CA Final Paper 7 Direct Tax Laws Chapter 21 CA. Subodh Shah

Size: px

Start display at page:

Download "CA Final Paper 7 Direct Tax Laws Chapter 21 CA. Subodh Shah"

Samantha Newman
5 years ago
Views:

1 CA Final Paper 7 Direct Tax Laws Chapter 21 CA. Subodh Shah

2 Filing of returns Who & When Belated returns Revised Returns Defective Returns PAN Tax Return Preparer Scheme 2

3 Section 139(1) Who is required to file return? A) Every Company or Firm B) Other Assessees: If total income exceeds basic exemption limit (Before taking deductions under Chapter VIA) 3

4 ASSESSEE Company, Person whose accounts are required to be audited, working partner in audited firm and who is drawing remuneration from the firm, Any person who is required to file transfer pricing audit report in Form No 3CEB Other Assessee DUE DATE 30 th September 30 th November 31 st July 4

5 If ROR & Has assets located outside India or Signing authority in any account located outside India Must file return Due date is 31 st July 5

6 SECTION 139(4A) Charitable or religious Trust to file SECTION 139(4B) Political parties to file 6

7 SECTION 139(4C) Associations/institutions u/s 10(21) Scientific Research Asso. 10(22B) News Agency 10(23A/B) Associations/ Institutions 10(23C) Educational, hospital, medical etc 10(24) Trade Unions 7

8 SECTION 139(4D) Every university, college or other institution referred to in section 35(1)(ii) and (iii) 8

9 Salaried employees have option to file returns through their employers. Employer shall use the BRPS to submit the returns before the due date 9

10 The Central Government has the power to exempt any class of persons from filing a return of income. Individuals with total income upto Salary from 1 employers and SB Interest upto 10,000 10

11 Return of loss to be filed within time limit of 139(1) To get the benefit of carry forward return should be filed within time limit of sec 139(1) Exceptions Loss from House Property Unabsorbed depreciation 11

12 Belated Return can be filed at any time before One year from end of the relevant A.Y.,or Completion of the Assessment. Whichever is earlier. Any return filed after this period is a time barred return and hence invalid. 12

13 Any omission or wrong statement in the return filed earlier can be revised at any time before: One year from end of the relevant A.Y.,or Completion of the Assessment. Whichever is earlier. 13

14 Only a return originally filed within time can be revised. Belated return cannot be revised Kumar Jagdish Chandra Sinha vs CIT(SC) It steps into the shoes of original return and substitutes the same Dhampur Sugar Mills 14

15 1. Can a return filed u/s 139(3) be revised? 2. For AY due date is and assessee filed return on that date showing income Rs On he files revised return showing loss of Rs Can he carry forward the loss? 15

16 Loss cannot be carried forward Return cannot be revised Interest u/s 234A for late filing Penalty u/s 271F Rs.5000: If return is filed after the end of the relevant assessment year No deductions u/s 80I series and 10A series Prosecution u/s 276CC 16

17 If the tax along with interest if any payable u/s 140A is not paid on or before the date of furnishing the return Then the return shall be treated as defective. 17

18 Defect to be intimated by AO Rectification within 15 days from the date of intimation Return invalid if not rectified. Condonation possible if rectified before the assessment is made. 18

19 Persons required to apply & obtain : 1. Person who is assessable to tax. 2. Whose turnover exceeds Rs.5 lacs. 3. Who is required to furnish return u/s.139(4a). 4. Persons registered under CST, applying for IEC, service tax assesses or customs, excise assesses. 19

20 Sale or purchase of immovable property of Rs.5 lacs or more. Sale or purchase of motor vehicle, other than two-wheeler. Time deposit in a bank above Rs Deposit exceeding Rs in Post office S.B.A/c. Contract for sale or purchase of securities >Rs.1 lac. Making an application for installation of a telephone including cellphone connection 20

21 Payment to hotels and restaurants against their bills for an amount exceeding Rs at a time. Payment in cash for purchase of DD or pay order for Rs or more in any one day Cash deposit of Rs50000 or more in a bank on any one day Cash payment for travel to foreign country exceeding Rs at a time 21

22 For issue of Credit Card Payment of Rs or more to Mutual fund Company for acquiring its shares or debentures RBI for obtaining bonds Purchase of Jewellery of 5 lakh or more 22

23 Declaration Form No.61: Agricultural income Others Form No.60 23

24 Qualifications Ineligibles Training Fees 24

25 Assessee himself Impact of non signing 25

26 Where any tax is payable on basis of return furnished, after taking into account Advance tax, TDS or TCS Tax relief u/s 90, 90A or 91 Tax credit u/s 115JAA, 115JD The assessee shall be liable to pay the tax together with interest. 26

27 Amount paid u/s 140A is to be first adjusted towards interest and balance towards tax Assessee failing to pay tax wholly or in part would be assessee in default. 27

28 Section 139(1) : Who is to file a return and when Section 139 4A, 4B, 4C, 4D : Special persons who are required to file a return of income Section 139(3) : Return of loss Section 139(4) : Belated return Section 139(5) : Revised return 28

29 Section 139(9) : Defective Return Section 139A : Permanent Account Number Section 139B : Tax Return Preparers Scheme Section 140 : Who should sign a return of income Section 140A : Self Assessment Tax 29

30 30

CS- FINAL- DIRECT TAX Return of Income and Procedure of Assessment

CS- FINAL- DIRECT TAX Return of Income and Procedure of Assessment Section 139(1): Submission of return of income: Every person, if his or any person in respect of whom he is liable to tax and whose total