Taxguru Team compiled the Rule 12 of Income Tax Rules based on the RECENT amendment in rules vide Notification No. 24/2016 Dated 30/03/2016 for ready reference of our readers. Changes are Marked in Red.

[Return of income and return of fringe benefits.

12. (1) The return of income required to be furnished under sub-section (1) or sub-section (3) or sub-section (4A) or sub-section (4B) or sub-section (4C) or sub-section (4D) or sub-section (4E) or sub-section (4F) of section 139 or clause (i) of sub-section (1) of section 142 or sub-section (1) of section 148 or section 153A relating to the assessment year commencing [on the 1st day of April, [2016]] shall,—

[(a) in the case of a person being an individual where the total income includes income chargeable to income-tax, under the head,—

(i) “Salariesor income in the nature of family pension as defined in the Explanation to clause (iia) of section 57; or

(ii) “Income from house property”, where assessee does not own more than one house property and does not have any brought forward loss under the head; or

(iii) “Income from other sources, except winnings from lottery or income from race horses, [and does not have any loss under the head]

be in Form [SAHAJ] (ITR-1) and be verified in the manner indicated therein:]

[Provided that the provisions of this clause shall not apply to a person who,—

(I) is a resident, other than not ordinarily resident in India within the meaning of sub-section (6) of section 6 and has,—

(i) assets (including financial interest in any entity) located outside India; or

(ii) signing authority in any account located outside India; or

(iii) income from any source outside India;

(II) has claimed any relief of tax under section 90 or 90A or deduction of tax under section 91; or

(III) has income not chargeable to tax, exceeding five thousand rupees. ]

(b) in the case of a person being an individual [not being an individual to whom clause (a) applies] or a Hindu undivided family where the total income does not include any income chargeable to income-tax under the head “Profits or gains of business or profession”, be in Form No. ITR-2 and be verified in the manner indicated therein;

(c) in the case of a person being an individual or a Hindu undivided family who is a partner in a firm and where income chargeable to income-tax under the head “Profits or gains of business or profession” does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm, be in Form No. ITR-3 and be verified in the manner indicated therein;

(ca) in the case of a person being an individual or a Hindu undivided family or a firm, other than a limited liability partnership firm deriving business income and such income is computed in accordance with special provisions referred to in section 44AD and section 44AE of the Act for computation of business income, be in Form SUGAM (ITR-4S) and be verified in the manner indicated therein:

[Provided that the provisions of this clause shall not apply to a person who,—

(I) is a resident, other than not ordinarily resident in India within the meaning of sub-section (6) of section 6 and has,—

(i) assets (including financial interest in any entity) located outside India; or

(ii) signing authority in any account located outside India; or

(iii) income from any source outside India;”;

(II) has claimed any relief of tax under section 90 or 90A or deduction of tax under section 91; or

(III) has income not chargeable to tax, exceeding five thousand rupees. ]

(d) in the case of a person being an individual or a Hindu undivided family other than the individual or Hindu undivided family referred to in clause (a) or clause (b) or clause (c) [or clause (ca)] and deriving income from a proprietory business or profession, be in Form No. ITR-4 and be verified in the manner indicated therein;

(e) in the case of a person not being an individual or a Hindu undivided family or a company or a person to which clause (g) applies, be in Form No. ITR-5 and be verified in the manner indicated therein;

(f) in the case of a company not being a company to which clause (g) applies, be in Form No. ITR-6 and be verified in the manner indicated therein;

(g) in the case of a person including a company whether or not registered under section 25 of the Companies Act, 1956 (1 of 1956), required to file a return under sub-section (4A) or sub-section (4B) or sub-section (4C) or sub-section (4D) or sub-section (4E)or sub-section (4F) of section 139, be in Form No. ITR-7 and be verified in the manner indicated therein;

(h) [***]

(2) The return of income required to be furnished in Form SAHAJ (ITR-1) or Form No. ITR-2 or Form No. ITR-3 or Form SUGAM (ITR-4S) or Form No. ITR-4 or Form No. ITR-5 or Form No. ITR-6 [or Form No. ITR-7] shall not be accompanied by a statement showing the computation of the tax payable on the basis of the return, or proof of the tax, if any, claimed to have been deducted or collected at source or the advance tax or tax on self-assessment, if any, claimed to have been paid or any document or copy of any account or form or report of audit required to be attached with the return of income under any of the provisions of the Act: ]

[Provided that where an assessee is required to furnish a report of audit specified under sub-clause (iv), (v), (vi) or (via) of clause (23C) of section 10, section 10A, section 10AA, clause (b) of sub-section (1) of section 12A, section 44AB, section 44DA, section 50B, section 80-IA, section 80-IB, section 80-IC, section 80-ID, section 80JJAA, section 80LA, section 92E, section 115JB or section 115VW or to give a notice under clause (a) of sub-section (2) of section 11 of the Act, he shall furnish the same electronically.]

