ITR – Income Tax Return

Section 139 of the Income Tax Act 1961 (the Act) requires various persons (Assessees) including the following to submit or file their Income Tax Return (ITR) in paper or e-Form (as issued and prescribed for the relevant Assessment Year and Assessee) and manner, on or before the stated ‘due date’ —

  • Company or a Firm
  • Any other ‘Person‘ with a total income* (or that of any other person in respect of which he/she/it is assessable under the Act during the relevant previous year) exceeding the maximum amount not chargeable to Income Tax
  • ‘Resident’ Person (other than ‘not ordinarily resident in India’ under section 6(6) of the Act) who is otherwise not required to furnish an ITR return, but at any time during the previous year 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 is a beneficiary of any asset (including any financial interest in any entity) located outside India


ITR Forms — Assessment Year 2017-18

ITR Forms have been notified, read detailed information and get professional help to e-File

MinusTax’ Taxation, Revenue and Company law professionals provide the complete spectrum of services (including via the e-medium i.e. email, skype, whatsapp etc) which include —

  • Income Tax Planning, Advisory and Compliance Services
  • Notice Reply (read more)
  • Appeal, Writs and Legal representation (read more)
  • Legal Document, Appeal, Writ and Application Drafting
  • Penalty Notice and Prosecution Defence (read more)
  • Other Allied Services


Get Professional Help – Access Professional Services

(click the “MinusTax Professionals” red banner below and fill-up/submit the pop-up form)

Need Tax Help?


ITR Filing ‘due dates’

30 September of the relevant Assessment year for the following Assessees —

  • Company; or
  • Person (other than a Company) whose accounts are required to be audited under the Act or under any other law for the time being in force; or
  • Working partner of a Firm whose accounts are required to be audited under the Act or under any other law for the time being in force,

31 July of the relevant Assessment year for the following Assessees —

  • Individuals


ITR e-Filing and TDS/TCS Compliance

The Act requires prescribed Assessees to submit or electronically file their Income Tax Returns (ITRs) and/or TDS/TCS statements (as the case may be) via the use of the correct/applicable e-Forms and the Income Tax Department’s e-portal for e-filing the same in the required manner.

> Income Tax Department e-Filing portal

*Total Income generally comprises of the aggregate of taxable income (if any) under the various ‘heads’ of income, reduced by any ‘Set-off’ of allowed losses (under the same or other head(s), as the case may be) and/or ‘Deductions’ under Chapter VIA, in accordance with the relevant provisions of the Act.

 

ITR Issues and Compliances


Return of Loss

Any Person who has sustained a loss in any previous year under the head “Profits and Gains of Business or Profession” or under the head “Capital Gains” and claims that the loss (or any part thereof) be carried forward to ‘Set-off’ the same in accordance with the relevant provisions of the Act, as a pre-condition must file a prescribed form.


Belated Returns and Time Limit

Any Person who has not furnished an ITR within the time allowed, 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).


Revised Return

Discovery of any omission or any wrong statement in the already furnished ITR, the concerned Person (ITR filer) may furnish a ‘revised return’ at any time before the expiry of 1 year from the end of the relevant Assessment year or before the completion of the Assessment (whichever is earlier).


Defective/Invalid Return and Rectification

Where the relevant Assessing Officer (AO) considers that the return of income as furnished by the concerned assessee is ‘defective’, such AO may intimate the defect (types listed by section 139(9) of the Act) and provide an opportunity to rectify the same within 15 days of such intimation (or further period allowed pursuant to an application in that respect).

  • Failure to so rectify the defect within the said period(s) would result in the relevant ITR being treated as an ‘invalid’ return and the provisions of the Act will apply as if the concerned Assessee had failed to furnish the ITR.
  • Where the said Assessee rectifies the defect after the expiry of the said period(s) but before the relevant Assessment is made, the AO may condone the delay and treat the ITR as a valid return.

 

Penalties


Penalty for Failure to furnish Return of Income (ITR)

Section 271F of the Act imposes a penalty of Rs.5000 on a person who fails to furnish his/her/its ITR before the end of the relevant Assessment year, when required by the Act to do so.


Penalty for Under-reporting and Misreporting of Income

From Assessment year 2017-18 onwards, section 270A of the Act empowers the relevant Assessing Officer (AO) or the Commissioner (Appeals) or the Principal Commissioner or Commissioner (as the case may be) to impose a penalty in addition to tax (if any) during the course of any proceedings under the Act, on any person who has under-reported income, which also include the following —

  • The income assessed is greater than the income determined in the return processed;
  • The income assessed is greater than the maximum amount not chargeable to tax, where no return of income has been furnished;
  • The income reassessed is greater than the income assessed or reassessed immediately before such reassessment.

