Deductions in respect of certain incomes not to be allowed unless return is filed by the due date
The existing provisions contained in the section 80AC of the Act provide that no deduction would be admissible under section 80-IA or section 80-IAB or section 80-IB or section 80-IC or section 80-ID or section 80-IE, unless the return of income by the assessee is furnished on or before the due date specified under sub-section (1) of section 139 of the Act. This burden is not cast upon assesses claiming deductions under several other similar provisions.
In view of the above, it is proposed to extend the scope of section 80AC to provide that the benefit of deduction under the entire class of deductions under the heading “C.—Deductions in respect of certain incomes” in Chapter VIA shall not be allowed unless the return of income is filed by the due date.
This amendment will take effect, from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-19 and subsequent assessment years.
Extract of Clause 23 of Finance Bill 2018
Clause 23 of the Bill seeks to amend section 80AC of the Income-tax Act relating to deduction not to be allowed unless return furnished.
The said section provides that where, in computing the total income of an assessee of the previous year relevant to the assessment year commencing on the 1st day of April, 2006 or any subsequent assessment year, any deduction admissible under section 80-IA or section 80-IAB or section 80-IB or section 80-IC or section 80-ID or section 80-IE, shall be allowed to him only if he furnishes a return of his income for such assessment year on or before the due date specified under sub-section (1) of section 139.
It is proposed to substitute the said section so as to provide that in computing the total income of an assessee of the previous year relevant to the assessment year commencing on or after the 1st day of April, 2018, deduction under any other provisions of Chapter VIA under the heading “C.—Deductions in respect of certain incomes” shall be allowed only if the return is filed within the due date specified under sub-section (1) of section 139.
This amendment will take effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 201 8-2019 and subsequent years.
Part C. – Deductions in respect of certain incomes – Income-tax Act, 1961
| Section 80H | : | Deduction in case of new industrial undertakings employing displaced persons, etc. |
| Section 80HH | : | Deduction in respect of profits and gains from newly established industrial undertakings or hotel business in backward areas |
| Section 80HHA | : | Deduction in respect of profits and gains from newly established small-scale industrial undertakings in certain areas |
| Section 80HHB | : | Deduction in respect of profits and gains from projects outside India |
| Section 80HHBA | : | Deduction in respect of profits and gains from housing projects in certain cases |
| Section 80HHC | : | Deduction in respect of profits retained for export business |
| Section 80HHD | : | Deduction in respect of earnings in convertible foreign exchange |
| Section 80HHE | : | Deduction in respect of profits from export of computer software, etc. |
| Section 80HHF | : | Deduction in respect of profits and gains from export or transfer of film software, etc. |
| Section 80I | : | Deduction in respect of profits and gains from industrial undertakings after a certain date, etc. |
| Section 80IA | : | Deductions in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc. |
| Section 80IAB | : | Deductions in respect of profits and gains by an undertaking or enterprise engaged in development of Special Economic Zone |
| Section 80IAC | : | Special provision in respect of specified business. |
| Section 80IB | : | Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings |
| Section 80IBA | : | Deductions in respect of profits and gains from housing projects. |
| Section 80IC | : | Special provisions in respect of certain undertakings or enterprises in certain special category States |
| Section 80ID | : | Deduction in respect of profits and gains from business of hotels and convention centres in specified area |
| Section 80IE | : | Special provisions in respect of certain undertakings in North-Eastern States |
| Section 80J | : | Omitted |
| Section 80JJ | : | Omitted |
| Section 80JJA | : | Deduction in respect of profits and gains from business of collecting and processing of bio-degradable waste |
| Section 80JJAA | : | Deduction in respect of employment of new employees |
| Section 80K | : | Omitted |
| Section 80L | : | Omitted |
| Section 80LA | : | Deductions in respect of certain incomes of Offshore Banking Units and International Financial Services Centre |
| Section 80M | : | Omitted |
| Section 80MM | : | Omitted |
| Section 80N | : | Omitted |
| Section 80O | : | Deduction in respect of royalties, etc., from certain foreign enterprises |
| Section 80P | : | Deduction in respect of income of co-operative societies |
| Section 80Q | : | Deduction in respect of profits and gains from the business of publication of books |
| Section 80QQ | : | Omitted |
| Section 80QQA | : | Deduction in respect of professional income of authors of text books in Indian languages |
| Section 80QQB | : | Deduction in respect of royalty income, etc., of authors of certain books other than text-books |
| Section 80R | : | Deduction in respect of remuneration from certain foreign sources in the case of professors, teachers, etc. |
| Section 80RR | : | Deduction in respect of professional income from foreign sources in certain cases |
| Section 80RRA | : | Deduction in respect of remuneration received for services rendered outside India |
| Section 80RRB | : | Deduction in respect of royalty on patents |
| Section 80S | : | Omitted |
| Section 80T | : | Omitted |
| Section 80TT | : | Omitted |
