Assessment Procedure

SECTION: 139(1)- Due dates for filling voluntary returns

PARTICULARS:
(1) Every person,—
(a) being a company [or a firm]; or
(b) being a person other than a company [or a firm], 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 exceeded the maximum amount which is not
chargeable to income-tax,
shall, 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 :

Every company [or a firm] shall furnish on or before the due date the return in respect of
its income or loss in every previous year

Every person, being an individual or a Hindu undivided family or an association of

persons or a body of individuals, whether incorporated or not, or an artificial juridical
person, 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, without giving effect to the
provisions of section 10A or section 10B or section 10BA or Chapter VI-A exceeded the
maximum amount which is not chargeable to income-tax, shall, 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.

Explanation .—In this sub-section, “Due date” means,—

(a) Where the assessee is—
(i) A company; or
(ii) A person (other than a company) whose accounts are required to be audited
under this Act or under any other law for the time being in force; or
(iii) A working partner of a firm whose accounts are required to be audited
under this Act or under any other law for the time being in force,
The 31st day of October of the assessment year;
(b) In the case of a person other than a company, referred to in the first proviso to
this sub-section, the 31st day of October of the assessment year;
(c) In the case of any other assessee, the 31st day of July of the assessment year.
SECTION: 139(1A)- Consolidated / bulk filing of salaried assesses
PARTICULARS:
Salaried assesses can furnished a return in the prescribed format to their employer. the
employer may then furnish a consolidated return for all its employees in the prescribed
format to the department on a floppy,C.D.,etc.

SECTION: 139(1B)-OPION TO FURNISH RETURN IN ELECTRONIC MODE

i.e. computer readable media
PARTICULARS:
Any person, being a company or being a person other than a company, required to
furnish a return of income under sub-section 139(1), may, at his option, on or before the
due date, furnish a return of his income for any previous year in accordance with such
scheme as may be specified by the Board in this behalf by notification in the Official
Gazette and subject to such conditions as may be specified therein, in such form
(including on a floppy, diskette, magnetic cartridge tape, CD-ROM or any other
computer readable media) and in the manner as may be specified in that scheme, and in
such case, the return of income furnished under such scheme shall be deemed to be a
return furnished under sub-section 139(1),

SECTION: 139(3)-Return of loss

PARTICULARS:
If any person who has sustained a loss in any previous year under the head “Profits and
gains of business or profession” or under the head “Capital gains” and claims that the loss
or any part thereof should be carried forward in the relevant sections, he has to submit his
sec.139 (1) i.e. on the due dates or else the loss might not be allowed to be carries
forward.

SECTION: 139(4)- Belated return i.e. return furnished after the due date
PARTICULARS:
Any person who has not furnished a return within the time allowed to him under sub-
section 139 (1), or within the time allowed under a notice issued under sub-section (1) of
section 142 (i) (discussed below),may furnish the return for any previous year at any time
before the expiry of 1year from the end of the relevant assessment year or before the
completion of the assessment, whichever is earlier. However he will be liable to interest
u/s.234A.
SECTION: 139(4A)-Return of income of charitable trusts and institutions
PARTICULARS:

Every person in receipt of income derived from property held under trust or other legal
obligation wholly for charitable or religious purposes or in part only for such purposes, or
of income being voluntary contributions ,shall, if the total income in respect of which he
is assessable as a representative assessee (the total income for this purpose being
computed under this Act without giving effect to the provisions of sections 11 and 12)
exceeds the maximum amount which is not chargeable to income-tax, furnish a return of
such income of the previous year in the prescribed form and verified in the prescribed
manner and setting forth such other particulars as may be prescribed and all the
provisions of this Act shall, so far as may be, apply as if it were a return required to be
furnished under sub-section 139(1).

SECTION: 139(4B)-Return of income of political parties

PARTICULARS:

The chief executive officer (whether such chief executive officer is known as Secretary
or by any other designation) of every political party shall, if the total income in respect of
which the political party is assessable (the total income for this purpose being computed
under this Act without giving effect to the provisions of section 13A) exceeds the
maximum amount which is not chargeable to income-tax, furnish a return of such income
of the previous year 139(1).

