Chapter 13 – Return Filing

Section 139(1): Assessees Required to File Return of Income

Compulsorily
1. Companies and firms (whether having profit or loss or nil income);
2. a person, being a resident other than not ordinarily resident, having any asset (including any
financial interest in any entity) located outside India held as a beneficial owner or beneficiary
or who has a signing authority in any account located outside India, whether or not having
income chargeable to tax;
3. Individuals, HUF, AOPs or BOIs and artificial juridical persons whose total income before giving
effect to the provisions of Chapter VI-A and sections 54, 54B, 54D, 54EC or 54F exceeds the
basic exemption limit.
4. Any person who during the previous year –
a. has deposited more than ₹1 crore in one or more current accounts maintained with a
banking company or a co-operative bank; or
b. has incurred expenditure of more than ₹2 lakh for himself or any other person for
travel to a foreign country; or
c. has incurred expenditure of more than ₹1 lakh towards consumption of electricity; or
d. fulfils such other conditions as may be prescribed
5. Any person other than a company or a firm, who is not required to furnish a return under
section 139(1)
a. if his total sales, turnover or gross receipts, as the case may be, in the business > ₹60
lakhs during the previous year; or
b. if his total gross receipts in profession > ₹10 lakhs during the previous year; or
c. if the aggregate of TDS and TCS during the previous year, in the case of the person, is
₹25,000 or more; or
However, a resident individual who is of the age of 60 years or more, at any time during
the relevant previous year, if the aggregate of TDS and TCS during the previous year,
in his case, is ₹50,000 or more.
d. the deposit in one or more savings bank account of the person, in aggregate, is ₹50
lakhs or more during the previous year

Due Date of Filing Return of Income

1. 31st October of the assessment year, in case the assessee is:
a. a company;
b. a person (other than company) whose accounts are required to be audited; or
c. a partner of a firm whose accounts are required to be audited.
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2. 30 November of the assessment year, in case of partners of the firm being such assessees
who are required to furnish report under section 92E
3. 31st July of the assessment year, in case of any other assessee

Section 234A: Interest for Default in Furnishing Return of Income

• Interest under section 234A is payable where an assessee furnishes the return of income after
the due date or does not furnish the return of income.

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 • Assessee shall be liable to pay simple interest @1% per month or part of the month for the
period commencing from the date immediately following the due date and ending on the
following dates:
Circumstances Ending on the Following Dates
Where the return is furnished after due date The date of furnishing of the return
Where no return is furnished The date of completion of assessment
However, where the assessee has paid taxes in full on or before the due date, interest under
section 234A is not leviable.

Section 234F: Fee for Default in Furnishing Return of Income

• Where a person who is required to furnish a return of income under section 139, fails to do so
within the prescribed time limit under section 139(1), he shall pay, by way of fee, a sum of
₹5,000.
• However, if the total income of the person does not exceed ₹5 lakhs, the fees payable shall
not exceed ₹1,000.

Section 139(3): Return of Loss

• An assessee can carry forward or set off his/its losses provided he/it has filed his/its return
under section 139(3), within the due date specified under section 139(1).
• Exceptions:
o Loss from house property and
o unabsorbed depreciation
can be carried forward for set-off even though return has not been filed before the due date.

Section 139(4): Belated Return

A return of income for any previous year, which has not been furnished within the time allowed u/s
139(1), may be furnished at any time before the:

• three months prior to the end of the relevant assessment year (i.e., 31.12.2023 for P.Y. 2022-
23); or
• completion of the assessment,

whichever is earlier.

Section 139(5): Revised Return

• If any omission or any wrong statement is discovered in a return furnished u/s 139(1) or
belated return u/s 139(4), a revised return may be furnished by the assessee at any time before
the:
o three months prior to the end of the relevant assessment year (i.e., 31.12.2023 for P.Y.
2022-23); or
o completion of assessment,
whichever is earlier.
• Thus, belated return can also be revised.

Section 139(8A): Updated Return

• Any person may, whether or not he has furnished a return under section 139(1) or belated
return under section 139(4) or revised return under section 139(5) for that assessment year,

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 furnish an updated return of his income or the income of any other person in respect of which
he is assessable, for the previous year relevant to the assessment year at any time within 24
months from the end of the relevant assessment year.
• The provisions of updated return would not apply, if the updated return of such person for
that assessment year –
o is a loss return; or
o has the effect of decreasing the total tax liability determined on the basis of return
furnished under section 139(1) or section 139(4) or section 139(5); or
o results in refund or increases the refund due on the basis of return furnished under
section 139(1) or section 139(4) or section 139(5).
• No updated return can be furnished by any person for the relevant assessment year, where –
o an updated return has been furnished by him under this subsection for the relevant
assessment year; or
o any proceeding for assessment or reassessment or re-computation or revision of
income is pending or has been completed for the relevant assessment year in his case;
or
o he is such person or belongs to such class of persons, as may be notified by the CBDT.

