Mandatory furnishing of return by certain exempt entities
The existing provisions of sub-section (4C) of section 139 mandate filing of return by certain entities which are exempt from the levy of income-tax.
In order to verify that certain entities which enjoy exemption under section 10 actually carry out the activities for which the exemption has been provided under the Act, it is proposed to provide that any person as referred to in clause (23AAA), Investor Protection Fund referred to in clause (23EC) or clause (23ED), Core Settlement Guarantee Fund referred to in clause (23EE) and any Board or Authority referred to in clause (29A) of section 10 shall also be mandatorily required to furnish a return of income.
This amendment will take effect from 1st April, 2018 and will, accordingly apply in relation to assessment year 2018-19 and subsequent years.
Extract of relevant clause from Finance Bill, 2017
Amendment of section 139.
55. In section 139 of the Income-tax Act, with effect from the 1st day of April, 2018,—
(i) in sub-section (4C),—
(I) after clause (c), the following clause shall be inserted, namely:—
“(ca) person referred to in clause (23AAA) of section 10;”;
(II) after clause (eb), the following clauses shall be inserted, namely:—
“(eba) Investor Protection Fund referred to in clause (23EC) or clause (23ED) of section 10;
(ebb) Core Settlement Guarantee Fund referred to in clause (23EE) of section 10;”;
(III) after clause (f), the following clause shall be inserted, namely:—
“(fa) Board or Authority referred to in clause (29A) of section 10;”;
(IV) in the long line occurring after clause (h), after the words “association or institution,”, the words “person or” shall be inserted;
(ii) in sub-section (5) [as substituted by section 67 of the Finance Act, 2016], the words “the expiry of one year from” shall be omitted.
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018