CHAPTER a

8
PROVISIONS FOR
FILING RETURN OF
INCOME AND
SELF ASSESSMENT

LEARNING OUTCOMES
After studying this chapter, you would be able to–
 comprehend as to what is a “return of income”;
 identify the persons who have to compulsorily file a return of income;
 identify and recall the due date for filing return of income for different
assessees;
 examine the consequences of late filing of return;
 compute the interest payable for delayed filing of return of income;
 compute the fee payable for delayed filing of return of income;
 appreciate when a return of income can be revised and the time limit
within which a return has to be revised;
 appreciate when an updated return of income can be filed;
 appreciate the manner of computation of tax payable on the basis of
updated return;
 identify the persons who are required to apply for permanent account
number;

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 a 8.2 INCOME TAX LAW

 identify the transactions in respect of which quoting of PAN is

mandatory;
 appreciate who are the specified classes of persons who can file return
through Tax Return Preparer;
 identify the persons who are authorised to verify the return of income in
the case of different assessees in various circumstances;
 appreciate the requirement to pay self-assessment tax before filing return of
income;
 appreciate the order of adjustment of amount paid by the assessee
against self-assessment tax, fee and interest.

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CHAPTER OVERVIEW

Interest and fee

for default in
Filing of Return Other Provisions
furnishing return
of income
Permanent Account
Number
[Section 139A]
Compulsory filing
of Return of
Quoting of Aadhaar
Income
Number
[Section 139(1)] Interest for default
[Section 139AA]
in furnishing
return of income Fee for non intimation
Return of Loss [Section 234A] of Aadhaar Number
[Section 139(3)] [Section 234H]
Submission of returns
through Tax Return
Preparers
Belated Return [Section 139B]
[Section 139(4)]
Person authorised to
verify return of income
[Section 140]
Revised Return Self-Assessment
[Section 139(5)] Fee for default in [Section 140A]
furnishing return
of income
[Section 234F] Tax on updated
Updated Return return
[Section 139(8A)] [Section 140B]

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1. RETURN OF INCOME
The Income-tax Act, 1961 contains provisions for filing of return of income. Return
of income is the format in which the assessee furnishes information, as self-
declaration, regarding his total income and tax payable. The format for filing of
returns by different assessees is notified by the CBDT. The particulars of income
earned under different heads, gross total income, deductions from gross total
income, total income and tax payable by the assessee are generally required to be
furnished in a return of income. In short, a return of income is the declaration of
income and the resultant tax by the assessee in the prescribed format.

2. COMPULSORY FILING OF RETURN OF INCOME

[SECTION 139(1)]
(1) As per section 139(1), it is compulsory for companies and firms to file a return
of income or loss for every previous year on or before the due date in the
prescribed form.
(2) In case of a person other than a company or a firm, filing of return of income
on or before the due date is mandatory, 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 exceeds the basic exemption limit.
(3) Every person, being a resident other than not ordinarily resident in India
within the meaning of section 6(6), who is not required to furnish a return
under section 139(1), would be required to file a return of income or loss for
the previous year in the prescribed form and verified in the prescribed
manner on or before the due date, if such person, at any time during the
previous year, -
(a) holds, as a beneficial owner or otherwise, any asset (including any
financial interest in any entity) located outside India or has a signing
authority in any account located outside India; or
(b) is a beneficiary of any asset (including any financial interest in any
entity) located outside India.
However, an individual being a beneficiary of any asset (including any
financial interest in any entity) located outside India would not be
required to file return of income under this clause, where, income, if

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any, arising from such asset is includible in the income of the person
referred to in (a) above in accordance with the provisions of the Income-
tax Act, 1961.

Meaning of “beneficial owner” and “beneficiary” in respect of an asset for

the purpose of section 139:

An individual who has provided, directly or indirectly,

Beneficial
consideration for the asset for the immediate or future
Owner
benefit, direct or indirect, of himself or any other person

An individual who derives benefit from the asset during the

Beneficiary previous year and the consideration for such asset has been
provided by any person, other than such beneficiary.

Requirement of filing of return of income as per the fourth and fifth

proviso to section 139(1)

A resident other than not ordinarily resident within the meaning of section 6(6)

who is not required to furnish a return of income u/s 139(1)

AND

who at any time during the P.Y.

A OR B

is a beneficiary of any asset

holds, as beneficial owner has a signing (including financial interest in
or otherwise, any asset authority in any any entity) located outside India
(including financial OR account located
interest in any entity) outside India
located outside India

However, where any income arising from such asset is includible in the hands of the person
specified in (A) in accordance with the provisions of the Act, an individual, being a beneficiary
of such asset, is not required to file return of income under the fourth proviso.

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(4) Further, every person, being an individual or a HUF or an AOP/BOI, whether

incorporated or not, or an artificial juridical person -
− whose 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 Chapter VI-A or section
54/54B/54D/54EC/54F1
− exceeded the basic exemption limit
is required to file a return of his income or income of such other person on
or before the due date in the prescribed form and manner and setting forth
the prescribed particulars.
The basic exemption limit is ` 3,00,000 for individuals/HUF/AOPs/BOIs and
artificial juridical persons under default tax regime under section 115BAC. This
amount denotes the level of total income, which is arrived at after claiming the
admissible deductions under Chapter VI-A i.e., 80CCD(2), 80CCH(2) and 80JJAA
under default tax regime and exemption under section 54/54B/54D/ 54EC or
54F in respect of capital gain. However, the level of total income to be
considered for the purpose of filing return of income is the income before
claiming the admissible deductions under Chapter VI-A and exemption under
section 54/54B/54D/54EC or 54F.
However, in case the assessee has exercised the option of shifting out of the
default tax regime provided under section 115BAC(1A), the basic exemption
limit would be ` 2,50,000 for individuals/HUF/AOPs/ BOIs and artificial
juridical persons, ` 3,00,000 for resident individuals of the age of 60 years but
less than 80 years and ` 5,00,000 for resident individuals of the age of 80 years
or more at any time during the previous year. Also, the assessee would be
eligible for other deductions under Chapter VI-A subject to fulfilling the
stipulated conditions.

(5) Any person other than a company or a firm, who is not required to furnish a
return under section 139(1), is required to file income-tax return in the
prescribed form and manner on or before the due date if, during the previous
year, such person –

1
or 54G or 54GA. (These sections will be dealt with in detail at the Final level)

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(a) has deposited an amount or aggregate of the amounts exceeding

` 1 crore in one or more current accounts maintained with a banking
company or a co-operative bank; or
(b) has incurred expenditure of an amount or aggregate of the amounts
exceeding ` 2 lakh for himself or any other person for travel to a foreign
country; or
(c) has incurred expenditure of an amount or aggregate of the amounts
exceeding ` 1 lakh towards consumption of electricity; or
(d) fulfils such other prescribed conditions.

Accordingly, the CBDT has, vide Notification No. 37/2022 dated 21.4.2022,
inserted Rule 12AB to provide that a person, other than a company or a firm,
who is not required to furnish a return under section 139(1), and who fulfils
any of the following conditions during the previous year has to file their
return of income on or before the due date in the prescribed form and
manner -

(i) if his total sales, turnover or gross receipts, as the case may be, in the
business > ` 60 lakhs during the previous year; or
(ii) if his total gross receipts in profession > ` 10 lakhs during the previous
year; or
(iii) 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 would be required to file
return of income only, if the aggregate of TDS and TCS during the
previous year, in his case, is ` 50,000 or more
(iv) the deposit in one or more savings bank account of the person, in
aggregate, is ` 50 lakhs or more during the previous year.

(6) All such persons mentioned in (1) to (5) above should, 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.

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Meaning of due date:

‘Due date’ means -
(i) 31st October of the assessment year, where the assessee, other than an
assessee referred to in (ii) below, is -
(a) a company,
(b) a person (other than a company) whose accounts are required to be
audited under the Income-tax Act, 1961 or any other law for the time
being in force; or
(c) a partner of a firm whose accounts are required to be audited under
the Income-tax Act, 1961 or any other law for the time being in
force2.
(ii) 30th November of the assessment year, in the case of an assessee
including the partners of the firm 2 being such assessee who is required
to furnish a report referred to in section 92E.
(iii) 31st July of the assessment year, in the case of any other assessee.

Note – Section 92E is not covered within the scope of syllabus of Intermediate Paper
4A: Income-tax Law. Section 139(1) provides an extended due date, i.e., 30th
November of the assessment year, for assessees who have to file a transfer pricing
report i.e., accountant’s report u/s 92E (i.e. assessees who have undertaken
international transactions with associated enterprises). Therefore, reference has been
made to this section, i.e. section 92E, for explaining this provision in section 139(1).