Every intuition referred to in sec.10’shall:

(a) Scientific research association referred to in clause (21) of section 10;
(b) News agency referred to in clause (22B) of section 10;
(c) Association or institution referred to in clause (23A) of section 10;
(d) Institution referred to in clause (23B) of section 10;
(e) Fund or institution i.e. any university or other educational institution etc.sec.10
(23c),
(f) Trade union (24) of section 10,;
Whose total income, without giving effect to the provisions of section 10,
exceeds the minimum exemption limit, must file a return u/s 139(1).

SECTION: 139(5)-Revised return i.e. submitting a fresh return subsequent to

discovery any error in the original return.
PARTICULARS:
If any person, having furnished a return under sub-section (1), or in pursuance of a notice
issued under sub-section (1) of section 142, discovers any omission or any wrong
statement therein, he may furnish a revised return at any time before the expiry of one
year from the end of the relevant assessment year or before the completion of the
assessment, whichever is earlier belated return u/s. 139(4) can not be revised.
SECTION: 139(6) - Particulars to be furnished in the return
PARTICULARS:
The particulars desired in return are:
a) Income exempt from tax.
b) Assets of the prescribed nature and belonging to him; his Bank account credit
card held by him.
c) Expenditure exceeding the prescribed limits incurred by him under prescribed
heads and such outgoing as may be prescribed.

SECTION: 139(6A)-Further requirements to be submitted with the case of an

assessee engaged in business or profession
PARTICULARS:
Without prejudice to the provisions of sub section (6) above, the return of an assessee
engaged in any business or profession, should include the following:
a) The report of any audit referred to in section 44AB
b) Particulars of the location and style of the principal place where he carries on the
business or profession and all the branches thereof.
c) The names and addresses of his partners, if any such business profession and is he
is a member of an A.O.P or B.O.I., the names of other members and their address.
d) The extent of share assessee partner or member and all other partners or members.

SECTION :139(9)-Defective return

PARTICULARS :
When a return could be considered as defective:
a) The annexure, statements and columns in the return of income relating to
computation of income chargeable under each head of income are not duly filled
in, or
b) Computation of tax is not accompanying the return, or
c) Where tax audit is compulsory , no tax audit report u/s.44AB is submitted along
with the return, or
d) The return is not accompanied by proof of
T.D.S or T.C.S. (Certificate), advance tax payment (Challans) and tax on self-
assessment (Challans) claimed to have been paid applicable till 31.3.2008.
Provided that where the return is not accompanied by proof of the tax, if any,
claimed to have been deducted [or collected] at source, the return of income shall
not be regarded as defective if—
(a) A certificate for tax deducted or collected was not furnished under section
203 or section 206C to the person furnishing his return of income;]
(b) Such certificate is produced within a period of two years specified under
sub-section (14) of section 155; or
 e) Where regular books of account are maintained by the assessee, the return is
accompanied by copies of manufacturing account, trading account, profit and loss
account or, as the case may be, income and expenditure account or any other
similar account and balance sheet alongwith the personal account of the
proprietor; (in the case of a firm) the personal account accounts of
partners/members association of persons or body of individuals (in case of
firm/AOP BOI) respectively, or
f) where the accounts of the assessee have been audited, the return is accompanied
by copies of the audited profit and loss account and balance sheet and the
auditor’s report, or
g) where regular books of account are not maintained by the assessee, the return is
accompanied by a statement indicating the amounts of turnover or, as the case
may be, gross receipts, gross profit, expenses and net profit of the business or
profession and the basis on which such amounts of total sundry debtors, sundry
creditors, stock-in-trade and cash balance as at the end of the previous year. are
computed.
Where the A.O. considers that the return of income furnished by the assesse is
defective, he may intimate the defect to the assessee and give him an opportunity
to rectify the defect within a period of 15 days from the date of service of such
intimation, or within such extended time as he may think proper.
If the defect is not rectified within the above period, the return would be treated as
invalid and it would be assumed that the assessee had failed to furnish the return.
Provided that where the assessee rectifies the defect after the expiry of the said
period of 15 days or the further period allowed, but before the assessment is
made, the A.O. may condone the delay and treat return as a valid return.

