Presented By-

CA Manoj Kumar Khurana

FORMS OF ITR

PROVSIONS OF SECTION 139(9).

REASONS FOR ISSUE OF NOTICE U/S 139(9)

RESPONDING TO NOTICE ISSUED U/S 139(9).

ANALYSIS OF :

FORMS OF ITR

• ITR – 1 OR SAHAJ

• ITR - 2

• ITR - 3

• ITR - 4

• ITR - 5

• ITR - 6

• ITR - 7

ITR – 1 OR SAHAJ

This Return Form is to be used by an Individual whose

total income for the assessment year 2017-18 includes:-

• Income from Salary/ Pension; or

• Income from One House Property (excluding cases

where loss is brought forward from previous years); or

• Income from Other Sources (excluding Winning from

Lottery and Income from Race Horses)

Who cannot use this Return Form

• If your total income exceeds Rs 50 lakhs.

• If you have foreign assets

• If you have agricultural income which is more than Rs.

5,000,

ITR – 2

This Return Form is to be used by an Individual or a

Hindu Undivided Family whose total income for the

assessment year 2017-18 includes:-

• Income from Salary/Pension; or

• Income from House Property; or

• Income from Capital Gains; or

• Income from Other Sources (including Winnings

from Lottery and Race Horses).

• Income of a person as a partner in the firm

• Foreign Assets/Foreign income

• Agricultural income more than Rs 5,000

• Clubbed Income

ITR – 3

The old ITR-4 tax form has been renamed ITR-3

The Current ITR 3 Form is to be used by an

Individual or an Hindu Undivided Family who have

income income from following sources:

• Carrying on a business or profession

• Return may include income from House Property,

Salary / Pension and Income from other sources

ITR – 4

The ITR-4S form has been renamed ITR-4

The current ITR 4 is applicable to Individuals and

HUFs having income from a business or profession

and who have opted for the Presumptive income

scheme as per Section 44AD ,Section 44ADA and

Section 44AE of the Income Tax Act.

However, if the turnover of the business exceeds

Rs 2 crores, the tax payer will have to file ITR-3

ITR – 5

ITR 5 is Applicable for

• Firms,

• LLPs,

• AOPs (Association of persons) and

• BOIs (Body of Individuals

ITR – 6

ITR 6 is For Companies other than companies

claiming exemption under section 11 (Income from

property held for charitable or religious purposes)

This return has to be filed electronically only.

ITR – 7

For persons including companies required to furnish return under

section 139(4A) or section 139(4B) or section 139(4C) or section

139(4D).

• 139(4A): Income derived from property held under trust or other legal obligation

wholly for charitable or religious purposes or in part only for such purposes.

• 139(4B) : Political party if the total income without giving effect to the provisions

of section 139A exceeds the maximum amount which is not chargeable to tax.

• 139(4C) : Required to be filed by every –

• scientific research association;

• news agency ;

• association or institution referred to in section 10(23A);

• Institution referred to in section 10(23B);

• fund or institution or university or other educational institution or any hospital

or other medical institution.

• 139(4D) : Every university, college or other institution, which is not required to

furnish return of income or loss under any other provision of this section.

SECTION 44AA

As per Section 44AA and Rule 6F, persons involved in

the following professions are mandated to maintain

books of account-

• Legal

• Medical

• Engineering

• Architectural

• Interior decoration

• Accountancy

• Technical consultancy

• Film artists(anyone engaged as a professional in the

film industry)

SECTION 44AA CONT. In addition to this, the following persons also have to maintain

account books:

• Persons involved in specified as well as non-specified

professions, and in business;

• Anyone involved in other profession/business, who earns

more than Rs. 1.2 lakh;

• The total turnover/gross receipts of business/profession is

more than Rs. 10 lakh in any of the previous 3 years;

• Any individual covered under Section 44AD, 44AE 44ADA,

who have declared less income than the profits estimated

under these sections;

• Even if the business is new, if it is expected to earn more than

Rs. 1.2 lakh or if its sales is expected to cross Rs. 10 lakh,

then account books need to be maintained.

An Income Tax Return shall be treated as a Defective Return

unless all the following conditions are fulfilled, namely:-

A return in the prescribed form with all annexure, columns and

statements duly filled in.

A statement showing the computation of the tax payable.

Proofs of tax, if any, claimed to have been deducted or

collected at source and the advance tax and self assessment

tax, if any, claimed to have been paid.

Report of Audit under Section 44AB or where the report has

been furnished prior to the furnishing of the return, a copy of

such report together with proof of furnishing of the report.

