Return of Income

Obligation to file Return of Income

* 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

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

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 be verified in prescribed manner.

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

* 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

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.