Section 139A: Permanent Account Number (PAN)

• Quoting of PAN is mandatory in all documents pertaining to the following prescribed
transactions:
o in all returns to, or correspondence with, any income-tax authority;
o in all challans for the payment of any sum due under the Act;
o in all documents pertaining to such transactions entered into by him, as may be
prescribed by the CBDT in the interests of revenue. For example, sale or purchase of a
motor vehicle, payment in cash of an amount exceeding ₹50,000 to a hotel against a
bill or bills at any one time, etc.
• Inter-changeability of PAN with the Aadhaar number: Every person who is required to furnish
or intimate or quote his PAN may furnish or intimate or quote his Aadhar Number in lieu of
the PAN if he:
o has not been allotted a PAN but possesses the Aadhar number
o has been allotted a PAN and has intimated his Aadhar number to prescribed authority
in accordance with the requirement contained in section 139AA(2).

Section 139AA: Quoting of Aadhar Number

• Aadhaar Number is to be quoted by every person on or after 1.7.2017 in the application for
allotment of PAN and in Return of Income.
• If a person does not have Aadhar Number, the Enrolment ID of Aadhar application form issued
to him at the time of enrolment shall be quoted.
• Every person who has been allotted PAN as on 1.7.2017 and who is eligible to obtain Aadhar
Number, has to intimate his Aadhar Number to the prescribed authority on or before
31.3.2022.
• Where a person, whose PAN has become inoperative, is required to furnish, intimate or quote
his PAN under the Act, it would be deemed that he has not furnished, intimated or quoted the
PAN, as the case may be, in accordance with the provisions of the Act.
• Consequently, he would be liable for all the consequences under the Act for not furnishing,
intimating or quoting the PAN.

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 • However, the consequences would have effect from the date specified by the CBDT i.e., 1st
April, 2023.

Section 234H: Fee for Non-Furnishing of Aadhaar Number

• Where a person, who is required to intimate his Aadhar Number under section 139AA(2), fails
to do so on or before the notified date i.e., 31st March, 2022, he shall be liable to pay such fee,
as may be prescribed, at the time of making intimation under section 139AA(2) after 31st
March, 2022.
• However, such fee shall not exceed ₹1,000.
• As per section 139AA(2), every person who has been allotted PAN as on 1st July, 2017 and
eligible to obtain Aadhar Number, is required to intimate his Aadhaar number to the
prescribed authority in the prescribed form and manner.
• Accordingly, the CBDT has, vide notification no. 17/2022 dated 29.3.2022, inserted Rule
114(5A) to provide that if such person fails to do so by the date notified in section 139AA(2)
i.e., 31st March, 2022, then at the time of subsequent intimation of his Aadhaar number to the
prescribed authority, such person would be liable to pay, by way of fee, an amount equal to,
o ₹500, in a case where such intimation is made within three months from the date
referred in section 139AA(2) i.e., by 30.06.2022; and
o ₹1,000, in all other cases.

Section 140A: Self-Assessment

• Where any tax is payable on the basis of any return required to be furnished under section
139, after taking into account
o the amount of tax, already paid,
o the tax deducted or collected at source
o any relief of tax claimed under section 89
o any tax credit claimed to be set-off in accordance with the provisions of section 115JD;
and
o any tax and interest payable as per the provisions of section 191(2)
the assessee shall be liable to pay such tax together with interest and fee payable under any
provision of this Act for any delay in furnishing the return or any default or delay in payment
of advance tax before furnishing the return.
• Where the amount paid by the assessee under section 140A(1) falls short of the aggregate of
the tax, interest and fee as aforesaid, the amount so paid shall first be adjusted towards the
fee payable and thereafter, towards interest and the balance shall be adjusted towards the tax
payable.

Section 140B: Payment of Tax, Additional Tax, Interest and Fee Before
Furnishing Updated Return of Income if No Return is Furnished Earlier
• Where no return of income has been furnished by an assessee and tax is payable, on the basis
of updated return to be furnished by such assessee under section 139(8A), the assessee would
be liable to pay such tax together with interest and fee payable under any provision of this Act
for any delay in furnishing the return or any default or delay in payment of advance tax, along
with the payment of additional tax computed under section 140B(3), before furnishing the
return.
• The tax payable is to be computed after taking into account the following -

