxable income ( plus deductions u/s 10A, 10B, 10BA and Sec. 80C to 80U ) exceeds the exemption limit.

A person in respect of income derived from property held under a Trust for Charitable or Religious purposes [ Sec. 139 (4A)]

IF the income ( without giving exemption u/s 11 to 12) exceeds the amount not chargeable to tax.

Chief Executive Officer of every political party [Sec. 139(4B)]

If the income ( without giving exemption u/s 13A) exceeds the maximum amount not chargeable to tax.

Scientific Research Association, News Agency, Association / Institute for control or supervision of a profession, institution for development of Khadi and Village Industries, Fund/Institution refereed to , Educational / Medical Institution, Trade Union etc.

If the income ( without giving exemption u/s 10) exceeds the amount not chargeable to tax.

University / Educational Institution existing solely for educational purpose and not for the purpose of Profit if the aggregate annual receipt does not exceed Rs. 1 crore

If the income ( without giving exemption u/s 10) exceeds the exemption limit.

Hospital / other institution existing solely for Medical Purpose and not for the purpose of Profit if the aggregate annual receipt does not exceed Rs. 1 crore.

If the income ( without giving exemption u/s 10) exceeds the exemption limit.

Any University / College / Other Institution

Any Income or Loss ( return has to be submitted whether there is income or loss. Such Return has to be submitted even if it is not required by any other provision)

This provision applies to all persons whether they are Resident or Non-Resident.

Due date of Furnishing Return of Income:

The return of income must be filed in a prescribed form/specified computer readable media and verified in the prescribed manner, on or before the due date mentioned in Explanation 2 to section 139(1), which is as under:

(a) where the assessee (other than an assessee referred to in clause (b) below) is—

(i) a company; or

(ii) a person (other than a company) whose accounts are required to be audited under this Act or under any other law for the time being in force;

or

(iii) a working partner of a firm whose accounts are required to be audited under this Act or under any other law for the time being in force,

30th September of the Assessment year.

(b) in the case of an assessee who is required to furnish a report referred to in section 92E (i.e. where a person has entered into an international transaction or specified domestic transaction aggregating to an amount exceeding Rs. 5 crore/ 20 crore as the case may be)

30th November of the Assessment year.

(c) in case of any other assessee,

31st. July of the Assessment year.

1. Due date of furnishing return of income in case of a non-working partner shall be 31st July of the assessment year whether the accounts of the firm are required to be audited or not.

2. A working partner for the above purpose shall mean an individual who is actively engaged in conducting the affairs of the business or profession of the firm of which he is a partner and is drawing remuneration from the firm.

3. In case of firm whose accounts are not required to be audited under this Act or any other law, the last date for furnishing the return by the firm as well as partners (whether working or non-working) shall be 31st July of the assessment year.

Interest for default in Furnishing Return of Income under Section 139(1) or (4) or in response to a Notice Under Section 142(1) [Section 234A(1)] :

The assessee is liable to pay interest in the following cases:

  1. where the return of income is furnished after the due date specified under section 139(1); or
  2. where the return of income is not furnished by the assessee.

Rate of Interest : Simple interest calculated @1% p.m. or part of the month.

 

Amount of Fee payable for Late Filing of Return of Income [Section 234F(1)]:

Without prejudice to the provisions of this Act, where a person required to furnish a return of income under section 139, fails to do so within the time prescribed in section 139(1), he shall pay, by way of fee, a sum of,—

  1. Rs. 5,000, if the return is furnished on or before the 31st day of December of the assessment year;
  2. Rs. 10,000 in any other case:

However, the total income of the person does not exceed Rs. 5,00,000, the fee payable under this section shall not exceed Rs. 1,000.

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