The cases of ‘Misreporting‘ of income referred to above would also include —

  • Misrepresentation or suppression of facts
  • Claim of expenditure not substantiated by any evidence

 

Self-Assessment

Income Tax (tax) is payable by taxable persons (Assessees) on a ‘self-assessment’ basis under the Income Tax Act 1961 (the Act). The quantum* of such tax is payable on the basis of any Income Tax Return (ITR) required to be furnished under the applicable provision(s) of the Act and after taking into account the following —

  • Amount of tax (if any) already paid under any provision of the Act
  • Tax deducted (TDS) or collected at source (TCS) (if any)
  • Relief of tax or deduction of tax claimed (if any) under section 90 or section 91 on account of tax paid in a country outside India etc.

*Income Tax together with interest payable under any provision of the Act for any delay in furnishing the return or any default or delay in payment of advance tax (payable before furnishing the ITR and the same must be accompanied by proof of payment of such tax and interest).

Failure to pay the whole or any part of such tax and/or interest would deem the concerned Assessee an ‘Assessee in Default‘ and consequences thereof would apply, without prejudice to any other consequences which may also be incurred for breach of relevant provisions (if any) of the Act.


Inquiry before Assessment – Section 142 Notice

The jurisdictional Assessing Officer (AO) may send the concerned Assessee a ‘section 142’ notice for the purpose of making an assessment under the Act, even where such person has submitted an ITR or, has not done so and the time allowed for filing the same has expired. Such notice would specify a date and require compliance, including in the following manner —

  • Where such person has not made an ITR within the time allowed, furnish the same (including of any other person in respect of which he/she/it is assessable), in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed,
  • Produce (or cause to be produced) such accounts or documents as the AO may require, or
  • Furnish in writing and verified in the prescribed manner information in such form (usually a ‘questionnaire’) and on such points or matters (including a statement of all assets and liabilities of the Assessee, whether included in the accounts or not) as the Assessing Officer may require.

For the purpose of obtaining full information in respect of the income or loss of any person, the Assessing Officer may make such inquiry as he considers necessary.


Reasonable Opportunity of Being Heard

Such Assessee is required (except in case of ‘Best Judgement’ Assessment under section 144) to be given an opportunity of being heard in respect of any material gathered on the basis of any such inquiry and proposed to be utilised for the purposes of the assessment.

 

Assessment and Intimation – Section 143(1)

Section 143 of the Act details the procedure (general steps detailed below) followed by the relevant assessing authorities under the Act where an ITR has been submitted for processing under section 139 (or in response to a section 142(1) notice), which includes —

  • Computing the ‘total income or loss’ of the subject Assessee after making the necessary adjustments^ (such arithmetical errors in the relevant ITR or incorrect claim(s) made therein, if such incorrect claim is apparent from any information in the said ITR etc.)
  • Income Tax (tax) and interest (if any) is thereafter computed on the basis of the total income so computed
  • Tax quantum payable/refund due (as the case may be) to the Assessee is determined after adjustment of the tax and interest (if any)
  • Intimation is prepared or generated and sent to the subject Assessee specifying the sum determined to be payable/refund due (as the case may be)
  • Amount of such refund (if any) then becomes due to the said Assessee

^No such adjustments can be made unless an intimation is given to the subject Assessee of such adjustments either in writing or in electronic mode, and the response received (if any) is required to be considered before making any such adjustment.

 

‘Scrutiny’ Assessment and Notice

Where an ITR has been filed under section 139, or in response to a section 142(1) notice, the jurisdictional Assessing Officer (AO) etc. may serve on the concerned Assessee a ‘scrutiny’ notice^^ under section 143(2) where such AO considers it necessary or expedient to ensure that the concerned Assessee has not —

  • Understated the income or
  • Not computed excessive loss or
  • Not under-paid the tax in any manner

Such notice would require the said Assessee, on a date specified therein, either to attend the office of the AO or to produce, or cause to be produced any evidence on which the Assessee may rely in support of the filed ITR. The AO thereafter, by an order in writing will make an Assessment of the total income or loss of the said Assessee and determine the sum payable/refund due (as the case may be) to him on the basis of such Assessment.