SECTION 139(9)

In case regular books of accounts are maintained by the

assessee, then copies of: Manufacturing, Trading, Profit/

Income & Loss/ Expense Accounts and the Balance Sheet. In

case of partnership firm/ AOP / BOI, the personal accounts of

the partners / members. In case of a proprietary concern, the

personal account of the proprietor. In case of a partner of a

firm, his personal account in the firm. In case of a member of

AOP/BOI, his personal account in AOP/BOI .

Where the accounts of the assessee have been audited then

copies of the audited profit & loss account, balance sheet and

the auditor’s report.

SECTION 139(9) CONT.

In case where cost audit under Companies Act has been

conducted, then the copy of such audit report.

Where the regular books of accounts are not maintained by the

assessee, then a statement showing the amount of turnover,

gross receipts, expenses and the net profit of the business or

profession carried on by the assessee and the basis on which

such amounts have been completed and also disclosing the

amount of total Sundry Debtors, Sundry Creditors, Stock-in-

hand, cash and bank balances at the end of the year.

SECTION 139(9) CONT.

REASONS/GROUNDS FOR

ISSUE OF NOTICE

INTIMATING DEFECTIVE

RETURNS

According to Various ITRs

FORM ITR 1:

Tax Deducted as per

Schedule TDS 1 that

is TDS of Salary is

greater than Gross

Total Income

Claiming Relief u/s

89(1) without

uploading Form 10E

Income should be

properly matched as per

26-AS while filing

response to defective

return.

Form 10E has to be

uploaded with return.

FORM ITR 3:

The assessee has not

filled P&L or Balance

Sheet or both

and gross receipts

value in Schedule of

income from Business

& Profession. (This is

the one of the

largest Reasons for

notice of defective

return in Income

Tax)

1. If Books of Accounts

maintained provides

full detail of Sources

& Application of

Funds.

2. If Books of Accounts

is not required to be

made, Details of

Debtors, Creditors,

Stock & Cash

FORM ITR 4: Presumptive income u/s 44AD is

less than 8% or 6% of Gross

Receipt or Sales turnover.

Enter presumptive income from

profession is less than 50% of

Gross Receipts u/s 44ADA

Presumptive income u/s 44AE is

less than Rs 7500 p.m. per vehicle

in case assessee is engaged in the

business of plying, hiring or leasing

such goods carriages & he did not

own more than ten goods carriages

at any time during the previous

year.

Code mentioned under Nature of

Business is incorrect.

Entered presumptive income should

not be less than 6% or 8% as the case

may be.

Entered presumptive income from

profession should not be than 50% of

Gross Receipts u/s 44ADA.

Entered presumptive income should

not be less than Rs 7500 p.m. per

vehicle.

Ensure to fill correct business codes in

the “Nature of Business”.

FORM ITR 6:

Assessee has income

taxable under

provisions of MAT but

he has not filed form

29-B

Form 29-B should be

filed duly signed by

auditor.

FORM ITR 7:

Trusts are having

income more than

slab limit but they

have not filed Form

10B.

Form 10-B should be

filed duly signed by

auditor.

COMMON ISSUES:

Assessee has not verified his return on time can also be one of the Reasons for notice of defective return in Income Tax

Deduction claimed under Chapter VIA under sections 80IA, 80IB,80IC, 80G but the relevant Schedules not filled

Income Tax Return should be timely verified.

Relevant Schedules should be filed while claiming deductions.

HOW TO RESPOND TO A

NOTICE ISSUED U/S

139(9) FOR DEFECTIVE

RETURN?

SECTION 133 (6)

• Power To Call For Information U/S 133(6)

PROVISIONS

Section 133(6) of the Income Tax Act enables the

income tax authorities to compel banks and other

authorities to furnish such information which will be

useful in connection with any pending proceeding or

an enquiry.

PROVISIONS U/s 133 (6)

PROVISIONS

Notice under section 133(6) is just an inquiry by the

official and not an assessment.

Under sec. 133(6) the relevant authorities can call for

i. Information in relation to such points or matters, or

ii. Furnish statements of account and affairs verified in

the manner specified by the above authorities,

which will be useful for or relevant to any enquiry or

proceeding carried for in respect of any asseessee.

NOTICE U/S 133(6)

PROVISIONS

1. For issuance of a notice under section 133(6) a

proceeding under Act must be pending against the

individual regarding whom information is called for.

2. The person cannot be an official of the department. He

should be either the assessee or any person related to

the assessee and not any person belonging to the

income tax department.

3. The information should not be connected with a future

proceeding. It should relate to a proceeding which is

already in existence.

4. It is not required that inquiry should have commenced

with issuance of notice as per section 133(6).

ESSENTIAL CONDITIONS FOR

INVOKING SECTION 136(6)