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Filing or Non-Filing of Income Tax Return u/s. 139(1) and u/s. 139(1C)

Specified class or classes of persons to be exempted from filing Return of Income [Section 139(1C)].

(1) Under section 139(1), every person has to furnish a return of his income on or before the due date, if his total income exceeds the basic exemption limit.

(2) For reducing the compliance burden of small taxpayers, the Central Government has been empowered to notify the class or classes of persons who will be exempted from the requirement of filing of return of income, subject to satisfying the prescribed conditions.

(3) Every notification issued under section 139(1C) shall, as soon as may be after its issue, be laid before each House of Parliament while it is in session, for a total period of thirty days. If both Houses agree in making any modification in the notification, the notification will thereafter have effect only in such modified form. If both Houses agree that the notification should not be issued, the notification shall thereafter have no effect.

Compulsory filing of return of income [Section 139(1)]

(1) As per section 139(1), it is compulsory for companies and firms to file a return of income or loss for every previous year on or before the due date in the prescribed form.

(2) In case of a person other than a company or a firm, filing of return of income on or before the due date is mandatory, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeds the basic exemption limit.

(3) Every resident and ordinarily resident having –

      (i) any asset (including financial interest in any entity) located outside India or

   (ii) signing authority in any account located outside India is required to file a return of income in the prescribed form compulsorily, whether or not he has income chargeable to tax.

(4) All such persons mentioned in (1), (2) & (3) above should, on or before the due date, furnish a return of his income or the income of such other person during the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed.

(5) Further, every person, being an individual or a HUF or an AOP or BOI or an artificial juridical person -

    − whose total income or the total income of any other person in respect of which he is assessable under this Act during the previous year

    − without giving effect to the provisions of Chapter VI-A

    − exceeded the basic exemption limit.

      is required to file a return of his income or income of such other person on or before the due date in the prescribed form and manner and setting forth the prescribed particulars.

For the A.Y.2013-14, the basic exemption limit is 2,00,000 for individuals/HUFs/AOPs/BOIs and artificial juridical persons,  2,50,000 for resident individuals of the age of 60 years but less than 80 years and  5,00,000 for resident individuals of the age of 80 years or more at any time during the previous year. These amounts denote the level of total income, which is arrived at after claiming the admissible deductions under Chapter VI-A. However, the level of total income to be considered for the purpose of filing return of income is the income before claiming the admissible deductions under Chapter VI-A.

(6) ‘Due date’ means -

    (a) 30th September of the assessment year, where the assessee, other than an assessee referred to in clause (aa), is -

          (i) a company,

         (ii) a person (other than a company) whose accounts are required to be audited under the Income-tax Act, 1961 or any other law in force; or

       (iii) a working partner of a firm whose accounts are required to be audited under the Income-tax Act, 1961 or any other law for the time being in force.

    (aa) 30th November of the assessment year, in the case of an assessee who is required to furnish a report referred to in section 92E.

    (b) 31st July of the assessment year, in the case of any other assessee.

Note – Section 92E is not covered within the scope of syllabus of IPCC Paper 4: Taxation. Section 139(1) has been amended to provide a different due date for assessees who have to file a transfer pricing report under section 92E (i.e. assessees who have undertaken international transactions). Therefore, reference has been made to this section i.e. section 92E for explaining the amendment in section 139(1).

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