Amit Kumar

9891463160, 9891026051

Assessment Procedure
Return of Income Submission of Return of Income [Sec.-139(1)] Every person (a) being a company or a firm, or (b) being a person other than company or a firm, if (i) his total income or (ii) the total income of any other person in respect of which he is assessable under the Income tax Act, during the previous year [without giving effect to the provision of sec10A, 10B, 10BA or sec80] exceeds the maximum amount which is not chargeable to income tax.

Shall file a return of income On or before the due date In the prescribed form Verified in the prescribed manner and Setting forth such other particulars as may be prescribed.

Due date of furnishing return of income Assessee 1. In case of a person being: (a) Company; (b) a person whose accounts are required to be audited under this Act or under any other law; (c ) working partner of a firm whose accounts are so required to be audited; and (d) a person who is required to furnish a return on the basis of 1/6th economic criteria In the case of any other assessee 31st October of relevant assessment year. Due date

2.

31st July of relevant assessment year.

Notes: 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.

Amit Kumar

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2.

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 nonworking) shall be 31st July of the assessment year.

New Scheme to facilitate submission of returns through Tax return preparers [Sec.-139B]

Returns of loss [Sec.-139(3)] If a person has sustained a loss u/h PGBP or Capital Gain And claims that such loss or any party thereof Should he may furnish a return of loss Within the time prescribed u/s 139(1) and All the provisions of this Act shall apply as if it were a return u/s 139(1). Section 80 in the chapter on Set off and Carry forward of losses, losses can not be carried forward unless return of loss is submitted on or before due date mentioned u/s 139(1) and it is duly assessed. Notes: 1. Losses u/h House Property and unabsorbed depreciation can be claimed even return is filled after the due date. 2. Losses can be set off even return is filed after due date. It only prohibits the carry forward of such losses. 3. Although the loss of current year can not be carried forward unless a return of loss is submitted before the due date but the loss of earlier years can be carried forward if the return of loss of that year(s) was submitted within the due date and such loss has been assessed.

Belated Return [Sec.-139(4)] If an assessee has not submitted his return of income: (a) on or before due date maintained u/s 139(1) or (b) within the time allowed under a notice u/s 142(1). He can still file the return of income Such return is called Belated Return.
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Amit Kumar

9891463160, 9891026051

Belated Return can be filed at any time (a) before the expiry of one year from end of relevant previous year or (b) before the completion of Assessment. Whichever is earlier. Return of income of charitable trust and institutions [Sec.-139(4A)] Required to file a return if following incomes (before exemption u/s 11 and 12) exceeds the maximum amount not chargeable to tax (i) income from property under trust (ii) voluntary contributions The return is to be filled within due date u/s 139(1) by the representative of the trust and such return shall be deemed to have been filed u/s 139(1).

Return of income of political party [Sec.-139(4B)] If total income (before exemption u/s 13A) Exceeds the maximum amount not chargeable to tax, Chief executive officer shall file the return on or before due date u/s 139(1) and Such return shall be deemed to have been filed u/s 139(1).

Return of income of certain associations and institutions [Sec.-139(4C)] if the total income of any scientific research association, news agency, association or institution having as its object the control, regulation or encouragement of the profession of law, medicine, accountancy or other specified profession or university or other educational institution or any hospital or other medical institution or trade union, Note: Educational and medical institutions other than those substantially financed by the Government are required to furnish return of income, whether its gross receipts are less than or more than Rs.1crore. before claiming exemption under section 10, exceeds the maximum amount not chargeable to income tax,

Shall furnish a return of such income and it shall be treated as if it were a return to be furnished u/s (1).

Mandatory to file return of income/loss [Sec.-139 (4D)]:

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Amit Kumar

9891463160, 9891026051

Every university, college or other institution referred to in clause (ii) and clause (iii) of sub-section (1) of section 35 i.e. institutions accepting donations for scientific research or social or statistical research, which is not required to furnish return of income or loss under any other provision of this section, shall furnish the return in respect of its income or loss in every previous year and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished under section 139(1).

Revised Return [Sec.-139(5)] If an assessee, after furnishing the return of income (a) u/s 139(1) or (b) in pursuance of a notice u/s 142(1), discovers any omission or any wrong statement in the return filed he may furnish a revised return.

Revised return can be filed any time (a) before the expiry of one year from the end of relevant assessment year or (b) before the completion of Assessment. Whichever is earlier. Note: 1. In the case of Kumar Jagdish Chandra Sinha SC held that Belated Return filed u/s 139(4) can not be revised. 2. time. 3. 4. Revised return can be further revised provided it is revised within same prescribed Revised return substitutes the original return An application or letter to the Assessing Officer can not constitute revised return.

Particulars to be furnished with the return [Sec.-139(6)/ 139(6A)] (a) Particulars required to be furnished u/s 139(6) 1. Income exempt from tax. 2. Assets of the prescribed nature, value and belonging to the assessee. 3. His bank account and credit card held by him. 4. Expenditure exceeding the prescribed limits incurred by him under the prescribed heads. 5. Such other out going as may be prescribed.

Amit Kumar (b)

9891463160, 9891026051

Particulars to be furnished in case of an assessee engaged in any business or profession [Sec.-139(6A)] 1. The report of audit referred to in section 44AB )if it is already furnished, a copy thereof with a proof of furnishing the same); 2. The particulars of location and style of the principal place where he carries on the business or profession; and all branches thereof; 3. Names and addresses of his partners if any in such business or profession; 4. If assessee is a member of an association or body of individuals, the names of other members; 5. The extent of assessees share and of other partners/ members of the profits of the business or of the branches.

