Tax Ready Reckoner

Section 139D of the Income Tax Act, 1961, mandates electronic filing (e-filing) of income tax returns for specified taxpayers. This provision ensures digitization, efficiency, and transparency in tax compliance. 1. Who Must File Electronically? E-filing is compulsory for: Individuals/HUFswith total income exceeding ₹5 lakh (or claiming refunds). All companies, LLPs, and firms(regardless of income). Taxpayers requiring audit(Section 44AB). Charitable trusts, political parties, and research institutions(ITR-7). Exceptions: […]

Section 139B of the Income Tax Act, 1961, allows taxpayers to file their income tax returns through authorized Tax Return Preparers (TRPs). This provision aims to simplify tax compliance, especially for small taxpayers and those unfamiliar with the e-filing process. 1. Who is a Tax Return Preparer (TRP)? A TRP is a professional authorized by the Income Tax Department to: Assist taxpayers in preparing

Section 140 of the Income Tax Act, 1961 specifies who must verify the return of income and the authorized signatories for different categories of taxpayers. Here’s a detailed breakdown: 1. Individual Taxpayers Must be signed by: The individual themselves Exception: For minors – by their guardian For incapacitated persons – by their legal representative 2. Hindu Undivided Families (HUFs)

Section 140A mandates taxpayers to self-assess their income, calculate tax liability, and pay any outstanding tax before filing their return. This ensures compliance and avoids penalties for underpayment. Below is a detailed breakdown of its provisions, calculation, and procedures. 1. Key Provisions of Section 140A (A) Who Must Pay Self-Assessment Tax? All taxpayersfiling returns under: Section 139(Regular, belated,

Section 142 empowers the Assessing Officer (AO) to conduct a preliminary inquiry before finalizing an income tax assessment. It allows the AO to gather additional information, documents, or even compel a non-filer to submit a return. Below is a detailed breakdown of its provisions, procedures, and consequences. 1. When is a Notice Under Section 142(1) Issued? A notice under Section

Section 142A of the Income Tax Act, 1961 empowers the Assessing Officer (AO) to refer matters of asset valuation to a Valuation Officer during the process of assessment or reassessment. The provision is aimed at ensuring that the actual or fair market value of specified assets, properties, or investments is correctly determined for tax purposes

Section 142B of the Income Tax Act, 1961 empowers the Central Government to make schemes for faceless inquiry, direction for special audit, and valuation to enhance efficiency, transparency, and accountability in tax proceedings. The intention is to minimize direct interface between taxpayers and tax authorities and to ensure impartial and technologically advanced administration. What Does

Section 143(1) of the Income Tax Act, 1961 governs the automated processing of income tax returns by the Centralized Processing Center (CPC). This is a preliminary, non-scrutiny assessment conducted without human intervention. Key Features of Section 143(1) Processing Automated Verification The system cross-checks the return with: Form 26AS (TDS/TCS data) AIS (Annual Information Statement) Tax payment records

A scrutiny (regular) assessment under Section 143(3) is a comprehensive evaluation of a taxpayer’s return by the Assessing Officer (AO). The goal is to ensure that income has not been understated, excessive loss has not been claimed, and tax has not been underpaid. This process is significantly more detailed than the preliminary review done under Section 143(1).

Section 143(3) deals with the scrutiny assessment process in Indian income tax law. This assessment is undertaken by the Assessing Officer (AO) after a detailed examination of the evidence and information submitted by the taxpayer, along with any additional evidence gathered by the AO. Key Steps in Assessment After Evidence Initiation: Notice Under Section 143(2) If the