Assessment procedure of income tax


After the previous year expiry, an assessee needs to furnish the income tax return in the prescribed form by due date specified in this behalf according to section 139(1) of income tax act. Then assessing officer will determine the tax liability of the assessee on the total income assessed by him. Due dates are given for advance tax or TDS/TCS. If any tax is found due on the assessee, a demand notice is issued to him for collecting such tax (section 156).
Filing the return of income: - section 139 of income tax act says that an assessee should furnish the return of his total income voluntarily in accordance with the following provisions.
1- Company return: - every company should furnish its return of income voluntary even if loss occurs to the company.
2- Firm return: - every firm is required to furnish its return of income voluntary even if loss occurs to the firm.
3- Return by any other person: - any other person should voluntarily furnish the return of his total income of any other person in respect of which he is assessable, provided his gross total income claiming an exception under section 10(A) or 10(B) exceeds the maximum amount not chargeable of tax (income tax limits which is 160000, 190000, 240000) as applicable to him.
However a cooperative society, local authority is always required to furnish the return of his total income as the said provision of maximum not chargeable of tax applies only to individual, H.U.F., an association of person and body of individual.
The return should be furnished in the prescribed form, verified in the prescribed manner and duly signed by the assessee
Non residents not to file voluntary return in certain cases where tax deducted at source. Theses cases area as follows.
- Non residents Indian earning investment income and long term capital gain.
- Foreign company or a non corporate non resident earning certain dividends and interest.
- Non resident foreign national receiving income from participation of games and other activity
Return to be furnished in prescribed form: - every assessee is required to furnish return in the prescribed form as given below.

 
Form ITR-1
Individual having income from salary/pension,family pension and interest

form ITR-2
Individual and H.U.F, not having income from business or profession

form ITR-3
Individual/H.U.F being partners of the firm and not carrying out business and profession in any propritorship

form ITR-4
Individual and H.U.F, having income from business or profession

Form ITR-5
Income tax return including FBT return for firms, AOP and BOI

Form ITR-6
Income tax return including FBT return for companies, other than companies claming exemption under section 11

Form ITR-7
Persons(including companies) required to file return under Sec. 139(4A) or Sec. 139(4B) or Sec. 139(4C) or Sec. 139(4D)

Form ITR-8
Return of fringe benefits for persons not liable to furnish income tax return

Form ITR-V
Where data of return of income /FBT in form ITR-1,2,3,4,5,6 and 8 transmitted electronically without digital signature

Where the last day of return is a holiday, return is to be filled on the next day.
Salaried person may furnish voluntary return through his employer: u/s 139(1A) a salaried employee has a option to furnished his return of income through his employer who will furnish bulk return to the designated assessing officer on or before the due date of furnishing return.
Electronic furnishing of return of income[sec 139(1B) r.w sec 139(D)] from the assessment year 2003-04 any assessee has the option to furnish a return of income for any previous year in accordance with the specified scheme in such form( including a floppy, CD, or any other computer readable media) as may be prescribed. The board u/s 139 may make rules providing for,
-          The class or classes of person who are required to furnish the return in electronic form.
-          The form and manner in which the return in electronic form may be furnished.
-          The documents, statements, receipts, certificates, or audited reports may not be furnished along with the return in electronic form but have to be produced on demand before the assessing officer.
-          The computer resource or the electronic record to which the return in electronic form may be transmitted.
Electronic furnishing of return of income scheme 2007:- the scheme has come into force w.e.f. 27 July 2007[notification no. 210/2007 F.no 142/16/2007 TPL].
Eligible person to furnish return of income/return of FBT:- an eligible person( who has the PAN and he needs to submit return in ITR1,ITR2, ITR3, ITR4, ITR6, ITR8) may at his option, furnish the return of income under section 139, or section 148(1) or section 153A or return of fringe benefit under section 115WD(1) or (2) for the AY 2007-08 and subsequent years to an e-return intermediary who is required to digitize the data of such return and transmit the same electronically to a server designated for the purpose by the e-return administrator, on or before the due date

where assessee is a company
by 30 september of the assessment year

where accounts of the assessee are required to be audited under this act or under any other law
by 30 september of the assessment year

where the assessee is a working partner of the firm whose accounts are required to be audited under any law
by 30 september of the assessment year

where the return is furnished by any other assessee
by 31 july of the assessment year

Form ITR-V to be submitted: - the eligible person is required to submit the duly verified Form ITR-V to the assessing officer with in 15 days from the issue of the provisional receipt for the electronic data received by the e-return administrator and the date of which such receipt is issued is deemed to be the date of filling the return. If ITR-V is not submitted within time, the date of submitting ITR-V is deemed to be date of filling the return.
Revised return: - an eligible person may also furnish the revised return of income under section 139(5) or revised return of FBT under section 115WD (4).
Procedure to be followed by the eligible person:- an eligible person opting to furnish his return of income must ensure that his return of income or fringe benefits falls under the scheme and should approach and give his consent to any of the e-return intermediary to act as high agent for the purpose of furnish the return.
Procedure to be followed by e-return intermediary: - an e-return intermediary should receive the papers of return of income, duly verified by the eligible person and should prepare the return of income on the basis of documents furnished by the eligible person.
The intermediary should upload the completed return of income, after validation of permanent account number, in the format specified by the e-return administrator, using his e-return intermediary indentification number [ERIIN].
The upload return is accepted after necessary validations. In respect of each accepted e-return, a duly filed Form ITR-V is generated by the system as a provisional receipt which is to be transmitted to the intermediary.
Processing of e-return: - the e-return is processed on priority basis. The refund, if any, due to the assessee is either credited by the assessing officer directly to his bank account, using the electronic clearing services [ECS] of the Reserve Bank of India or be directly sent to the assessee.
Share on Google Plus

About Nitin Aggarwal

    Blogger Comment
    Facebook Comment