CA IPCC Tax Notes Return of Income 5 Min QUICK REVISION

Return of Income 5 Min Summary | CA IPCC Tax Notes |

1. For Companies and Firms, it is compulsory to file Return of Income. However, for others, Return shall be filed only if there is a taxable income.
2. Indian Resident who is a owner or beneficial owner of an asset situated outside India shall also file a Return of Income.

Due Dates

Various Due Dates for Filing Return of Income are:
Companies30th Sept
Persons whose accounts are being Audited (for eg. Audit u/s 44AB)30th Sept
Partner in a Firm30th Sept
Assessee who is required to furnish report u/s 90E (Transfer Pricing)30th Nov
All other Cases31st July

After these due dates, a person can still file a Return which is called a Belated Return. A Belated Return shall be filed, before end of that AY, or before the completion of Assessment, Which ever is earlier.
# If a Return is filed after due date specified above, Interest @1% each month has to be paid.

Return of Losses:

If the assessee has any of the following losses, a Return has to be filed:
  • Business loss
  • Speculation business loss
  • Loss under Capital Gains
  • Loss from the activity of owning and maintaining race horses

Return by Political Parties:

Income of Political parties can be exempted under section 13A. To claim this exemption, such political party has to file a Return of Income. Such Return will be signed by its CEO.

Who Shall verifiy Return of Income (Who will Sign It)

Return Filed byWho Will Verify
FirmManaging Partner
LLPDesignated Partner
Local AuthorityPrincipal Officer
Political PartyChief Executive Officer

PAN – Who shall Apply

Every Person whose total income is more than basic deduction limit (and )Person carrying on a business whose gross receipts exceeds Rs.5 Lakh, shall apply for a PAN.

Quoting of PAN:

A person doing following transactions must quote his/her PAN:
  • Purchasing a Motor Vehicle, Opening a Bank Account, Applying for a Credit Card and Opening a Demat Account.
  • Payment exceeding Rs.50,000 for Hotel or Restaurant Bill, Foreign Travel Agency, Mutual Funds.
  • Sale or Purchase of any Immovable Property exceeding Rs.10 Lakh
# Where a person, entering into any transaction referred to in this rule, is a minor and who does not have any income chargeable to income-tax, he shall quote the PAN of his father or mother or guardian.

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