ILLUSTRATION 1
Paras aged 55 years is a resident of India. During the F.Y. 2023-24, interest of
` 2,88,000 was credited to his Non-resident (External) Account with SBI. ` 30,000,
being interest on fixed deposit with SBI, was credited to his saving bank account
during this period. He also earned ` 3,000 as interest on this saving account. Is Paras
required to file return of income?
What will be your answer, if he has incurred ` 3 lakhs as travel expenditure of self
and spouse to US to stay with his married daughter for some time?

2
or the spouse of such partner if the provisions of section 5A applies to such spouse

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SOLUTION
An individual is required to furnish a return of income under section 139(1) if his total
income, before giving effect to the deductions under Chapter VI-A or exemption under
section or section 54/54B/54D/54EC or 54F, exceeds the maximum amount not
chargeable to tax i.e. ` 3,00,000 under default tax regime u/s 115BAC and ` 2,50,000
if exercises the option of shifting out of the default tax regime provided under
section 115BAC(1A) (for A.Y. 2024-25).

Computation of total income of Mr. Paras for A.Y. 2024-25

Particulars `
Income from other sources
Interest earned from Non-resident (External) Account ` 2,88,000 NIL
[Exempt under section 10(4)(ii), assuming that Mr. Paras has been
permitted by RBI to maintain the aforesaid account]
Interest on fixed deposit with SBI 30,000
Interest on savings bank account 3,000
Gross Total Income 33,000
Less: Deduction under Chapter VI-A (not available under the default -
tax regime under section 115BAC)
Total Income 33,000

In case he exercises the option of shifting out of the default tax regime provided
under section 115BAC(1A), he would be eligible for deduction of ` 3,000 under
section 80TTA. Accordingly, his total income would be ` 30,000. However, in both
regimes, total income of ` 33,000, before giving effect to deductions under Chapter
VI-A, would be considered.
Since the total income of Mr. Paras for A.Y.2024-25, before giving effect to the
deductions under Chapter VI-A, is less than the basic exemption limit in both
regimes, he is not required to file return of income for A.Y.2024-25.

Note: In the above solution, interest of ` 2,88,000 earned from Non-resident

(External) account has been taken as exempt on the assumption that Mr. Paras, a
resident, has been permitted by RBI to maintain the aforesaid account. However, in
case he has not been so permitted, the said interest would be taxable. In such a
case, his total income, before giving effect to, inter alia, the deductions under

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Chapter VI-A, would be ` 3,21,000 (` 30,000 + ` 2,88,000 + ` 3,000), which is higher

than the basic exemption limit of ` 3,00,000 or ` 2,50,000, as the case may be.
Consequently, he would be required to file return of income for A.Y.2024-25.

If he has incurred expenditure of ` 3 lakhs on foreign travel of self and spouse, he

has to mandatorily file his return of income on or before the due date under section
139(1), even if his income is less than the basic exemption limit.

3. SPECIFIED CLASS OR CLASSES OF PERSONS TO

BE EXEMPTED FROM FILING RETURN OF
INCOME [SECTION 139(1C)]
(1) Every person who falls within the ambit of the conditions mentioned under
section 139 has to furnish a return of his income on or before the due date
specified under section 139(1).
(2) For reducing the compliance burden of small taxpayers, the Central
Government has been empowered to notify the class or classes of persons
who will be exempted from the requirement of filing of return of income,
subject to satisfying the prescribed conditions.

4. RETURN OF LOSS [SECTION 139(3)]

(1) This section requires the assessee to file a return of loss in the same manner
as in the case of return of income within the time allowed u/s 139(1).
(2) Section 80 requires mandatory filing of return of loss u/s 139(3) on or before
the due date specified u/s 139(1) for carry forward of the following losses -

(a) Business loss u/s 72(1)

(b) Speculation business loss u/s 73(2)
(c) Loss from specified business u/s 73A(2) [In case assesse has exercised
the option of shifting out of the default tax regime provided under
section 115BAC(1A)]
(d) Loss under the head “Capital Gains” u/s 74(1)

(e) Loss from the activity of owning and maintaining race horses u/s 74A(3)

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(3) Consequently, section 139(3) requires filing of return of loss mandatorily

within the time allowed u/s 139(1) for claiming carry forward of losses
mentioned in (2) above.
(4) However, loss under the head “Income from house property” u/s 71B and
unabsorbed depreciation u/s 32 can be carried forward for set-off even
though return of loss has not been filed before the due date.

(5) A return of loss has to be filed by the assessee in his own interest and the non-
receipt of a notice from the Assessing Officer requiring him to file the return
cannot be a valid excuse under any circumstances for the non-filing of such return.

5. BELATED RETURN [SECTION 139(4)]

Any person who has not furnished a return within the time allowed to him under
section 139(1) may furnish the return for any previous year at any time -
(i) before three months prior to the end of the relevant assessment year (i.e.,
31.12.2024 for P.Y. 2023-24); or
(ii) before the completion of the assessment,

whichever is earlier.
Hence, belated return cannot be filed after 31 st December of the relevant
assessment year.

6. REVISED RETURN [SECTION 139(5)]

If any person having furnished a return under section 139(1) or a belated return
under section 139(4), discovers any omission or any wrong statement therein, he
may furnish a revised return at any time –
(i) before three months prior to the end of the relevant assessment year (i.e.,
31.12.2024 for P.Y. 2023-24); or
(ii) before completion of assessment,
whichever is earlier.

Hence, belated return cannot be filed after 31 st December of the relevant

assessment year.

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QUICK RECAP

Mandatory filing of return of income [Section 139(1)]

Person being Person who during Persons who during
Resident Individual, HUF, the P.Y. - the P.Y. -
other than AOPs or BOIs - has deposited > ` 1 - has total sales,
RNOR, having and artificial crore in one or more turnover or gross
any asset juridical persons current accounts with receipts in the
located having total bank or a co- business > ` 60 lakhs
outside India income operative bank; or
Company - has total gross
or signing exceeding basic
- has incurred exp. of receipts in profession
and authority in exemption limit
> ` 2 lakh for himself > ` 10 lakhs
any account before giving
Firm or any other person
located effect to the - has aggregate TDS
outside India provisions of for travel to a foreign and TCS credit ≥
or is Chapter VI-A or country; or ` 25,000 (` 50,000 in
beneficiary of exemption u/s - has incurred exp of case of senior citizen)
any asset 54/54B/54D/ > ` 1 lakh towards - has deposit in one or
located 54EC or 54F electricity more savings bank
outside India consumption; account ≥ ` 50 lakhs

Due date of filing of return

30th November of A.Y 31st October of A.Y. 31st July of
• assessee, including partner of the •Company A.Y.
firm, being such assessee who is •Person other than company, whose accounts are • Any other
required to furnish a report referred required to be audited assessee
to in section 92E. •A partner of a firm, whose accounts are required to
be audited

Loss Return under section 139(3)

To be filed on or before the due date under section 139(1) for carry forward of
Loss from Loss from Loss from the activity
Business Loss under the
speculation specified of owning and
loss u/s head "Capital
business u/s business u/s maintaning race
72(1) Gains" u/s 74(1)
73(2) 73A(2) horses u/s 74A(3)
Belated Return under section 139(4)
If return not filed within the time specified u/s 139(1), the assessee can file belated
return u/s 139(4), at any time before
Three months prior to the end of the
Relevant Assessment Year
OR Completion of the Assessment

Whichever is earlier
Revised Return under Section 139(5)
Return filed u/s 139(1) or u/s 139(4) can be revised u/s 139(5), if any omission or
any wrong statement is discovered by the assessee, at any time before
Three months prior to the end of the
OR Completion of the Assessment
Relevant Assessment Year
Whichever is earlier

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ILLUSTRATION 2
Explain with brief reasons whether the return of income can be revised under section
139(5) of the Income-tax Act, 1961 in the following cases:
(i) Belated return filed under section 139(4).

(ii) Return already revised once under section 139(5).

(iii) Return of loss filed under section 139(3).
SOLUTION
Any person who has furnished a return under section 139(1) or 139(4) can file a
revised return at any time before three months prior to the end of the relevant
assessment year or before the completion of assessment, whichever is earlier, if he
discovers any omission or any wrong statement in the return filed earlier.
Accordingly,
(i) A belated return filed under section 139(4) can be revised.
(ii) A return revised earlier can be revised again as the first revised return replaces
the original return. Therefore, if the assessee discovers any omission or wrong
statement in such a revised return, he can furnish a second revised return
within the prescribed time i.e. at any time before three months prior to the
end of the relevant assessment year or before the completion of assessment,
whichever is earlier. It implies that a return of income can be revised more
than once within the prescribed time.
(iii) A return of loss filed under section 139(3) is deemed to be return filed under
section 139(1), and therefore, can be revised under section 139(5).