Defective Return [Sec.-139(9)] Where the Assessing Officer considers that return of income furnished by assessee is defective, he may intimate the defect to the Assessee and give him an opportunity to rectify the defect within 15 days from the date of such intimate such time may be extended by A.O. on an application by the assessee if the defect is not rectified within time allowed the return filed shall be treated as invalid return

if the assessee rectifies the defect even after 15 days or extended time, but before the completion of assessment, the A.O. may condone the delay and treat the return as valid return. When a return of income shall be regarded as defective A return of income shall be regarded as defective unless all the following conditions are satisfied: (i) A return in the prescribed form with all annexure, columms and statements duly filled in. (ii) (iii) A statement showing computation of tax payable. Proofs of tax, if any, claimed to have been deducted or collected at source before 1st day of April, 2008 and the advance tax and self-assessment tax, if any, claimed to have been paid. Provided that where return is not accompanied by proof of tax, if any, claimed to have been deducted or collected at source, the return of income shall not be regarded as defective if
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Amit Kumar

9891463160, 9891026051

(a) (b) (iv) (v)

a certificate for tax deducted or collected was not furnished u/s 203 or sec.206 to the person furnishing his return of income; and such certificate is provided within a period of two years specified under sub-section (14) of section 155.

Report of audit u/s 44AB or where the report has been furnished prior to the furnishing of the return, a copy of such report together with the proof of furnishing of the report. In a case where regular books of accounts are maintained by the assessee, then copies of: (a) Manufacturing Account, Trading Account, Profit & Loss Account or Income & Expenditure Account and Balance Sheet. (b) (c) (d) (e) (f) In case of a partnership firm, the personal accounts of the members. In case of AOP/BOI, the personal accounts of the members. In case of a proprietary concern, the personal account of the proprietor. In case of a partner of a firm, his personal account in the firm. In case of a member of AOP/BOI, his personal account in the AOP/BOI.

(vi) (vii) (viii)

Where the accounts of the assessee have been audited, then copies of audited profit & loss account, balance sheet and the auditors report. In a case where cost-audit u/s 233B of the Companies Act has been conducted, then the copy of such cost audit report. Where regular books of accounts are not maintained by the assessee, then a statement showing the amount of turnover, gross receipts, gross profits, expenses and net profit of the business or profession carried on by the assessee and the basis on which such amounts have been computed and also disclosing the amount of total Sundry Debtors, Sundry Creditors, Stock-inhand, cash and bank balances at the end of the year.

PAN [Sec.-139A] In the following cases an application for allotment of PAN has to be made (i) If return is to be filled u/s 139 (4A) (ii) If total sales or gross receipts are more than Rs.5 lacs in any previous year.

(iii) If the total income of any person during any previous year exceeded maximum amount not chargeable to tax. (iv) Being an employer, who is required to furnish a return of fringe benefits. However any other person may also apply for allotment of PAN. In case of (i) and (ii) above application has to be made on or before the end of accounting year.

Amit Kumar

9891463160, 9891026051

While in case of (iii) application for allotment of PAN has to be made on or before 31st May of the A/Y relevant year to the previous year whose income exceeded the exemption limit. Every person who has been allotted PAN shall quote it. 1. In all returns, challans and correspondence with income-tax authority 2. 3. 4. Sale/ purchase of Motor vehicle other than two wheeler Sale/ purcahse of any immovable property for Rs.5 lacs or more Application for telephone connection including cellular connection

5. Payment in cash in connection with foreign travel excluding travel to neighboring countries or specified places of pilgrimage at any one time of exceeding Rs.25, 000. 6. 7. 8. 9. Payment to hotels, restaurant bills exceeding Rs.25, 000 at any time. Opening a Bank account. Time deposits with a bank or post office saving bank account exceeding Rs.50, 000. Deposit in cash with a bank aggregating Rs.50, 000 or more during any one day.

10. Payment in cash for purchase of bank draft or pay orders aggregating Rs.50, 000 or more during any one-day. 11. Contract for sale/ purchase of securities exceeding Rs.1 lakh. Any person who has not been allotted PAN or GIR no. shall make a declaration in Form 60. Self-Assessment [Sec.-140A] Every person, before submitting a return of income Is under an obligation to make a self-assessment of his income and After taking in account the amount of tax, if any, already paid, pay the self-assessment tax, if due. The assessee shall be liable to pay such tax together with interest payable for any in furnishing the return or any default or delay in payment of Advance tax. Self-assessment of income returned: (i) Compute the total income (ii) (iii) Compute the tax payable on it according to rates in force Allow rebate, if any, u/s 88E

Amit Kumar

9891463160, 9891026051

(iv) (v) (vi) (vii) (viii)

Add surcharge if applicable Allow relief, if any, u/s 89(1), 90 and 91 To the balance tax payable, add education cess @ 2% From the tax payable, calculated under step (vi), deduct TDS/Advance tax. Add interest payable (a) u/s 234A (b) u/s 234B (c) u/s 234C

(ix) The above tax and interest payable should be paid as selfassessment tax before filing the return of income. Return by whom to be signed [Sec.-140] S. NO. Assessee 1.
Individual

2.

When absent from India; mentally incapacitated; for any other reason he is not able to sign HUF Where karta is absent from India or is mentally incapacitated Company Where M.D. is unable to sign or where there is no M.D. When company is not resident in India When the company is in liquidation When the companys management is taken over by the government

Signatory Himself His guardian or any other person competent to act on his behalf duly authorised by him. Karta Any other adult member of the family. Managing Director Any other director; Any person who holds a valid power of Attorney from the company The liquidator The principal officer

3.

4. 5. 6. 7. 8.

Partnership firm Local authority Political party Association of person Any other person

Managing partner or any other partner not being a minor Principal officer Chief executive officer Any member or principal officer That person or some other person who is competent to sign.