SECTION: 139A.Permanent account number.

PARTICULARS:
Every person,—
(i)if his total income or the total income of any other person in respect of which he is
assessable under this Act during any previous year exceeded the maximum
amount which is not chargeable to income-tax; or
(ii)carrying on any business or profession whose total sales, turnover or gross receipts are
or is likely to exceed 5,00,000 rupees in any previous year; or
(iii)Who is required to furnish a return of income under [sub-section (4A) of section 139],
and who has not been allotted a permanent account number shall, within such time, as
may be prescribed, apply to the Assessing Officer for the allotment of a permanent
account number. he must apply for it within the prescribed time i.e. before the end of the
previous year as per Rule114.

The Central Government, by notification in the Official Gazette, Specify, any class or
classes of persons by whom tax is payable or not under this Act or any tax or duty is
payable under any other law for the time being in force including importers and exporters
whether any tax is payable by them or not and such persons shall, within such time as
mentioned in that notification, apply to the Assessing Officer for the allotment of a
permanent account number.
The Central Government may, for the purpose of collecting any information which may
be useful or relevant to the purposes of this Act, by notification in the Official Gazette,
specify any class or classes of persons who shall apply to the Assessing officer for the
same.
The Assessing Officer having regard to the nature of the transactions as may be
prescribed, may also allot a permanent account number ,to any other person(whether any
is payable by him or not), in accordance with the manner and in accordance with the
procedure as may be prescribed.
Every buyer or licensee or lessee referred d to section 206C shall intimate his permanent
account number to the person responsible for collecting tax referred to in that section.
The assessee should quote G.IR. (General Index Register) number till such time P.A.
number is not allotted to such assessee(W.E.F.1.8.98)
Once a permanent account number is allotted, such number must be quoted in all returns,
correspondence with Income-tax authorities, challans for payment and in all documents
prescribed by the board. While moving the budget for payment and in all documents
prescribed by the board. While moving the budget for A.Y. 1999-2000, the Finance
Minister had mentioned the following transactions. (a) Purchase and Sale of Immovable
Property (b) Purchase and sale of motor Vehicles (c) Transactions in shares Exceeding
Rs.1,00,000 (d) Opening a new bank account.(e) Fixed Deposit of more than 50,000 (f)
Application of telephone connection(g) Payment to hotels exceeding Rs.25,000/-
Now if an assessee who is domiciled in India, furnishes his permanent account number to
authorities while leaving India along with the estimated period of stay outside India, it is
sufficient compliance and is not required to collect tax clearance certificate (I.T.C.C.) as
earlier.
The board is empowered to a make rules for (a) Determining the or classes of persons to
whom the provisions of this section shall not apply.(b) The form in which the assessee
who does not have P.A. No. or G.I.R. No. shall make his declaration.
He must intimate the A.O. about any change in the address, name or nature of business
carried on by him. W.E.F. 1.6.2001 it is compulsory for every person receiving any sum,
income or amount from which T.D.S. has been deducted, to intimate his P.A. number to
the person responsible for deducting T.D.S (Not applicable to a person giving declaration
u/s 197A). The person, who has deducted T.D.S./T.C.S, shall also quote the above P.A.
number in all statements, certificates, quarterly statements & returns filed by him.
Is a person without reasonable cause, fails to apply for the allotment of P.A. No. within
the prescribed time or fails to quote it on the relevant document, the A.O. shall impose a
penalty of a sum which shall be minimum of Rs. 500 and maximum of Rs.10,000
u/s.272A.
 SECTION: 139B- Scheme for submission of returns through Tax Return Prepares
(TRP)
PARTICULARS:
To enable any specified class or classes of persons I.E. any person, other than a company
or a person, whose accounts are required to be audited under section 44AB or under any
other law for the time being in force. Who is required to furnish a return of income under
providing that Board may by of a notification, frame a scheme trough a Tax Return
Preparer (TRP) authorized to act as such TRP shall assist the scheme shall specify the
manner in which the also his signature on such return.
The TRP may be an individual other than any officer of a schedule Bank with which
assessee maintains a current account or has other regular dealings or a Chartered
Accountant or a employee of the assessee. The scheme shall provide for authorization,
educational and other qualifications, training required the code of conduct, the duties &
obligation of a TRP.