7. INTEREST FOR DEFAULT IN FURNISHING

RETURN OF INCOME [SECTION 234A]
(1) Interest under section 234A is attracted for failure to file a return of income
on or before the due date under section 139(1) i.e., interest 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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(2) Simple interest @1% per month or part of the month is payable 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 the date of furnishing of the return
after due date
Where no return is furnished the date of completion of assessment

(3) The interest has to be calculated on the amount of tax on total income as
determined under section 143(1) and where a regular assessment is made, on
the amount of the tax on the total income determined under regular
assessment, as reduced by the advance tax paid and any tax deducted or
collected at source, any relief of tax allowed under section 89 and any tax
credit allowed to be set-off in accordance with section 115JD, in case the
assessee has exercised the option of shifting out of the default tax regime
provided under section 115BAC(1A).
(4) No interest under section 234A shall be charged on self-assessment tax paid
by the assessee on or before the due date of filing of return.
(5) The interest payable under section 234A shall be reduced by the interest, if
any, paid on self-assessment under section 140A towards interest chargeable
under section 234A.
(6) Tax on total income as determined under section 143(1) would not include
the additional income-tax, if any, payable under section 140B or section 143.
(7) Tax on total income determined under regular assessment would not include
the additional income-tax payable under section 140B.

Note – Section 143(1) provides that if any sum is found due on the basis of a return of
income after adjustment of advance tax, relief of tax allowed under section 89, tax
deducted at source, tax collection at source and self-assessment tax, an intimation would
be sent to the assessee and such intimation is deemed to be a notice of demand issued
under section 156. If any refund is due on the basis of the return, it shall be granted to
the assessee and intimation to this effect would be sent to the assessee. Where no tax or
refund is due, the acknowledgement of the return is deemed to be intimation under
section 156.

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8. SELF-ASSESSMENT [SECTION 140A]

(1) Payment of tax, interest and fee before furnishing return of income
[Section 140A(1)]
Where any tax is payable on the basis of any return required to be furnished
under, inter alia, section 139, after taking into account -
(i) the amount of tax, already paid, under any provision of the Income-tax
Act, 1961
(ii) the tax deducted or collected at source
(iii) any relief of tax claimed under section 89
(iv) any tax credit claimed to set-off in accordance with the provisions of
section 115JD, in case the assessee has exercised the option of shifting
out of the default tax regime provided under section 115BAC(1A); and
(v) any tax or 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. The return has to be accompanied by the proof of payment of such
tax, interest and fee.
(2) Order of adjustment of amount paid by the assessee
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, if any, shall be adjusted towards the tax payable.
(3) Interest under section 234A [Section 140A(1A)]
For the above purpose, interest payable under section 234A shall be
computed on the amount of tax on the total income as declared in the return,
as reduced by the amount of-
(i) advance tax paid, if any;
(ii) any tax deducted or collected at source;
(iii) any relief of tax claimed under section 89

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(iv) any tax credit claimed to be set-off in accordance with the provisions
of section 115JD, in case the assessee has exercised the option of
shifting out of the default tax regime provided under section
115BAC(1A).
(4) Interest under section 234B [Section 140A(1B)]
Interest payable under section 234B shall be computed on the assessed tax
or on the amount by which the advance tax paid falls short of the assessed
tax.
For this purpose “assessed tax” means the tax on total income declared in the
return as reduced by the amount of

- tax deducted or collected at source on any income which forms part of

the total income;
- any relief of tax claimed under section 89
- any tax credit claimed to be set-off in accordance with the provisions
of section 115JD, in case the assessee has exercised the option of
shifting out of the default tax regime provided under section
115BAC(1A).
(5) Consequence of failure to pay tax, interest or fee [Section 140A(3)]
If any assessee fails to pay the whole or any part of such of tax or interest or
fee, he shall be deemed to be an assessee in default in respect of such tax or
interest or fee remaining unpaid and all the provisions of this Act shall apply
accordingly.

9. UPDATED RETURN OF INCOME [SECTION

139(8A)]
(1) Option to furnish updated return - Any person may 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.

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This is irrespective of 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.
For example, an updated return for A.Y. 2023-24 can be filed till 31.3.2026.
(2) Non applicability of the provisions of updated return – The provisions of
updated return would not apply, if the updated return of such person for that
assessment year –
(i) is a loss return; or
(ii) 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
(iii) 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).
(3) Updated return can be filed if original return is a loss return and updated
return is a return of income - If any person has a loss in any previous year
and has furnished a return of loss on or before the due date of filing return
of income under section 139(1), he shall be allowed to furnish an updated
return if such updated return is a return of income.

For example if Mr. X has furnished his return of loss for A.Y. 2023-24 on
31.5.2023 consisting of ` 5,00,000 as business loss, he can furnish an updated
return for A.Y. 2023-24 upto 31.3.2026 if such updated return is a return of
income.
(4) Updated return to be furnished for subsequent previous year in case (3)
above - If the loss or any part thereof carried forward under Chapter VI or
unabsorbed depreciation carried forward under section 32(2) or tax credit
carried forward under section 115JD is to be reduced for any subsequent
previous year as a result of furnishing of updated return of income for a
previous year, an updated return is required to be furnished for each such
subsequent previous year [In case assessee has exercised the option of
shifting out of the default tax regime provided under section 115BAC(1A)].

(5) Circumstances in which updated return cannot be furnished: No updated

return shall be furnished in the following scenarios –

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S.No. Scenarios Updated return

cannot be furnished
(i) Where a person has furnished an updated
return under this sub-section for the relevant
assessment year.
(ii) Where any proceeding for assessment, for such relevant
reassessment, recomputation, or revision of Assessment Year.
income is pending or has been completed for
the relevant assessment year in his case.

(6) Updated return for the relevant assessment year cannot be furnished by such
person or belongs to such class of persons, as may be notified by the Board
in this regard.

Note - There are other circumstances also in which updated return cannot be
furnished for the relevant assessment year. For example, where prosecution
proceedings are initiated under the relevant provisions of the Income-tax Act, 1961.
Those circumstances will be dealt with at Final level.

10. TAX ON UPDATED RETURN [SECTION 140B]

(1) Payment of tax, additional tax, interest and fee before furnishing
updated return of income
(a) In a case where no return is furnished earlier [Section 140B(1)]

(I) Tax to be paid along with interest and fee before furnishing of
updating return:
Where no return of income under section 139(1) or 139(4) 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.

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The updated return shall be accompanied by proof of payment of such

tax, additional income-tax, interest and fee.
(II) Manner of computation of tax payable on the basis of updated
return
The tax payable is to be computed after taking into account the
following -

(i) the amount of tax, if any, already paid, as advance tax;

(ii) the tax deducted or collected at source;
(iii) any relief of tax claimed under section 89; and
(iv) any tax credit claimed to set-off in accordance with the provisions of
section 115JD, in case the assessee has exercised the option of shifting
out of the default tax regime provided under section 115BAC(1A).
(III) Interest under section 234A if no earlier return has been furnished
In a case, where no earlier return has been furnished, the interest
payable under section 234A has to be computed on the amount of the
tax on the total income as declared in the updated return under section
139(8A), in accordance with the provisions of section 140A(1A).
(b) In a case where return is furnished earlier [Section 140B(2)]

(I) Tax to be paid along with interest before furnishing updated

return:
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.
The updated return shall be accompanied by proof of payment of such
tax, additional income-tax and interest.

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(II) Manner of computation of tax payable on the basis of updated

return:
The tax payable has to be computed after taking into account the
following -
(i) the amount of relief or tax referred to in section 140A(1), the credit
for which has been taken in the earlier return;

(ii) the tax deducted or collected at source, in accordance with the

provisions of Chapter XVII-B, 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;
(iii) any tax credit claimed, to set-off in accordance with the provisions
of section 115JD, which has not been claimed in the earlier return,
in case the assessee has exercised the option of shifting out of the
default tax regime provided under section 115BAC(1A); and
the aforesaid tax would be increased by the amount of refund, if any,
issued in respect of such earlier return.
(III) Interest under section 234B where earlier return has been furnished
[Section 140B(4)]
In a case where an earlier return has been furnished, interest payable
under section 234B has to be computed on the assessed tax.
“Assessed tax” means the tax on the total income as declared in the
updated return to be furnished under section 139(8A), after taking into
account the following:

(i) the amount of relief or tax referred to in section 140A(1), the credit
for which has been taken in the earlier return, if any;
(ii) the tax deducted or collected at source, in accordance with the
provisions of Chapter XVII-B, 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;

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(iii) any tax credit claimed, to set-off in accordance with the provisions
of section 115JD, which has not been claimed in the earlier return, in
case the assessee has exercised the option of shifting out of the default
tax regime provided under section 115BAC(1A); and
the aforesaid tax would be increased by the amount of refund, if any,
issued in respect of such earlier return.

