Tax Ready Reckoner

Under Section 139(4C) of the Income Tax Act, 1961, specific categories of non-profit entities must file an Income Tax Return (ITR-7) if their income (before claiming exemptions) exceeds the basic threshold. This ensures compliance while allowing tax benefits under relevant sections. 1. Who Must File? The following entities must file ITR-7 if their income (before exemptions) exceeds the basic exemption limit (₹2.5 lakh for […]

Under Section 139(4D) of the Income Tax Act, 1961, research institutions engaged in scientific, social, or statistical research must compulsorily file an Income Tax Return (ITR), even if their income is exempt under Section 10(21) or other provisions. 1. Applicability This section applies to: Scientific Research Associations(exempt under Section 10(21)). Social Science Research Organizations. Statistical Research Institutions. Other approved research bodies(recognized by the government). Key Condition:

Rule 12 of the Income Tax Rules, 1962, prescribes the forms, conditions, and procedures for filing income tax returns (ITRs) under Section 139 of the Income Tax Act, 1961. Below is a detailed breakdown: 1. Applicable ITR Forms The following forms are used based on the taxpayer’s income sources and category: Form Applicability Exclusions ITR-1 (SAHAJ) Individuals with income

Under Section 139(3) of the Income Tax Act, 1961, taxpayers can file a Return of Loss to carry forward certain losses to future years, subject to conditions under Section 80. Here’s a detailed breakdown: 1. Applicability & Key Conditions Who Can File? Individuals, HUFs, firms, companies, etc., who incur losses under: Business/Profession(including speculative business). Capital Gains(short-term or long-term). Owning racehorses(Section 74A).

Section 139(4) of the Income Tax Act, 1961, allows taxpayers to file a belated return if they miss the original due date. Here’s a detailed guide covering eligibility, deadlines, penalties, and consequences: 1. What is a Belated Return? A return filed after the original due date(e.g., 15 September 2025 for FY 2024-25) but before 31 December of the Assessment Year (AY) (e.g., 31

Section 139(5) of the Income Tax Act, 1961, allows taxpayers to correct errors or omissions in their originally filed Income Tax Return (ITR) by submitting a revised return. Below is a detailed breakdown of its provisions, deadlines, and procedures. 1. What is a Revised Return? A corrected versionof the original ITR, filed to rectify mistakes like: Missed income(e.g., interest, capital

The Income Tax Act, 1961, mandates taxpayers to submit certain documents, statements, and disclosures along with their ITR. Below is a structured breakdown of requirements under Sections 139(6) and 139(6A). 1. Mandatory Disclosures (Section 139(6)) Every return must include: (A) Basic Details PAN(Permanent Account Number) Aadhaar(if linked to PAN) Residential Status(as per Section 6) Bank Account Details(for refunds) (B)

Under the Explanation to Section 139(9) of the Income Tax Act, 1961, a return is considered defective if it fails to meet specific procedural or substantive requirements. Below are the key conditions that render a return defective: 1. Mandatory Requirements for a Valid Return A return shall be regarded as defective unless all the following conditions are fulfilled: (A) Documentation & Disclosures

Under Section 139C of the Income Tax Act, 1961, the Central Board of Direct Taxes (CBDT) has the authority to exempt certain taxpayers from submitting documents, statements, or audit reports along with their return, provided these are furnished on demand during assessment. 1. Key Provisions of Section 139C (A) CBDT’s Rule-Making Power The Board may issue rules to: Specify classes of personsexempted from attaching

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: