FILING OF RETURN OF INCOME

FILING OF RETURN OF INCOME

As per Section 139 (1) of the Act, a person is required to file the return of income if its total income, before deductions, exceeds the basic exemption limit. Further, the Act contains the provisions in relation to time limit for filing belated returns and revised returns. Furthermore, there is a provision in the Act which provides that the return shall be considered as defective if it is filed with self assessment tax payable.

It is proposed to amend the time limit to file belated returns and widen the scope of revised returns. The time limit to file the belated return is amended to be, end of assessment year or before completion of assessment, whichever is earlier. Further, the provision of revised return is amended to include belated returns as well. Thus, even if the return is filed after the due date prescribed in Section 139 (1), the same can be revised within 1 year from the end of assessment year or completion of assessment, whichever is earlier.

It is further proposed that the return shall not be considered as defective if it is filed without making the payment of self assessment tax. Additionally, Section 139 (1) is amended to consider that if a person earns an income under Section 10 (38), which exceeds the basic exemption limit, he has to file the return of income within the due date specified under Section 139 (1), even though the said income is exempt from tax.

The above amendments shall streamline the filing of returns, including belated returns and further, it shall monitor the transaction dealings of assesses in capital gains transactions.

These amendments will take effect from 1st day of April, 2017 and will, accordingly apply in relation to assessment year 2017-2018 and subsequent years.

No Comments

Leave Comment

Please enter a message.
Please enter your name.
Please enter a valid e-mail address.