(IV) Interest under section 234C if earlier return has been furnished
Interest payable under section 234C, where an earlier return has been
furnished, has to be computed after taking into account the total
income furnished in the updated return as returned income.
(2) Additional income-tax payable at the time of updated return [Section
140B(3)]
The additional income-tax payable at the time of furnishing the updated
return under section 139(8A) would be –

S.No. Time of furnishing updated return Additional Income-

tax Payable
(i) If such return is furnished after expiry 25% of aggregate of
of the time available under section tax and interest
139(4) or 139(5) of the assessment year payable, as determined
and before completion of the period of in (1) above
12 months from the end of the relevant
assessment year;
(ii) If such return is furnished after the 50% of aggregate of
expiry of 12 months from the end of the tax and interest
relevant assessment year but before payable, as determined
completion of the period of 24 months in (1) above
from the end of the relevant
assessment year.

Computation of Additional income-tax

For the purpose of computation of Additional income-tax”,
- tax would include surcharge and cess, by whatever name called, on such
tax.

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- the interest payable would be interest chargeable under any provision

of the Act, on the income as per updated return furnished under section
139(8A), as reduced by interest paid in the earlier return, if any.
However, the interest paid in the earlier return would be considered to
be nil, if no earlier return has been furnished.

Note - An updated return furnished under section 139(8A) would be regarded

as defective return as referred u/s 139(9) unless such return of income is
accompanied by the proof of payment of tax as required under section 140B.

(3) Power to CBDT to issue guidelines

In case of any difficulty arises in giving effect to the provisions of this section,
the CBDT may issue guidelines for the purpose of removing the difficulty, with
the approval of the Central Government. Every guideline issued shall be laid
before each House of Parliament.

11. DEFECTIVE RETURN [SECTION 139(9)]

(1) Under this section, the Assessing Officer has the power to call upon the
assessee to rectify a defective return.
(2) Where the Assessing Officer considers that the return of income furnished by
the assessee is defective, he may intimate the defect to the assessee and give
him an opportunity to rectify the defect within 15 days from the date of
intimation. The Assessing Officer has the discretion to extend the time period
beyond 15 days, on an application made by the assessee in this behalf. The
period of 15 days will have to be reckoned from the date on which the
communication is served upon the assessee.
(3) If the defect is not rectified within the period of 15 days or such further
extended period, the return would be treated as an invalid return. The
consequential effect would be the same as if the assessee had failed to furnish
the return.
(4) Where, however, the assessee rectifies the defect after the expiry of 15 days
or the further extended period, but before the assessment is made, the
Assessing Officer may condone the delay and treat the return as a valid return.

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(5) A return of income would be regarded as defective unless the annexures,

statements and columns therein relating to computation of income
chargeable under each head of income, gross total income and total income
have been duly filled in.
(6) A return of income u/s 139 would also be regarded as defective if it is not
accompanied by proof of payment of taxes, whether by way of advance tax
or self-assessment tax.

12. FEE FOR DEFAULT IN FURNISHING RETURN OF

INCOME [SECTION 234F]
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.

13. PERMANENT ACCOUNT NUMBER (PAN)

[SECTION 139A]
(1) Sub-section (1) requires the following persons mentioned in column (2), who
have not been allotted a permanent account number (PAN), to apply to the
Assessing Officer within the time specified in column (3) for the allotment of
a PAN –

(1) (2) (3)

Persons required to apply for PAN Time limit for making such
application (Rule 114)
(i) Every person, if his total income or the On or before 31st May of the
total income of any other person in assessment year for which
respect of which he is assessable under such income is assessable
the Act during any previous year exceeds
the maximum amount which is not
chargeable to income-tax

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(ii) Every person carrying on any business or Before the end of that
profession whose total sales, turnover or financial year.
gross receipts are or is likely to exceed
` 5 lakhs in any previous year
(iii) Every person being a resident, other than On or before 31st May of the
an individual, which enters into a immediately following
financial transaction of an amount financial year
aggregating to ` 2,50,000 or more in a
financial year
(iv) Every person who is a managing director, On or before 31st May of the
director, partner, trustee, author, immediately following
founder, karta, chief executive officer, financial year in which the
principal officer or office bearer of any person referred in (iii) enters
person referred in (iii) above or any into financial transaction
person competent to act on behalf of specified therein.
such person referred in (iii) above

Further, 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 for
PAN to the Assessing Officer. Accordingly, Rule 114BA has been inserted to
prescribe the following transactions:

Person required to apply for Time limit for making

PAN [Rule 114BA] application for PAN [Rule 114]
(i) Every person, who intends to deposit At least 7 days before the date on
cash in his one or more accounts which he intends to deposit cash
with a banking company, co- over the specified limit, i.e., ` 20
operative bank or post office, if the lakh or more.
cash deposit or the aggregate
amount of cash deposit in such
accounts during a financial year is
` 20 lakh or more
(ii) Every person, who intends to At least 7 days before the date on
withdraw cash from his one or more which he intends to withdraw
accounts with a banking company, cash over the specified limit, i.e.,
co-operative bank or post office, if ` 20 lakh or more.
the cash withdrawal or the
aggregate amount of cash

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withdrawal from such accounts

during a financial year is ` 20 lakh
or more
(iii) Any person, who intends to open a At least 7 days before the date on
current account or cash credit which he intends to open such
account with a banking company or a account.
co-operative bank, or a post Office

(2) The Central Government is empowered to specify, by notification in the

Official Gazette, any class or classes of persons by whom tax is payable under
the Act or any tax or duty is payable under any other law for the time being
is force. Such persons are required to apply within such time as may be
mentioned in that notification to the Assessing Officer for the allotment of a
PAN [Sub-section (1A)].
(3) For the purpose of collecting any information which may be useful for or
relevant to the purposes of the Act, the Central Government may notify any
class or classes of persons, and such persons shall within the prescribed time,
apply to the Assessing Officer for allotment of a PAN [Sub-section (1B)].
(4) The Assessing Officer, having regard to the nature of transactions as may be
prescribed, may also allot a PAN to any other person (whether any tax is
payable by him or not) in the manner and in accordance with the procedure
as may be prescribed [Sub-section (2)].
(5) Any person, other than the persons mentioned in (1) or (4) above, may apply
to the Assessing Officer for the allotment of a PAN and the Assessing Officer
shall allot a PAN to such person immediately.
(6) Such PAN comprises of 10 alphanumeric characters.

(7) Quoting of PAN is mandatory in all documents pertaining to the following

prescribed transactions [Section 139A(5)]:
(a) in all returns to, or correspondence with, any income-tax authority;
(b) in all challans for the payment of any sum due under the Act;
(c) in all documents pertaining to such transactions entered into by him, as
may be prescribed by the CBDT in the interests of revenue. In this
connection, CBDT has notified the following transactions vide Rule
114B, namely:

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S. No. Nature of transaction Value of transaction

1. Sale or purchase of a motor vehicle All such transactions
or vehicle, as defined in the Motor
Vehicles Act, 1988 which requires
registration by a registering
authority under that Act, other than
two wheeled vehicles.
2. Opening an account [other than a All such transactions
time-deposit referred to at Sl. No.12
and a Basic Savings Bank Deposit
Account] with a banking company or
a co-operative bank to which the
Banking Regulation Act, 1949
applies (including any bank or
banking institution referred to in
section 51 of that Act).
3. Making an application to any banking All such transactions
company or a co-operative bank to
which the Banking Regulation Act,
1949, applies (including any bank or
banking institution referred to in
section 51 of that Act) or to any other
company or institution, for issue of a
credit or debit card.
4. Opening of a demat account with a All such transactions
depository, participant, custodian of
securities or any other person
registered under section 12(1A) of
the SEBI Act, 1992.
5. Payment to a hotel or restaurant Payment in cash of an
against a bill or bills at any one time. amount exceeding ` 50,000.
6. Payment in connection with travel to Payment in cash of an
any foreign country or payment for amount exceeding
purchase of any foreign currency at ` 50,000.
any one time.
7. Payment to a Mutual Fund for Amount exceeding
purchase of its units ` 50,000

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8. Payment to a company or an Amount exceeding

institution for acquiring debentures ` 50,000
or bonds issued by it.
9. Payment to the Reserve Bank of India Amount exceeding
for acquiring bonds issued by it. ` 50,000
10. Deposit with a banking company or Cash deposits exceeding
a co-operative bank to which the ` 50,000 during any one
Banking Regulation Act, 1949, day.
applies (including any bank or
banking institution referred to in
section 51 of that Act); or
post office
11. Purchase of bank drafts or pay orders Payment in cash of an
or banker’s cheques from a banking amount exceeding ` 50,000
company or a co-operative bank to during any one day.
which the Banking Regulation Act,
1949 applies (including any bank or
banking institution referred to in
section 51 of that Act).
12. A time deposit with, - Amount exceeding
(i) a banking company or a co- ` 50,000 or aggregating to
operative bank to which the more than ` 5 lakh during a
Banking Regulation Act, 1949 financial year.
applies (including any bank or
banking institution referred to
in section 51 of that Act);
(ii) a Post Office;
(iii) a Nidhi referred to in section
406 of the Companies Act, 2013;
or
(iv) a non-banking financial company
which holds a certificate of
registration under section 45-IA of
the Reserve Bank of India Act,
1934, to hold or accept deposit
from public.