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 o the amount of tax, if any, already paid, as advance tax
o the tax deducted or collected at source
o any relief of tax claimed under section 89; and
o any tax credit claimed to set-off in accordance with the provisions of section 115JD
• Payment of tax, additional tax, interest and fee before furnishing updated return of income if
return is furnished earlier:
o Where, return of income under section 139(1) or 139(4) or 139(5) has been furnished
by an assessee and tax is payable, on the basis of updated return to be furnished by
such assessee under section 139(8A), the assessee would be liable to pay such tax
together with interest payable under any provision of this Act for any default or delay
in payment of advance tax, along with the payment of additional tax computed under
section 140B(3), as reduced by the amount of interest paid under the provisions of this
Act in the earlier return, before furnishing the return.
o The tax payable has to be computed after taking into account the following -
▪ the amount of relief or tax referred to in section 140A(1), the credit for which
has been taken in the earlier return
▪ the tax deducted or collected at source on any income which is subject to such
deduction or collection and which is taken into account in computing total
income and which has not been included in the earlier return
▪ any tax credit claimed to set-off in accordance with the provisions of section
115JD, which has not been claimed in the earlier return.
The aforesaid tax would be increased by the amount of refund, if any, issued in respect
of such earlier return.
• Additional income-tax payable at the time of updated return: The additional tax payable at the
time of furnishing the updated return under section 139(8A) would be –
o 25% of aggregate of tax and interest payable, as determined above, if such return is
furnished after expiry of the time available under section 139(4) or 139(5) and before
completion of the period of 12 months from the end of the relevant assessment year;
or
o 50% of aggregate of tax and interest payable, as determined above, if such return is
furnished after the expiry of 12 months from the end of the relevant assessment year
but before completion of the period of 24 months from the end of the relevant
assessment year.

Important Amendments for May, 2023

1. Requirement of application for allotment of PAN by certain persons [Notification No. 53/2022
dated 10.05.2022]
a. Section 139A(1) requires the certain persons, who have not been allotted a permanent
account number (PAN), to apply to the Assessing Officer within the specified time for
the allotment of a PAN.
b. Further, for widening the tax base, every person who has not been allotted a PAN and
intends to enter into such transaction as prescribed by the CBDT is also required to
apply to the Assessing Officer for allotment of PAN.
c. Accordingly, Rule 114BA has been inserted w.e.f. expiry of 15 days from 10.5.2022 to
prescribe the following transactions:
Person required to apply for PAN [Rule 114BA] Time limit for making
application for PAN [Rule
114]

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 (i) Every person, who intends to deposit cash in his At least 7 days before the
one or more accounts with a banking company, date on which he intends
co-operative bank or post office, if the cash to deposit cash over the
deposit or the aggregate amount of cash deposit specified limit, i.e., ₹20
in such accounts during a financial year is ₹20 lakh or more.
lakh or more
(ii) Every person, who intends to withdraw cash At least 7 days before the
from his one or more accounts with a banking date on which he intends
company, co-operative bank or post office, if the to withdraw cash over the
cash withdrawal or the aggregate amount of specified limit, i.e., ₹20
cash withdrawal from such accounts during a lakh or more.
financial year is ₹20 lakh or more
(iii) Any person, who intends to open a current At least 7 days before the
account or cash credit account with a banking date on which he intends
company or a co-operative bank, or a post to open such account.
Office.
2. Quoting and authentication of PAN or Aadhaar number by certain persons [Notification No.
53/2022 dated 10.05.2022]
a. Every person entering into such prescribed transactions is required to quote his PAN
or Aadhaar number, as the case may be, in the documents pertaining to such
transactions.
Such persons are also required to authenticate such PAN or Aadhaar number in the
prescribed manner [Section 139A(6A)].
b. Every person receiving such document relating to transactions referred to in (a) has to
ensure that PAN or Aadhaar number has been duly quoted in such document.
They also have to ensure that such PAN or Aadhaar number is so authenticated
[Section 139A(6B)].
Accordingly, Rule 114BB has been inserted (w.e.f. expiry of 60 days from 10.5.2022) to
prescribe that every person has to, at the time of entering into a transaction specified in
column (2) of the Table below, quote his permanent account number or Aadhaar number, as
the case may be, in documents pertaining to such transaction, and every person specified in
column (3) of the said Table, who receives such document, has to ensure that the said number
has been duly quoted and authenticated:
(1) (2) (3)
S. Nature of Transaction Person
No.
1. Cash deposit or deposits aggregating to ₹20 lakhs or A bank or a co-operative
more in a financial year, in one or more account of a bank or Post Master
person with a bank or a co-operative bank or Post Office. General of a Post Office.
2. Cash withdrawal or withdrawals aggregating to ₹20 A bank or a co-operative
lakhs or more in a financial year, in one or more account bank or Post Master
of a person with a bank or a co-operative bank or Post General of a Post Office.
Office
3. Opening of a current account or cash credit account by A bank or a co-operative
a person with a bank or a co-operative bank or Post bank or Post Master
Office General of a Post Office.
Note – Quoting of PAN or Aadhaar number is, however, not required in case where the person
depositing money as per S. No. 1 or withdrawing money as per S. No. 2 or opening a current
account or cash credit account as per S. No. 3 is the Central Government, the State
Government or the Consular Office [Notification No. 105/2022 dated 1.9.2022].

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