Obligation to file Return of Income

* w.e.f. A.Y. 2015-16
# w.e.f. A.Y. 2016-17

Maximum amount not chargeable to tax for A.Y. 2015-16

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 u/s 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 following conditions:
   1. Taxable income consists of salary and/or saving bank interest not exceeding ₹ 10,000
   2. Salary is received from only one employer
   3. Individual has reported to his employer PAN and also saving bank interest and tax has been deducted at source by employer
   4. Salary certificate in Form 16 has been issued by the employer mentioning PAN, details of income, tax deducted at source and such tax deposited
   5. Such individual has no claim for refund of taxes

Due Dates for filing Return of Income for A.Y. 2015-16

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

^ 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 verified in prescribed manner.

Forms for Return of Income

Mode of filing of return of income

Return of income can be filed

• Physically in a paper form
• Furnishing the return electronically under digital signature
• Transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V
• Furnishing a bar-coded return in a paper form.

Return of income mandatorily required to be filed electronically signed / verified under digital signature (w.e.f. 1-10-2014 return of income need not be signed)

1. An individual, Firm, HUF to whom tax audit u/s 44AB is applicable (ITR 4, ITR 5)
2. Any company (ITR 6)
3. Persons including companies required to furnish return under section 139(4B)(ITR 7) (w.e..f. A.Y. 2014-15).

Transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V

1. An Individual resident having assets including interest in any entity located outside India or signing authority in any account located outside India (ITR 2, ITR 3, ITR 4)
2. An individual or a Hindu undivided family, has total income exceeding ₹ 5,00,000 (ITR 1, ITR 2, ITR 3, ITR 4).
   In case of representative assessee of non-residents and in case of private discretionary trusts, relaxation from compulsory filing of e-filing of return has been granted (Cir. 6/2012, dt. 3-8-2012)
3. A person claiming any relief of tax u/s. 90 or 90A or deduction u/s. 91 of the Act is required to mandatorily file the Income Tax Return (w.e.f. A.Y. 2013-14).
   But at the option of the assessee return can be signed digitally.
4. A person other than a firm required to furnish return in form ITR 5 (w.e.f. A.Y. 2014-15). But at the option of the assessee return can be digitally signed.
5. Persons including companies required to furnish return under section 139(4A) or section 139(4C) or section 139(4D) (ITR 7).But at the option of assessee all return of income can be furnished electronically under digital signature or in the paper form.

Peculiarities of new returns

1. Each year new returns applicable are notified
2. New Forms are attachment less. Return (other than ITR 7) 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, form need to be printed on durable paper with pre-specified coloured ink and other specifications.
4. Audit Report u/ss. 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 u/s 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 u/s 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 (sign in blue ink) 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. The period of 120 days was extended for A.Ys. 2010-11, 2011-12 & 2012-13.
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 dt.. 21-5-2009).

*For the A.Y. 2014-15, the due date of furnishing of audit report for assessees liable for tax audit u/s 44AB (Other than those are also liable for Transfer Pricing audit) has been extended up to 30th November, 2014 vide Circular No.133/24/2014 dated 20-8-2014.

Additional requirements for the return of income applicable w.e.f. A.Y. 2015-16

Few of the new forms for the A.Y. 2015-16 were introduced seeking plethora of information. Considering the objections raised these forms were withdrawn and new forms are yet to be notified.

Return of income claiming certain deductions or certain loss

1. Return furnished after due date, the deductions / benefits may not be available—
   1. Deductions u/ss. 10A, 10B, 80-IA, 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. 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.
2. Where any loss has been duly carried forward in accordance with the provisions of sec. 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 dt. 16-5-2001.

Belated Return

1. Return can be filed belatedly within one year from the end of assessment year on or before completion of assessment, whichever is earlier. The due date for filing return for A.Y. 2015-16, belatedly is 31st March, 2017. However in case, return is not filed within the end of assessment year penalty u/s. 271F of ₹ 5,000 may be imposed. E.g. return of income for A.Y. 2015-16 if not filed on or before 31-3-2016 penalty u/s. 271F may be levied.
2. 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 u/s 11 is below maximum amount not chargeable to tax or 30th September accounts are subject to audit), penalty of ₹ 100/- per day may be imposed u/s 272A(2)(e).
3. Belated return cannot be revised and such return may attract interest u/s 234A in case self-assessment tax is outstanding as on due date of filing of return of income. However no interest u/s. 234A is chargeable on the amount of self-assessment tax paid before due date of filing return of income .

Revised Return

1. Return can be revised within one year from the end of the assessment year or before completion of assessment, whichever is earlier.
2. Return can be revised on discovery of any omission or any wrong statement.
3. Belated Return cannot be revised.
4. The revised return filed prevails over the original return, which is taken to have been withdrawn after the filing of the revised return.

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 filed without payment of tax along with interest will be considered as defective 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.