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13. Payment for one or more pre-paid Payment in cash or by way

payment instruments, as defined in of a bank draft or pay order
the policy guidelines for issuance or banker’s cheque of an
and operation of pre-paid payment amount aggregating to
instruments issued by Reserve Bank more than ` 50,000 in a
of India under the Payment and financial year.
Settlement Systems Act, 2007, to a
banking company or a co-operative
bank to which the Banking
Regulation Act, 1949, applies
(including any bank or banking
institution referred to in section 51
of that Act) or to any other company
or institution.
14. Payment as life insurance premium Amount aggregating to
to an insurer as defined in the more than ` 50,000 in a
Insurance Act, 1938. financial year.
15. A contract for sale or purchase of Amount exceeding ` 1 lakh
securities (other than shares) as per transaction.
defined in section 2(h) of the
Securities Contracts (Regulation)
Act, 1956.
16. Sale or purchase, by any person, of Amount exceeding ` 1 lakh
shares of a company not listed in a per transaction.
recognised stock exchange.
17. Sale or purchase of any immovable Amount exceeding ` 10
property. lakh or valued by stamp
valuation authority
referred to in section 50C
at an amount exceeding
` 10 lakh
18. Sale or purchase, by any person, of Amount exceeding ` 2 lakh
goods or services of any nature per transaction
other than those specified at Sl. No.
1 to 17 of this Table, if any.

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Minor to quote PAN of parent or guardian

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, as the case may be, in the
document pertaining to the said transaction.
Declaration by a person not having PAN
Further, any person who does not have a PAN and who enters into any
transaction specified in this rule, shall make a declaration in Form No.60
giving therein the particulars of such transaction either in paper form or
electronically under the electronic verification code in accordance with the
procedures, data structures, and standards specified by the Principal Director
General of Income-tax (Systems) or Director General of Income-tax (Systems).
Non-applicability of Rule 114B
The provisions of this rule shall not apply to the following class or classes of
persons, namely:-

(i) the Central Government, the State Governments and the Consular
Offices;
(ii) the non-residents referred to in section 2(30) in respect of the
transactions other than a transaction referred to at Sl. No. 1 or 2 or 4 or
7 or 8 or 10 or 12 or 14 or 15 or 16 or 17 of the Table.
Meaning of certain phrases:

Phrase Inclusion
(1) Payment in Payment towards fare, or to a travel agent or a tour
connection operator, or to an authorized person as defined in
with travel section 2(c) of the FEMA, 1999
(2) Travel agent A person who makes arrangements for air, surface or
or tour maritime travel or provides services relating to
operator accommodation, tours, entertainment, passport, visa,
foreign exchange, travel related insurance or other
travel related services either severally or in package
(3) Time deposit Any deposit which is repayable on the expiry of a
fixed period.

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(8) If there is a change in the address or in the name and nature of the business
of a person, on the basis of which PAN was allotted to him, he should intimate
such change to the Assessing Officer [Section 139A (5)(d)].
(9) Every person who receives any document relating to any transaction cited
above shall ensure that the PAN or the Aadhaar number is duly quoted in the
document.

(10) Intimation of PAN to person deducting or collecting tax at source

Every person who receives any amount from which tax has been deducted at
source shall intimate his PAN to the person responsible for deducting such
tax [Section 139A(5A)].
Similarly, every buyer or licensee or lessee referred to in section 206C shall
intimate his PAN to the person responsible for collecting such tax [Section
139A(5C)]
(11) Quoting of PAN in certain documents
Where any amount has been paid after deducting tax at source, the person
deducting tax shall quote the PAN of the person to whom the amount was
paid in the following documents:
(i) in the statement furnished under section 192(2C) giving particulars of
perquisites or profits in lieu of salary provided to any employee;
(ii) in all certificates for tax deducted issued to the person to whom
payment is made;

(iii) in all returns prepared and delivered or caused to be delivered to any

income-tax authority in accordance with the provisions of section 206;
(iv) in all statements prepared and delivered or caused to be delivered in
accordance with the provisions of section 200(3) [Section 139A(5B)].
Also, every person collecting tax in accordance with the provisions of section
206C shall quote PAN of every buyer or licensee or lessee in the following
documents:
(i) in all certificates issued for tax collected in accordance with the
provisions of section 206C(5);

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(ii) in all returns prepared and delivered or caused to be delivered to any

income-tax authority in accordance with the provisions of section
206C(5A)/(5B);
(iii) in all statements prepared and delivered or caused to be delivered in
accordance with the provisions of section 206C(3) [Sub-section (5D)].
(12) Requirement to intimate PAN and quote PAN not to apply to certain
persons
Section 139A(5A)/(5B) shall not apply to a person who –
(i) does not have taxable income or
(ii) who is not required to obtain PAN
if such person furnishes a declaration under section 197A in the prescribed
form and manner that the tax on his estimated total income for that previous
year will be Nil.
(13) 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 Aadhaar Number in lieu of the PAN, if he
- has not been allotted a PAN but possesses the Aadhaar number
- has been allotted a PAN and has intimated his Aadhaar number to
prescribed authority in accordance with the requirement contained in
section 139AA(2).
PAN would be allotted in prescribed manner to a person who has not been
allotted a PAN but possesses Aadhaar number.
Accordingly, the CBDT has, vide Notification No. 59/2019, dated 30.8.2019,
provide that any person, who has not been allotted a PAN but possesses the
Aadhaar number and has furnished or intimated or quoted his Aadhaar
number in lieu of the PAN, shall be deemed to have applied for allotment of
PAN and he shall not be required to apply or submit any documents.
Further, any person, who has not been allotted a PAN but possesses the
Aadhaar number may apply for allotment of the PAN under section
139A(1)/(1A)/(3) by intimating his Aadhaar number and he shall not be
required to apply or submit any documents.

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(14) Quoting and authentication of PAN or Aadhaar number

(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 and also 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 and also ensure that such PAN or Aadhaar
number is so authenticated [Section 139A(6B)].
Accordingly, Rule 114BB has been inserted 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. No. Nature of transaction Person
1. Cash deposit or deposits aggregating A bank or a co-operative
to ` 20 lakhs or more in a financial bank or Post Master
year, in one or more account of a General of a Post Office.
person with a bank or a co-operative
bank or Post Office.
2. Cash withdrawal or withdrawals A bank or a co-operative
aggregating to ` 20 lakhs or more in bank or Post Master
a financial year, in one or more General of a Post Office.
account of a person with a bank or a
co-operative bank or Post Office
3. Opening of a current account or cash A bank or a co-operative
credit account by a person with a bank or Post Master
bank or a co-operative bank or Post General of a Post Office.
Office

Note – Quoting of PAN or Aadhaar number is, however, not required in case
where the person depositing money as per Sl. No.1 or withdrawing money as
per Sl. No.2 or opening a current account or cash credit account as per Sl. No.3
is the Central Government, the State Government or the Consular Office.

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(15) Power to make rules

The CBDT is empowered to make rules with regard to the following:
(a) the form and manner in which an application for PAN may be made and
the particulars to be given therein;
(b) the categories of transactions in relation to which PAN or the Aadhaar
number, as the case may be, is required to be quoted on the related
documents;
(c) the categories of documents pertaining to business or profession in
which PAN or the Aadhaar number, as the case may be, shall be quoted
by every person;
(d) the class or classes of persons to whom the provisions of this section
shall not apply;
(e) the form and manner in which a person who has not been allotted a
PAN shall make a declaration;
(f) the manner in which PAN or the Aadhaar number, as the case may be,
shall be quoted for transactions cited in (b) above;
(g) the time and manner in which such transactions cited in (b) above shall
be intimated to the prescribed authority.
(16) Meaning of certain terms

Term Meaning
(i) Aadhaar An identification number issued to an individual by
number the Authority on receipt of the demographic
information and biometric information after
verifying the information by the authority. It
includes any alternative virtual identity generated
by the Authority in the prescribed manner.
(ii) Authentication The process by which the PAN or Aadhaar
number along with demographic information or
biometric information of an individual is
submitted to the income-tax authority or such
other prescribed authority or agency for its
verification and such authority or agency verifies
the correctness, or the lack thereof, on the basis
of information available with it.

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(17) Penalty for failure to comply with the provisions of section 139A
[Section 272B]

Section Default Penalty

272B(1) Failure to comply with the provisions of section ` 10,000
139A
272B(2) Failure to quote PAN/Aadhaar number in any ` 10,000 for
document referred to in section 139A(5)(c) each such
Failure to intimate PAN/Aadhaar number as default
required by section 139A(5A)/(5C)
Knowingly quoting or intimating a number which is false
272B(2A) Failure to quote PAN/Aadhaar Number in ` 10,000 for
documents referred to in section 139A(6A) or each such
authenticate such number in accordance with the default
provisions contained therein
272B(2B) (i) Failure to ensure that PAN/Aadhaar Number is ` 10,000 for
duly quoted in the documents relating to each such
transactions referred to in section 139A(5)(c) or default
section 139A(6A)
(ii) Failure to ensure that PAN/Aadhaar Number
has been duly authenticated in respect of
transactions referred to under section 139A(6A)
Note – It is necessary to give an opportunity to be heard to the person on
whom the penalty under section 272B is proposed to be imposed.

