File Income Tax Return

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  • Last Updated on 27 January, 2021

1.Who are required to file Return of Income?

1.1 Mandatory Filing of Return of Income:

As per section 139 of the Income-tax Act, filing of return of income is mandatory for certain class of taxpayers. Whether filing of return of income is mandatory or not would depend on various factors, inter-alia, status of the taxpayer, tax deduction being claimed, and amount of income taxable during the year, among several other factors. 
 
These circumstances where filing of return is mandatory is discussed below:
 

 

Who is a taxpayer?

 

 

Whether filing of return is mandatory?

 

 

A Company

 

 

Yes

 

 

A Partnership Firm (including LLP)

 

 

Yes

 

 

 

An Individual or HUF

 

Yes, if total income exceeds basic exemption limit[1]

 

Note: Total income shall be calculated without giving effect to the deductions or exemptions under Sections 10(38), 10A, 10B or 10BA or Chapter VIA (i.e., Section 80C to 80U)

 

 

AOP or BOI or Artificial Juridical Person

 

 

Yes, if total income exceeds basic exemption limit1

 

Note: Total income shall be calculated without giving effect to the deductions or exemptions under Sections 10(38), 10A, 10B or 10BA or Chapter VIA (i.e., Section 80C to 80U)

 

 

Charitable or Religious Trust

 

 

Yes, if total income exceeds basic exemption limit1

 

Note: Total income shall be calculated without giving effect to the deductions under Sections 11 or 12.

 

 

Political Parties

 

 

Yes, if total income exceeds basic exemption limit1

 

Note: Total income shall be calculated without giving effect to the deductions under Sections 13A.

 

 

Specified Institutes[2] (i.e., Hospitals, News Agencies, etc.)

 

 

Yes, if total income exceeds basic exemption limit1

 

Note: Total income shall be calculated without giving effect to the deductions allowed under relevant clause of Section 10.

 

 

Any other person

 

 

Yes, if total income exceeds basic exemption limit.

 


1.2 Mandatory Filing of Return if taxpayer has Foreign Holdings:

Even if a person isn’t required to file return of income as per above table, return filing shall be mandatory if such person is resident in India and holds any asset (including any financial interest in any entity) located outside India or has signing authority in any account located outside India. Make TDS online payment.

2. Basic Exemption Limit:

Basic Exemption Limit is the threshold limit up to which income of a taxpayer is not chargeable to Income-tax. The basic exemption limit for the Assessment Year 2018-19 is as follows:

 

Status of Taxpayer

 

 

Basic Exemption Limit

 

 

An Individual who is below the age of 60 years during the financial year

 

 

Rs. 2,50,000

 

 

A Resident Individual who is above 60 years of age but less than 80 years during the financial year

 

 

Rs. 3,00,000

 

 

A Resident Individual who is above 80 years of age during the Financial Year

 

 

Rs. 5,00,000

 

 

HUF

 

 

Rs. 2,50,000

 

 

AOP

 

 

Rs. 2,50,000

 

 

BOI

 

 

Rs. 2,50,000

 

 

Artificial Juridical Person

 

 

 

Rs. 2,50,000

 

 

3.What is the due date for filing of return of income?

The income-tax return has to be filed by a taxpayer on or before the due dates as mentioned in below table to avoid any penalty and to be able to carry forward the losses.

Sr. No.

Status of the taxpayer

Due date

1

Company (if not required to furnish a report in Form No. 3CEB under section 92E)

September 30 of Assessment Year

2

Any Person (Corporate or Non-corporate) who is required to furnish a report in Form No. 3CEB under section 92E

November 30 of Assessment Year

3

Any person (non-corporate) whose accounts are to be audited under the Income-tax Law or under any other law

September 30 of Assessment Year

4

A working partner of a firm whose accounts are required to be audited under this Act or under any other law.

September 30 of Assessment Year

5

Any other assesse

July 31 of Assessment Year

4. What are the consequences in case of any default in filing of return of income?

Delay in filing of return of income may attract certain adverse consequences. Following are the consequences of delay in filing the return of income: • Loss (other than loss under the head “Income from house property”) cannot be carried forward. • Levy of interest at the rate of 1% per month under section 234A. • Levy of fee under section 234F** • Exemptions/deductions under sections 10A, 10B, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID and 80-IE are not available. **w.e.f. Assessment Year 2018-19, if a taxpayer fails to furnish return of income within due date then he shall be required to pay: a) Rs. 5,000 if return is furnished on or before December 31 of Assessment Year. b) Rs. 10,000 in any other case. However, if total income of the person does not exceed Rs. 5 lakh then fee payable shall be Rs. 1,000.

5. Specified Institutions for purpose of Section 139:

  • Research association referred to in section 10(21)
  • News agency referred to in section 10(22B)
  • Professional institution referred to in section 10(23A)
  • Fund established for welfare of employees as referred to in section 10(23AAA)
  • Institution constituted for the development of Khadi or village industries as referred to in section 10(23B)
  • University/institution/fund/trust covered u/s 10(23C)(iiiab), (iiiad) or (vi)
  • Hospital or any other medical institution covered u/s 10(23C)(iiiac), (iiiae), or (via)
  • Fund or institution of national importance as referred to in section 10(23C)(iv)
  • Public Religious or charitable trust as referred to in section 10(23C)(v)
  • Mutual Fund referred to in section 10(23D)
  • Securitisation trust referred to in section 10(23DA)
  • Investor Protection Fund referred to in clause (23EC) or clause (23ED) of section 10.
  • Core Settlement Guarantee Fund referred to in section 10(23EE)

6.Can an assessee revise his/her original return?

A return filed on or before due date can be revised by the taxpayer at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

  Related Articles:

What is Income tax?

Income Tax Rates

Income Tax Slab for AY 2018-19

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