Budget 2016 has not only rationalized the time limit for filing of belated returns and revising of return but has also provided aid to the taxpayers by giving an opportunity to file return without paying self-assessment tax.

This is true!! Now, return can be successfully uploaded even if you have not paid the self-assessment tax and interest payable thereon. The return filed without payment of self-assessment tax shall not be considered as defective.

 

In order to rationalize the time allowed for filing of returns, completion of proceedings, and realization of revenue without undue compliance burden on the taxpayer, and to promote the culture of compliance, Budget 2016 has proposed to amend section 139(9) of the Income Tax Act, 1961.

 

Section 139(9) deals with defective returns. Explanation to sub-section (9) of the section 139 provides various instances when a return shall deemed to be defective. As per Clause (aa) of the Explanation-

• a return of income shall be regarded as defective unless the self-assessment tax together with interest, if any, payable in accordance with the provisions of section 140A, has been paid on or before the date of furnishing of return.

 

Budget 2016 proposed to omit clause (aa) of the Explanation to sub-section (9) of aforesaid section to provide that a return which is otherwise valid would not be treated defective merely because self-assessment tax and interest payable in accordance with the provisions of section 140A has not been paid on or before the date of furnishing of the return.

 

The assessees have been given big relief in case due to financial hardship or otherwise they are not able to pay self-assessment tax and interest on or before the date of furnishing of the return. File return without paying self-assessment tax.

 

The effect would be that return will not be treated as defective merely for non-payment of tax u/s 140A or interest. The reasons are apparent because for under payment of tax the assessing officer can always levy interest u/s 234A, 234B or 234C which are mandatory in nature.

 

The proposed amendment will take effect from 1st day of April, 2017 and will, accordingly apply in relation to assessment year 2017-2018 and subsequent years.

For hassle-free filing of return contact us @ taxmantra.com.

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