14. QUOTING OF AADHAAR NUMBER

[SECTION 139AA]
(1) Mandatory quoting of Aadhaar Number
Every person who is eligible to obtain Aadhaar Number is required to
mandatorily quote Aadhaar Number:
(a) in the application form for allotment of Permanent Account Number
(PAN)

(b) in the return of income

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Quoting of Aadhaar Number mandatory in returns filed on or after

1.4.2019 [Circular No. 6/2019 dated 31.03.2019]
As per section 139AA(1)(ii), with effect from 01.07.2017, every person who is
eligible to obtain Aadhaar number has to quote Aadhaar number in the return
of income.
The Apex Court in a series of judgments has upheld the validity of section
139AA. Consequently, with effect from 01.04.2019, the CBDT has clarified that
it is mandatory to quote Aadhaar number while filing the return of income
unless specifically exempted as per any notification issued under section
139AA(3) [detailed in point no. (5) in the next page]. Thus, returns being filed
either electronically or manually on or after 1.4.2019 cannot be filed without
quoting the Aadhaar number.

(2) Mandatory quoting of Enrolment Id, where person does not have Aadhaar
Number
If a person does not have Aadhaar Number, he is required to quote Enrolment
ID of Aadhaar application form issued to him at the time of enrolment in the
application form for allotment of Permanent Account Number (PAN) or in the
return of income furnished by him.
Enrolment ID means a 28 digit Enrolment Identification Number issued to a
resident at the time of enrolment
(3) Intimation of Aadhaar Number to prescribed Authority
Every person who has been allotted Permanent Account Number (PAN) as on
1st July, 2017, and who is eligible to obtain Aadhaar Number, shall intimate
his Aadhaar Number to prescribed authority on or before 31st March, 2022.
Notwithstanding the last date of intimating/linking of Aadhaar Number with
PAN being 31.03.2022, it is clarified that w.e.f. 01.04.2019, it is mandatory to
quote and link Aadhaar number while filing the return of income, either
manually or electronically, unless specifically exempted in cases detailed in
point (5) below.
(4) Consequences of failure to intimate Aadhaar Number
If a person fails to intimate the Aadhaar Number, the permanent account
Number (PAN) allotted to such person shall be made inoperative after the
date so notified in the prescribed manner.

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Accordingly, Rule 114AAA specifies the manner of making permanent

account number inoperative.

Sub- Provision
Rule
(1) If a person, who has been allotted PAN as on 1st July, 2017 and
is required to intimate his Aadhaar number under section
139AA(2), has failed to intimate the same on or before 31st March,
2022, the PAN of such person would become inoperative and he
would be liable for payment of fee in accordance with section 234H
read with Rule 114(5A) i.e., ` 1,0003.
(2) Where such person who has not intimated his Aadhaar number
on or before 31st March, 2022, has intimated his Aadhaar number
under section 139AA(2) after 31st March, 2022, after payment of
fee specified in section 234H read with Rule 114(5A), his PAN
would become operative within 30 days from the date of
intimation of Aadhaar number.
(3) A person, whose PAN has become inoperative, would be liable for
following further consequences for the period commencing from
the date as specified under (4) below till the date it becomes
operative –
(i) no refund of any amount of tax or part thereof, due under
the provisions of the Act;
(ii) interest would not be payable on such refund for the period,
beginning with the date specified under (4) below and
ending with the date on which it becomes operative;
(iii) where tax is deductible at source in case of such person, such
tax shall be deducted at higher rate, in accordance with
provisions of section 206AA;
(iv) where tax is collectible at source in case of such person, such
tax shall be collected at higher rate, in accordance with
provisions of section 206CC:
(4) The consequences in (3) above would be effective from the date
specified by the Board i.e., 1.7.2023 [Circular No. 3/2023 dated
28th March, 2023]

3
The fee was ` 500 if Aadhaar number was intimated on or before 30.06.2022

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(5) Clarification on consequences of PAN becoming inoperative

These consequences would be with effect from 1.7.2023 and continue till the
PAN becomes operative. A fee of ` 1,000 has to be paid to make the PAN
operative by intimating the Aadhaar number.
The consequences of PAN becoming inoperative would not be applicable to
those persons who have been provided exemption from intimating Aadhaar
number detailed in point (6) below.
(6) Provision not to apply to certain persons or class of persons
The provisions of section 139AA relating to quoting of Aadhaar Number
would, however, not apply to such person or class or classes of persons or
any State or part of any State as may be notified by the Central Government.
Accordingly, the Central Government has, vide Notification No. 37/2017
dated 11.05.2017 effective from 01.07.2017, notified that the provisions of
section 139AA relating to quoting of Aadhaar Number would not apply to an
individual who does not possess the Aadhaar number or Enrolment ID and is:
(i) residing in Assam, Jammu & Kashmir and Meghalaya;
(ii) a non-resident as per Income-tax Act, 1961;
(iii) of the age of 80 years or more at any time during the previous year;

(iv) not a citizen of India

15. SCHEME FOR SUBMISSION OF RETURNS

THROUGH TAX RETURN PREPARERS
[SECTION 139B]
(1) This section provides that, for the purpose of enabling any specified class or
classes of persons to prepare and furnish their returns of income, the CBDT
may notify a scheme to provide that such persons may furnish their returns
of income through a Tax Return Preparer authorised to act as such under the
Scheme.
(2) The Tax Return Preparer shall assist the persons furnishing the return in a
manner that will be specified in the Scheme and shall also affix his signature
on such return.

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(3) A Tax Return Preparer means any individual, other than

(i) any officer of a scheduled bank with which the assessee maintains a
current account or has other regular dealings.
(ii) any legal practitioner who is entitled to practice in any civil court in India.
(iii) an accountant
(iv) an employee of the ‘specified class or classes of persons’.
who has been authorized to act as a Tax Return Preparer under the Scheme.
(4) The “specified class or classes of persons” for this purpose means any
person other than a company or a person whose accounts are required to be
audited under section 44AB (tax audit) or under any other existing law, who
is required to furnish a return of income under the Act.
(5) The Scheme notified under the said section may provide for the following -
(i) the manner in which and the period for which the Tax Return Preparers
shall be authorised,
(ii) the educational and other qualifications to be possessed, and the
training and other conditions required to be fulfilled, by a person to act
as a Tax Return Preparer,
(ii) the code of conduct for the Tax Return Preparers,
(iii) the duties and obligations of the Tax Return Preparers,
(iv) the circumstances under which the authorisation given to a Tax Return
Preparer may be withdrawn, and
(v) any other relevant matter as may be specified by the Scheme.
(6) Accordingly, the CBDT has, in exercise of the powers conferred by this section,
framed the Tax Return Preparer Scheme, 2006, which came into force from
1.12.2006.

Particulars Contents
Applicability of The scheme is applicable to all eligible persons.
the scheme
Eligible person Any person being an individual or a Hindu undivided
family.
Tax Return Any individual who has been issued a "Tax Return
Preparer Preparer Certificate" and a "unique identification

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number" under this Scheme by the Partner

Organisation to carry on the profession of preparing
the returns of income in accordance with the Scheme.
However, the following person are not entitled to act
as Tax Return Preparer:
(i) any officer of a scheduled bank with which the
assessee maintains a current account or has
other regular dealings.
(ii) any legal practitioner who is entitled to practice
in any civil court in India.
(iii) an accountant.
Educational An individual, who holds a bachelor degree from a
qualification for recognised Indian University or institution, or has
Tax Return passed the intermediate level examination conducted
Preparers by the Institute of Chartered Accountants of India or
the Institute of Company Secretaries of India or the
Institute of Cost Accountants of India, shall be eligible
to act as Tax Return Preparer.
Preparation of An eligible person may, at his option, furnish his return
and furnishing of income under section 139 for any assessment year
the Return of after getting it prepared through a Tax Return
Income by the Preparer:
Tax Return However, the following eligible person (an individual
Preparer or a HUF) cannot furnish a return of income for an
assessment year through a Tax Return Preparer:
(i) who is carrying out business or profession during
the previous year and accounts of the business or
profession for that previous year are required to be
audited under section 44AB or under any other law
for the time being in force; or
(ii) who is not a resident in India during the previous year.
An eligible person cannot furnish a revised return of
income for any assessment year through a Tax Return
Preparer unless he has furnished the original return of
income for that assessment year through such or any
other Tax Return Preparer.