SECTION: 139C- Rules for facilitating E- FILING OF PETURNS

PARTICULARS:
The Board may make rules providing for a class or classes of persons who may not be
required to furnish documents, statements, receipts, certificate, audited reports or any
other documents, which are otherwise required to be furnished along with the return
under any other provisions of this Act. However, on demand the said documents,
statements, receipts, certificate, audited reports or any other documents are to be
produced before the Assessing Officer.

SECTION: 139D-Powers of CBDT to make rules regarding:

PARTICULARS:
-The class or classes of persons who shall be required to furnish the return of income in
electronic form
- The form and the manner in which the return of income in electronic form may be
furnished
- The documents, statements, receipts. Certificates or audited reports which may not be
furnished along with the return of income in electronic form but have to be produced
before the Assessing Officer on demand.
- The computer resource or the electronic record to which the return of income in
electronic form may be transmitted.
SECTION: 140-Return under section 115WD or section 139, by whom to be signed.
PARTICULARS:

In the case of By whom

Individual Himself
H.U.F. Karta
Company Managing Director
Local Authority Principal Officer
AOP/BOI By a member/principal officer there of.
Any other person Person competent to act on his behalf.

If the person who is required to sign absent from India or for any other reason, it is not
possible for the person to sign the return, then by some other person duly authorized by
him. in the case of a company another director of a company. In the case of a firm
another partner of a firm.
If the person is mentally incapacitated, then
1) In the case of individual: By his guardian or a person competent to act on his
behalf.
2) In the case of H.U.F.: By any other adult member of the family.

SECTION: 140A –Self Assessment

PARTICULARS:
any amount of tax which is payable on the basis of return u/s115WD,u/s 115WH or u/s
139 including any interest payable by the assessee after deducting the amount of any tax
already paid or deducted or collected at source, any relief of tax or deduction of tax
claimed u/s 90 or 91 on amount of tax paid in any specified territory outside India and
any tax credit claimed to be –off in accordance with the provisions of section 115JAA on
behalf of the assessee, must be paid before the filing of the return, and proof of such
payment must be attached with return.
Where any amount paid u/s.140A falls short of tax and interest actually payable by the
assessee, the amount paid u/s.140A shall first be adjusted towards interest and balance
shall be adjusted towards tax. if the assessee does not pay any of tax and interest as
provided above, he will be deemed to be an assessee in default.

SECTION: 142- Inquiry before assessment

PARTICULARS:
Any inquiry made before assessment shall be considered as made under this main section
under different sub-sections.
SECTION 142(1)-Notice to file a return which is not on due-date
PARTICULARS:
Where such a person has not filed a return on due date u/s. 139(1) or before the end of the
relevant assessment year, to file the return by a specified date .This notice could be issued
in the assessment year itself, after the due date or after the end of the relevant assessment
year.

SECTION: 142(1)(II)-Notice to produce such accounts or documents

PARTICULARS:
Such documents/ accounts so desired shall be of a period- not more than 3 years prior to
the previous year.

SECTION: 142(2) - The A.O. may make such inquiries as he considers necessary
PARTICULARS:
For the purpose of obtaining full information in respect of income or loss of any person,
the A.O. may make such inquiry, as he considers necessary.

SECTION :142 (2A,2B,2C1D) – Powers of the A.O> to direct the assessee to get the
accounts specially audited after giving the assessee a reasonable opportunity of
being heard (after approval of commissioner or Chief Commissioner) and other
administrative sections regarding special audit.

PARTICULARS:

SECTION 142(2A)- Appointment of a Chartered Accountant.

SECTION 142(2B) - Notwithstanding the fact that the account are previously audited, yet
they could be a subject to special audit.

SECTION 142(2C)- The Audit report must be furnished to the A.O. by the assessee
within a maximum period of 180 days from the date assessee received the orders
directing him to get the accounts specially audited.