final tax presentation
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The word assessment used in more comprehensive
sense i.e. including the whole procedure for
imposing liability, upon the tax payer. The
method for assessment of tax can be divided intothree steps:
a) Computation of tax payable income
b) Computation of tax payable on such taxable
incomec) Serving of notice of demand in prescribed form
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The act makes it the obligation of each and every
person to submit particulars of the income relating
to a particular accounting period to Income tax
Officer of his area in prescribed form.This prescribed form is known as
Return of Income and its filing is first step toward
assessment procedure.
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TAX PAYER MINIMUM INCOME TO ATTRACT THE
PROVISION OF FILING OF RETURN OF
INCOME
Company or firm [sec 139(1)] Any income or loss
A person other than a company or firm [sec
139(1)]
Compulsory return if taxable income ( plus
deductions under sections 10A , 10B, 10BA
and sections 80C to 80U ) exceed the
exemption limit
An individual or HUF[sec 139(1)] If gross total income (total income before
allowing deductions u/s 80C to 80U of an
individual or HUF without giving effect to
exemption u/s 10A of tax free zones or u/s
10B under 100% EOU or 10BA for export
of certain goods, exceeds the exempted
limit
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For companyassesses By 30th day of September
oftheassessmentyear
For all non corporate persons
whose accounts are subject to audit
and working partners of a firm
whose accounts are to subject to
audit
By 30th day of September of the
assessment year
For all other persons By 31st day of July of the assessment
year
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New ITR
forms
Subject
ITR - 1 For an individual having income from salary , One house property
and income from other sources
ITR- 2 For Individuals and HUFs having income from any source except
from
business or profession
ITR-3 for Individuals and HUFs being partners in Firms and not having
Proprietary business or profession
ITR-4 for Individuals and HUFs having Proprietary business or profession
ITR-5 For firms, AOPs and BOIs
ITR-6 For companies other than companies claiming exemption under sec
11
ITR-7 For persons including companies required to furnish return under sec
139(4A)/(4B)/(4C)/(4D)
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ITR-8 Return for Fringe Benefits
ITR-V Return of Income/Fringe Benefits in forms ITR-1,ITR-2,ITR-3,ITR-
4,ITR-5,ITR-6,ITR-7 and ITR-8 transmitted electronically without
digital signatures
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The return of loss should be filed in the prescribed
form and within time allowed u/s sec 139(1) and
sec 139(3). The following losses cannot be carried
forward if the return of loss is not submitted intime-
a. Business loss(speculative or otherwise)
b. Capital loss
c. Loss from activity of owning and maintaining racehorses
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1. Belated Return: [Section 139(4)]: This is applicable toany person who has not furnished his return ofincome within the time allowed u/s 139(1) or inresponse to a notice issued u/s 142(1)
2. Time limit: The belated return can be filed eitherbefore:(a) The expiry of one year from the end of therelevant Assessment Year, or(b) Completion of assessment, whichever is earlier.
3. Invalid Return: Return of income flied after belatedperiod will be treated as invalid.
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1. Conditions:
(a) There should be an omission or wrong statementIn the original return Filed.
(b) The original return should have been filed withinthe due date u/s 139(1) or within the time limitspecified in the notice issued u/s 142(1).
2. Time limit: The revised return shall be filed before
(a) The expiry of one year from the end of the
relevant Assessment Year, or(b) Completion of assessment whichever is earlier.
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A return is said to be defective unless all the conditions are fulfilled
(1)All annexures, statements, columns of returns of income
regarding computation of income under all heads are dully filed in;
(2)Return is accompanied by statement showing computation of tax
(3)Return is accompanied by audit report as required u/s 44 AB.
(4)Return is accompanied to proof of payment of tax, TDS and
advance tax. In case return is not accompanied by proof of payment
of tax it shall not be considered defective if
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(a)Certificate of TDS has not been furnished u/s 203,
(b) Certificate of TDS is produced within a period of two years as
specified u/s 155(14) [rectification of mistake]
(5)Return is accompanied by manufacturing account, trading account,
P&L account or income and expenditure account, personal account of
the sole proprietor, and in case of firm, AOP or BOI, personalaccounts of all partners or members.