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Note - It may be noted that as per section 139B(3), an employee of the “specified
class or classes of persons” is not authorized to act as a Tax Return Preparer.
Therefore, it follows that employees of companies and persons whose accounts are
required to be audited under section 44AB or any other law for the time being in
force (since they are not falling in the category of specified class or classes of
persons), are eligible to act as Tax Return Preparers.

ILLUSTRATION 3
Mrs. Hetal, an individual engaged in the business of Beauty Parlour, has got her books
of account for the financial year ended on 31 st March, 2024 audited under section
44AB. Her total income for the A.Y. 2024-25 is ` 6,35,000. She wants to furnish her
return of income for A.Y. 2024-25 through a tax return preparer. Can she do so?
SOLUTION
Section 139B provides a scheme for submission of return of income for any
assessment year through a Tax Return Preparer. However, it is not applicable to
persons whose books of account are required to be audited under section 44AB.
Therefore, Mrs. Hetal cannot furnish her return of income for A.Y.2024-25 through
a Tax Return Preparer.

16. PERSONS AUTHORISED TO VERIFY RETURN OF

INCOME [SECTION 140]
This section specifies the persons who are authorized to verify the return of income
under section 139.

Assessee Circumstance Authorised Persons

1. Individual (i) In circumstances not - the individual himself
covered under (ii), (iii)
& (iv) below
(ii) where he is absent from - the individual himself; or
India - any person duly
authorised by him in
this behalf holding a
valid power of attorney
from the individual
(Such power of
attorney should be

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attached to the return

of income)
(iii) where he is mentally - his guardian; or
incapacitated from - any other person
attending to his affairs competent to act on his
behalf
(iv) where, for any other - any person duly
reason, it is not authorised by him in this
possible for the indi- behalf holding a valid
vidual to verify the power of attorney from
return the individual, which
should be attached to
the return of income.
2. Hindu (i) in circumstances not - the karta
Undivided covered under (ii) and
Family (iii) below
(ii) where the karta is - any other adult
absent from India member of the HUF
(iii) where the karta is mentally - any other adult
incapacitated from member of the HUF
attending to his affairs
3. Company (i) in circumstances not - the managing director
covered under (i) to (vi) of the company
below
(ii)
(a) where for any
unavoidable reason any director of the
such managing director company or
is not able to verify the any other person as
return; or may be prescribed for
(b) where there is no this purpose
managing director
(iii) where the company is - the managing director of
not resident in India the company (or)
- a person who holds a
valid power of attorney

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from such company to

do so (such power of
attorney should be
attached to the return).
(iv)
(a) Where the company is - Liquidator
being wound up
(whether under the
orders of a court or
otherwise); or
(b) where any person has - Liquidator
been appointed as the
receiver of any assets of
the company
(v) Where the - the principal officer of
management of the the company
company has been
taken over by the
Central Government or
any State Government
under any law
(vi) Where an application for - insolvency professional
corporate insolvency appointed by such
resolution process has Adjudicating Authority
been admitted by the
Adjudicating Authority
under the Insolvency and
Bankruptcy Code, 2016.
4. Firm (i) in circumstances not - the managing partner of
covered under (ii) below the firm
(ii)
(a) where for any unavoidable - any partner of the firm,
reason such managing not being a minor
partner is not able to verify
the return; or
(b) where there is no - any partner of the firm,
managing partner. not being a minor

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5. LLP (i) in circumstances not - Designated partner

covered under (ii) below
(ii)
(a) where for any
unavoidable reason any partner of the LLP or
such designated any other person as may
partner is not able to be prescribed for this
verify the return; or purpose
(b) where there is no
designated partner.
6. Local - - the principal officer
authority
7. Political - - the chief executive officer
party 4 of such party (whether he
is known as secretary or by
any other designation)
8. Any other - - any member of the
association association or the
principal officer of such
association
9. Any other - - that person or some
person other person competent
to act on his behalf.

Any other person in case of company and LLP - The CBDT has, vide Notification
No. 93/2021 dated 18.8.2021, specified that “any other person” referred to in
section 140(c) and 140(cd) for company and LLP, respectively, shall be the person,
appointed by the Adjudicating Authority (i.e., National Company Law Tribunal
constituted under section 408 of the Companies Act, 2013) for discharging the
duties and functions of an interim resolution professional, a resolution professional,
or a liquidator, as the case may be, under the Insolvency and Bankruptcy Code,
2016 and the rules and regulations made thereunder.

4
Referred to in section 139(4B), which will be dealt with at the Final level.

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LET US RECAPITULATE

Section Particulars
139(1) Assessees required to file return of income compulsorily
(i) Companies and firms (whether having profit or loss or nil
income);
(ii) 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;
(iii) 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.
(iv) Any person other than a company or a firm, who is not
required to furnish a return under section 139(1), who during
the previous year –
- has deposited more than ` 1 crore in one or more
current accounts maintained with a banking company or
a co-operative bank; or
- has incurred expenditure of more than ` 2 lakh for
himself or any other person for travel to a foreign
country; or
- has incurred expenditure of more than ` 1 lakh towards
consumption of electricity; or
- fulfils such other conditions as may be prescribed
Accordingly, the CBDT has notified that any person other than
a company or a firm, who is not required to furnish a return
under section 139(1) has to file their return of income on or
before due date -
(i) if his total sales, turnover or gross receipts, as the case may
be, in the business > ` 60 lakhs during the previous year;
or

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(ii) if his total gross receipts in profession > ` 10 lakhs

during the previous year; or
(iii) 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
(iv) 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
(i) 31st October of the assessment year, in case the assessee
(other than an assessee referred to in (ii) below) 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.
(ii) 30th November of the assessment year, in the case of an
assessee including the partners of the firm being such
assessee who is required to furnish a report referred to in
section 92E.
(iii) 31st July of the assessment year, in case of any other assessee.
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
Loss from house property and unabsorbed depreciation can be
carried forward for set-off even though return has not been filed
before the due date.
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:

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(i) three months prior to the end of the relevant assessment year
(i.e., 31.12.2024 for P.Y. 2023-24); or
(ii) completion of the assessment,
whichever is earlier.
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:
(i) three months prior to the end of the relevant assessment year
(i.e., 31.12.2024 for P.Y. 2023-24); or
(ii) completion of assessment,
whichever is earlier.
Thus, belated return can also be revised.
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.
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 the date of furnishing of the return
furnished after due date
Where no return is the date of completion of
furnished assessment
However, where the assessee has paid taxes in full on or before the
due date, interest under section 234A is not leviable.
140A Self-Assessment tax
Where any tax is payable on the basis of any return required to be
furnished under section 139, after taking into account –
(i) the amount of tax, already paid,
(ii) the tax deducted or collected at source
(iii) any relief of tax claimed under section 89
(iv) any tax credit claimed to be set-off in accordance with the
provisions of section 115JD, in case the assessee has exercised

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the option of shifting out of the default tax regime provided

under section 115BAC(1A); and
(v) 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.
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, 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 –
(i) is a loss return; or
(ii) 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
(iii) 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 –
(a) an updated return has been furnished by him under this sub-
section for the relevant assessment year; or
(b) any proceeding for assessment or reassessment or
recomputation or revision of income is pending or has been
completed for the relevant assessment year in his case; or

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(c) he is such person or belongs to such class of persons, as may

be notified by the CBDT.
140B Tax on Updated Return
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 updated return shall be accompanied by proof of payment of
such tax, additional income-tax, interest and fee.
The tax payable is to be computed after taking into account the
following -
(i) the amount of tax, if any, already paid, as advance tax
(ii) the tax deducted or collected at source
(iii) any relief of tax claimed under section 89; and
(iv) any tax credit claimed to set-off in accordance with the
provisions of section 115JD, in case the assessee has exercised
the option of shifting out of the default tax regime provided
under section 115BAC(1A).
In a case, where no earlier return has been furnished, the interest
payable under section 234A has to be computed on the amount of
the tax on the total income as declared in the updated return under
section 139(8A), in accordance with the provisions of section
140A(1A).
Payment of tax, additional tax, interest and fee before
furnishing updated return of income if return is furnished
earlier
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

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additional tax computed u/s 140B(3), as reduced by the amount of

interest paid under the provisions of this Act in the earlier return,
before furnishing the return.
The updated return shall be accompanied by proof of payment of
such tax, additional income-tax and interest.
The tax payable has to be computed after taking into account the
following -
(i) the amount of relief or tax referred to in section 140A(1), the
credit for which has been taken in the earlier return
(ii) the tax deducted or collected at source, in accordance with
the provisions of Chapter XVII-B, 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
(iii) any tax credit claimed, to set-off in accordance with the
provisions of section 115JD, which has not been claimed in
the earlier return, in case the assessee has exercised the
option of shifting out of the default tax regime provided
under section 115BAC(1A).
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 –
(i) 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
(ii) 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 A.Y. but before completion of the
period of 24 months from the end of the relevant A.Y.
139(9) Defective Return
Where the Assessing Officer considers that the return of income is
defective, he may intimate the defect to the assessee and give him
an opportunity to rectify the defect within 15 days from the date of

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intimation or within such further period, which, the Assessing

Officer may allow in his discretion on an application made by the
assessee in this behalf.
If the defect is not rectified within such period, the return would be
treated as an invalid return. Consequently, the provisions of the
Income-tax Act, 1961 would apply as if the assessee had failed to
furnish the return.
However, where the assessee rectifies the defect after the expiry of
15 days or further period allowed by the Assessing Officer but
before the assessment is made, the Assessing Officer may condone
the delay and treat the return as a valid return.
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
139A Permanent Account Number (PAN)
Quoting of PAN is mandatory in all documents pertaining to the
following prescribed transactions :
(a) in all returns to, or correspondence with, any income-tax
authority;
(b) in all challans for the payment of any sum due under the Act;
(c) 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 Aadhaar Number in lieu of the
PAN if he
- has not been allotted a PAN but possesses the Aadhaar
number
- has been allotted a PAN and has intimated his Aadhaar
number to prescribed authority in accordance with the
requirement contained in section 139AA(2).