^^No notice under this sub-section shall be served on the assessee after the expiry of 6 months from the end of the financial year in which the ITR is furnished.

 

Best Judgment Assessment – Section 144

The jurisdictional Assessing Officer (AO) after taking into account all relevant material gathered and after giving the concerned Assessee an opportunity of being heard, can make the Assessment of such person’s total income or loss ex parte or to the best of his/her judgement to determine the tax sum payable in the following circumstances —

  • Assessee fails to file an ITR or a ‘revised return’ as required under the Act; or
  • Assessee fails to comply with all the terms of a section 142(1) notice etc.; or
  • Despite filing an ITR, Assessee fails to comply with all the terms of a ‘scrutiny’ notice under section 143(2) of the Act.

 

Reassessment/Assessment and Section 148 Notice

Under section 147 of the Income Tax Act 1961 (the Act), if the Assessing Officer (AO) has ‘reason to believe’ that any income chargeable to tax has escaped assessment for any assessment year, he/she may and subject to the relevant provisions of the Act, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to notice subsequently in the course of such proceedings.

> Read more about Section 148 ‘Reassessment/Income Escaping Assessment’ Notice

 

Assessment in case of Search or Requisition – Section 153A

Subject to the satisfaction of prescribed conditions under section 153A read with section 132/132A, the Assessing Officer (AO) is potentially empowered to assess or reassess the total income of the concerned Assessee in respect of 6 Assessment years (‘Block Period’) immediately preceding the Assessment year relevant to the Previous year in which —

  • ‘Search’ action under section 132 is conducted; or
  • ‘Requisition’ is made under section 132A for books of account, other documents or any assets with respect to the said Assessee.

 

Assessment of Income of any Other Person – Section 153C

Under section 153C of the Act, where the relevant Assessing Officer (AO) is satisfied that any money, bullion, jewellery etc. seized or requisitioned, belongs to/or any books of account etc. requisitioned pertains/or any information contained therein relates to a person other than the person referred to in section 153A, then the same can be handed over to the AO having jurisdiction over such other person to be proceeded against in accordance with the provisions of section 153A (if the latter mentioned AO is satisfied that the books of account etc. have a bearing on the determination of the total income of such other person for the relevant Assessment year(s) under the Act).

 

Time Limit for Completion of Assessment, Reassessment and Recomputation

Subject to the provisions of section 153 of the Act and others that may be applicable, the following time limits are imposed on assessing authorities —

  • No order of Assessment can be made under section 143 or section 144 of the Act at any time after the expiry of 21 months (reduced to 18/12 months for AY2018-19/2019-20 respectively) from the end of the Assessment year in which the subject income was first assessable
  • No order of assessment, reassessment or recomputation can be made under section 147 after the expiry of 9 months (increased to 12 months when notice served on or after 1 April 2019) from the end of the financial year in which the notice under section 148 was served


Get Professional Help – Plan/Reply/Object/Appeal an Assessment/Reassessment

(click the “MinusTax Professionals” red banner below and fill-up/submit the pop-up form)

Need Tax Help?

Under the Income Tax Act 1961 (the Act), if a person satisfies the concerned Assessing Officer (AO) that the amount of tax paid (such as by way of TDS/TCS, Advance Tax, Self-Assessment Tax etc.) by him/her/it (or on behalf/treated as such) for any assessment year exceeds the amount otherwise properly chargeable to income tax under the Act for the said year, such person shall be entitled to a refund of the excess.

> Read more on Income Tax ‘Refunds’


Get Professional Help – Apply/Appeal Denial of Income Tax Refund

(click the “MinusTax Professionals” red banner below and fill-up/submit the pop-up form)

Need Tax Help?

As an alternative to pursuing income tax appeals as above mentioned or where such an avenue for appeal may not be available under the Act, to obtain relief from adverse orders or circumstances, an application for the following alternative remedies (if grounds prescribed therein are satisfied) may be made.

> Read more on ‘Rectification of Mistake’ and ‘Revision’ (section 264)


Get Professional Help – Apply/Object to Rectification or Revision Order

(click the “MinusTax Professionals” red banner below and fill-up/submit the pop-up form)

Need Tax Help?


Administrative Help

For administrative assistance and general queries, please feel free to contact via —
Telephone: +91 8800 38 1950
Email: contact@minustax.com

Alternatively, please contact for an appointment and visit our representational office in DLF Phase IV, Gurgaon (click for Google Map directions).

Follow us @MinusTax

Need Tax Help?
Need Tax Help?