(3) The return of income referred to in sub-rule (1) shall be furnished by a person mentioned in column (ii) of the Table below to whom the conditions specified in column (iii) apply, in the manner specified in column (iv) thereof:-

Table

Sl.
Person
Condition
Manner of furnishing return of income
(i)
(ii)
(iii)
(iv)
1Individual or Hindu undivided family(a) Accounts are required to be audited under section 44AB of the Act;Electronically under digital signature
(b) Where (a) is not applicable and,-

(I) the return is furnished in Form No. ITR-3 or Form No. ITR-4; or

(II) the person, being a resident, other than not ordinarily resident within the meaning of sub-section (6) of section 6, has, (A) assets (including financial interest in any entity) located outside India; or(B) signing authority in any account located outside India; or(C) income from any source outside India;

(III) any relief, in respect of tax paid outside India, under section 90 or 90A or deduction of tax under section 91 is claimed; or

(IV) any report of audit referred to in proviso to sub-rule (2) is required to be furnished electronically; or

(V) total income assessable under the Act during the previous year of the person (other than the person, being an individual of the age of 80 years or more at any time during the previous year and furnishing the return in Form ITR-1 or ITR-2),-

(i) exceeds five lakh rupees; or

(ii) any refund is claimed in the return of income;

(A) Electronically under digital signature; or-

(B) Transmitting the data in the return electronically under electronic verification code; or

(C) Transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V.

(c) In any other case.(A) Electronically under digital signature; or-

(B) Transmitting the data in the return electronically under electronic verification code; or

(C) Transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V; or

(D) Paper form;

2CompanyIn all cases.Electronically under digital signature.
3A person required to furnish the return in Form ITR-7(a) In case of a political party;Electronically under digital signature.
(b) In any other case(A) Electronically under digital signature; or

(B) Transmitting the data in the return electronically under electronic verification code; or

(C) Transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V.

4Firm or limited liability partnership or any person (other than a person mentioned in Sl. 1 to 3 above) who is required to file return in Form ITR-5(a) Accounts are required to be audited under section 44AB of the Act;Electronically under digital signature;
(b) In any other case.(A) Electronically under digital signature; or
(B) Transmitting the data in the return electronically under electronic verification code; or
(C) Transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V.

Explanation.- For the purposes of this sub-rule “electronic verification code” means a code generated for the purpose of electronic verification of the person furnishing the return of income as per the data structure and standards specified by Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems).’

(4) The Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture and transmission of data and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing the returns in the manners specified in clauses (ii), (iii) and (iv) of sub-rule (3). [and the report of audit or notice in the manner specified in proviso to sub-rule (2)]

(5) Where a return of income relates to the assessment year commencing on the 1st day of April,[2015] or any earlier assessment year, it shall be furnished in the appropriate form as applicable in that assessment year.]


Extract of sub-section (4F) pf Section 139

Following sub-section (4F) shall be inserted after sub-section (4E) of section 139 by the Finance Act, 2015, w.e.f. 1-4-2016 :

(4F) Every investment fund referred to in section 115UB, which is not required to furnish return of income or loss under any other provisions of this section, shall furnish the return of income in respect of its income or loss in every previous year and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).

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Tags : ITR (501)
  • Sekaran

    It is very obvious that Shri Jaitley is using his prowess as a criminal lawyer to the hilt. But he does not understand that by making such new laws etc in great detail, he is alienating the honest tax payer and makes him do some decent cover up using a qualifuied CA. While Modi Ji wants to make life easy, Jaitley G, wants to make it impossible,Their co existence is absolutelly a disater as it apperas though intentions may be honourable.The already sluggish CBDT has one more reason to not deliver a timely response o any matter as the ITOs are all clerks promoted who have to fall back on their bosses for responses and leaves a huge back log. Even simple things like mismatches notifed from CPC wait for four to six months! Wah FM Saab!