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139AA Quoting of Aadhaar Number

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 Aadhaar Number, the Enrolment ID of
Aadhaar 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 Aadhaar Number, has to intimate his Aadhaar
Number to the prescribed authority on or before 31.3.2022.
If such person has failed to intimate the same on or before 31st
March, 2022, the PAN of such person would become inoperative
and he would be liable for payment of fee in accordance with
section 234H read with Rule 114(5A) i.e., ` 1,000.
Where such person who has not intimated his Aadhaar number on
or before 31st March, 2022, has intimated his Aadhaar number
under section 139AA(2) after 31st March, 2022, after payment of fee
specified in section 234H read with Rule 114(5A), his PAN would
become operative within 30 days from the date of intimation of
Aadhaar number.
The consequences of inoperative PAN would be effective from the
date specified by the Board i.e., 1.7.2023 [Circular No. 3/2023 dated
28th March, 2023]

© The Institute of Chartered Accountants of India

 a 8.52 INCOME TAX LAW

TEST YOUR KNOWLEDGE

1. State with reasons whether you agree or disagree with the following
statements:

(a) Return of income of Limited Liability Partnership (LLP) could be verified

by any partner.
(b) Time limit for filing return under section 139(1) in the case of Mr. A
having total turnover of ` 160 lakhs (` 100 lakhs received in cash) for the
year ended 31.03.2024 whether or not declaring presumptive income
under section 44AD, is 31st October, 2024.
2. Mr. Vineet exercised the option of shifting out of the default tax regime provided
under section 115BAC(1A) and submits his return of income under the optional
tax regime (i.e., the normal provisions of the Act) on 12-09-2024 for A.Y 2024-
25 consisting of income under the head “Salaries”, “Income from house
property” and bank interest. On 21-12-2024, he realized that he had not
claimed deduction under section 80TTA in respect of his interest income on the
Savings Bank Account. He wants to revise his return of income. Can he do so?
Examine. Would your answer be different if he discovered this omission on 21-
03-2025?
3. Examine with reasons, whether the following statements are true or false, with
regard to the provisions of the Income-tax Act, 1961:
(i) The Assessing Officer has the power, inter alia, to allot PAN to any person
by whom no tax is payable.
(ii) Where the Karta of a HUF is absent from India, the return of income can
be verified by any male member of the family.

4. Explain the term “return of loss” under the Income-tax Act, 1961. Can any loss
be carried forward even if return of loss has not been filed as required?
5. Mr. Aakash has undertaken certain transactions during the F.Y.2023-24, which
are listed below. You are required to identify the transactions in respect of
which quoting of PAN is mandatory in the related documents –

© The Institute of Chartered Accountants of India

 PROVISIONS FOR FILING RETURN OF a
INCOME AND SELF ASSESSMENT 8.53 a

S. No. Transaction
1. Payment of life insurance premium of ` 45,000 in the
F.Y.2023-24 by account payee cheque to LIC for insuring life of
self and spouse
2. Payment of ` 1,00,000 to a five-star hotel for stay for 5 days with
family, out of which ` 60,000 was paid in cash
3. Payment of ` 80,000 by ECS through bank account for acquiring
the debentures of A Ltd., an Indian company
4. Payment of ` 95,000 by account payee cheque to Thomas Cook
for travel to Dubai for 3 days to visit relatives
5. Applied to SBI for issue of credit card.

ANSWERS
1. (a) Disagree
The return of income of LLP should be verified by a designated partner.
Any other partner can verify the Return of Income of LLP only in the
following cases:-
(i) where for any unavoidable reason such designated partner is not
able to verify the return, or,
(ii) where there is no designated partner.
(b) Disagree
In case Mr. A offers his business income as per the presumptive taxation
provisions of section 44AD (` 11.60 lakhs or more), then, the due date
under section 139(1) for filing of return of income for the year ended
31.03.2024, shall be 31st July, 2024.

In case, Mr. A wants to declare business income lower than ` 11.60

lakhs, he has to get his accounts audited under section 44AB, since his
turnover exceeds ` 1 crore, in which case, the due date for filing return
would be 31st October, 2024.
2. Since Mr. Vineet has income only under the heads “Salaries”, “Income from
house property” and “Income from other sources”, he does not fall under the
category of a person whose accounts are required to be audited under the

© The Institute of Chartered Accountants of India

 a 8.54 INCOME TAX LAW

Income-tax Act, 1961 or any other law in force. Therefore, the due date of
filing return for A.Y.2024-25 under section 139(1), in his case, is 31 st July, 2024.
Since Mr. Vineet had submitted his return only on 12.9.2024, the said return
is a belated return under section 139(4).
As per section 139(5), a return furnished under section 139(1) or a belated
return u/s 139(4) can be revised. Thus, a belated return under section 139(4)
can also be revised. Therefore, Mr. Vineet can revise the return of income filed
by him under section 139(4) in December 2024, to claim deduction under
section 80TTA, since the time limit for filing a revised return is three months
prior to the end of the relevant assessment year, which is 31.12.2024.
However, he cannot revise return had he discovered this omission only on 21-
03-2025, since it is beyond 31.12.2024.
3. (i) True: Section 139A(2) provides that the Assessing Officer may, having
regard to the nature of transactions as may be prescribed, also allot a
PAN to any other person, whether any tax is payable by him or not, in
the manner and in accordance with the procedure as may be prescribed.
(ii) False: Section 140(b) provides that where the Karta of a HUF is absent
from India, the return of income can be verified by any other adult
member of the family; such member can be a male or female member.
4. A return of loss is a return which shows certain losses. Section 80 provides
that the losses specified therein cannot be carried forward, unless such losses
are determined in pursuance of return filed under the provisions of section
139(3).
Section 139(3) states that to carry forward the losses specified therein, the
return should be filed within the time specified in section 139(1).
Following losses are covered by section 139(3):
• business loss to be carried forward under section 72(1),

• speculation business loss to be carried forward under section 73(2),

• loss from specified business to be carried forward under section 73A(2),
in case the assessee has exercised the option of shifting out of the
default tax regime provided under section 115BAC(1A).

© The Institute of Chartered Accountants of India

 PROVISIONS FOR FILING RETURN OF a
INCOME AND SELF ASSESSMENT 8.55 a

• loss under the head “Capital Gains” to be carried forward under section
74(1); and
• loss incurred in the activity of owning and maintaining race horses to
be carried forward under section 74A(3)
However, loss from house property to be carried forward under section 71B
and unabsorbed depreciation under section 32 can be carried forward even
if return of loss has not been filed as required under section 139(3).
5.

Transaction Is quoting of PAN mandatory

in related documents?
1. Payment of life insurance premium No, since the amount paid does
of ` 45,000 in the F.Y.2023-24 by not exceed ` 50,000 in the
account payee cheque to LIC for F.Y.2023-24.
insuring life of self and spouse
2. Payment of ` 1,00,000 to a five-star Yes, since the amount paid in
hotel for stay for 5 days with cash exceeds ` 50,000
family, out of which ` 60,000 was
paid in cash
3. Payment of ` 80,000, by ECS Yes, since the amount paid for
through bank account, for acquiring debentures exceeds
acquiring the debentures of A Ltd., ` 50,000. Mode of payment is
an Indian company not relevant in this case.
4. Payment of ` 95,000 by account No, since the amount was paid
payee cheque to Thomas Cook for by account payee cheque,
travel to Dubai for 3 days to visit quoting of PAN is not mandatory
relatives even though the payment
exceeds ` 50,000
5. Applied to SBI for issue of credit Yes, quoting of PAN is
card. mandatory on making an
application to a banking
company for issue of credit card.

© The Institute of Chartered Accountants of India