(6)If audit is compulsory, the auditied P&L A/c Balance sheet and
auditors report must accompany the return.
(7)In case accounts are not maintained, the statement showing
turnovers, gross receipts, gross expenses and net profit and list of
sundry debtors and sundry creditors.
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` In case Assessing Officers finds that the return filed
is defective, he may intimate the defect to the
assessee giving him an opportunity to rectify thedefect within 15 days of such intimation.
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` If the total income of a person exceeds the
maximum exempted limit in any previous years, or
` If the total income of any person in respect of
whom he is responsible, exceeds the maximumexempted limit , or
` If the total sales, turnover or gross receipts are or
is likely to exceed Rs. 5,00,000 in any previous
year if such person is carrying business orprofession, or
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` If any person is required to furnish a return ofincome under section 139 (4A)
` If any person is not covered under any of theabove provisions can apply for PAN.
Every person shall-
` Quote such numbers in all returns to , orcorrespondence with, any income tax authority
` In all challans for the payment of any sum dueunder this act
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` In all document pertaining to such transactions
as may be prescribed by the board in the
interest of the revenue :
Quote General Index Register Number till suchtime
` To intimate the assessing officer any change in
his address or in his name and nature of his
business on the basis of which the PAN wasallotted to him
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1. Self assessment(sec 140A)
2. Enquiry before assessment[sec142(1)]
3. Assessment on the basis of return of filed
4. Best judgement assessment
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Self assessment-E
very assessee liable to pay tax or fringe benefit tax isrequired to submit his return .These are the following
points-
The amount of tax ,if any, already paid under provision
of this act.Any tax deducted or collected at source.
Any relief of tax or deduction of tax claimed u/s 90or 91
on account of tax paid in a country outside India.
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Any relief tax claimed u/s 90 in account of tax paid in
any specificied territory outside India.
Any tax credit claimed to be set off in accordance with
the provision of sec 115AA.
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Enquiry before assessment-
where such person has, within the time allowed u/s 139(1) or
before the end of relevant assessment year failed, to furnish areturn of his income or income of any other person in espect of
which he is assessed under this act.
To produce or cause to be produced such books, accounts or
documents as the assessing officer may require.To furnish in writing and verified in the prescribed manner
information in such form .
The assessing officer shall not required production of any
book of accounts relating to a period more than 3 years to theprevious year
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Assessment on the basis of return filed-
1.When a return has been filed[ sec(14)(a)]
If ay tax or interest is found due on the basis of such return
after adjustment of any advance tax paid on self assessment
and any amount paid.
If any refund is due on the basis of such return, it shall be
granted to the assessee and an intimation to this effect shall be
set to the assessee.
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Assessment on the basis of enquiry[sec 143(2)
&143 (3)]
In scrutiny assessment the AO calls the assessee to furnish
the explanations and books of accounts. For undertaking the
scrutiny assessment the AO has to issue a notice to the
assessee under section 143(2).
If Assessee produces the information and explanations
required by the Assessing Officer (AO) the AO completes the
assessment and determine the Taxable income and income tax
liability on thebasis of the information and explanations
produced before him.
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Adjustment of tax on regular assessment[sec143(4)]
Any tax or interest paid by assessee shall be deemed
to have been paid towards such regular assessment.In case any excessive amount has been refunded but
amount refundable on regular assessment is less, the
excess amount of refund shall be deemed to be tax
payable by assessee
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Best Judgement assessment-
The Best judgment Assessment can be made by an AO under
the following cases: -
1. Assessee does not file his regular return of income u/s 139.
2. Assessee does not comply with instructions u/s 142 (1),
i.e., notice requiring to file his return of income or 142 (2A),
i.e., notice requiring assessee to conduct audit of hisaccounts.
3. Assessee does not comply with instructions u/s 143(2), i.e.,
notice of scrutiny assessment.
4. AO is not satisfied regarding completeness of accounts.