Sections 139 to 156

Procedure for assessment

Section 1391 l Return of income2

800. Sending blank return forms by post to all taxpayers existing on registers of department - Instructions in Circular Nos. 296 and 297 withdrawn

1. Reference is invited to Board’s Circular No. 296 [F. No. 220/3/81-IT (A-II)], dated 31-3-1981 as amended by its Circular No. 297 [F. No. 220/3/81-IT (A-II)], dated 10-4-1981 [Annex I and Annex II] in which it was desired that two copies of return forms  should be sent by the department on its own to all assessees on the register of the department having income above taxable limit.

2. This matter has been discussed in the Commissioner’s Conference, 1981 and it was pointed out that in addition to supply of return forms across the counters in the Income-tax Offices and their distribution through selected post offices, the return forms are taken in bulk by the income-tax practitioners for their clients. It was also pointed out that sending of return forms to all the assessees on its own may involve a lot of labour and money which in many cases may amount to duplication as well. Further, there is likelihood of sending wrong forms also to the assessees. An income-tax practitioners association has also suggested that the instructions referred to in para 1 should be modified. The matter has therefore, been reconsidered and it is decided to revert to the old practice. It is also decided that return forms may be sent to the head of the department or the Public Relations Officer of an organisation in bulk for supply to the employees of the department/organisation in the case of salaried taxpayers. It is also decided to have the forms supplied expeditiously to any assessee by post on a request having been made in this behalf.

3. This circular supersedes the directions contained in Circular Nos. 296 and 297 referred to above.

Circular : No. 307 [F. No. 220/3/81/(A-II)], dated 23-6-1981.

Annex I - Circular No. 296, Dated 31-3-1981
Referred to in Clarification

1. With a view to enabling the taxpayers existing on the registers of the Income-tax Department to file the return of income in time and to avoid inconvenience in  approaching the income-tax officers for getting the return forms, it has been decided by the Board that from the financial year 1981-82, two copies of blank income-tax return forms will be despatched by the concerned ITOs through ordinary post to all the taxpayers existing on the registers of the Department. While sending the return forms, the ITO will also send along with it challan forms for payment of self-assessment tax and two copies of the statements of advance tax to be made under section 209A of the Income-tax Act.

2. It has further been decided that two copies of the wealth-tax return form should also be sent to all those who are existing wealth-tax assessees on the registers of the Department along with the income-tax return forms.

3. This arrangement is in addition to existing arrangement of supply of return forms across the counters in the Income-tax Offices and through selected post offices. While mailing the return forms in bulk to the taxpayers, notices under section 139(2) or 14(2) are not expected to be issued. However, in cases where returns are not received by the due date, notices under section 139(2)/14(2) of the Income-tax Act/Wealth-tax Act, along with the return forms, will be sent separately through registered post or notice servers.

4. A compliance report may be sent by May 31 every year by the Commissioner to the Board to the effect that return forms, etc., have been supplied to all the assessees in his charge.

ANNEX II - CIRCULAR NO. 297, DATED 10-4-1981
REFERRED TO IN CLARIFICATION

Reference is invited to Board’s Circular No. 296, dated 31-3-1981 by which the Commissioners were asked to direct the ITOs to send two copies of return forms, etc., to the assessees existing on the register of the Department by ordinary post. This direction is modified to the extent that return forms etc., should be sent only to those assessees whose income according to the latest return/assessment on the file is above the taxable limit applicable to the assessment year 1981-82 or later years, and also to assessees claiming refund under section 237.

801. Supply of return and challan forms to assessee

With a view to enabling the tax-payers existing on the registers of the Income-tax Department to file the return of income in time and to avoid inconvenience in approaching the Income-tax Offices for getting the return forms, it has been decided by the Board that from the financial year 1981-82, 2 copies of blank income-tax return forms will be despatched by the concerned Income-tax Officers through ordinary post to all the tax-payers existing on the registers of the Department. While sending the return forms, the Income-tax Officer will also send along with it challan forms for payment of sell-assessment tax and 2 copies of the statements of advance tax to be made under section 209A of the Income-tax Act, 1961.

2. It has further been decided that two copies of the wealth-tax return form should also be sent to all those who are existing wealth-tax assessees on the registers of the Department along with the income-tax return forms.

3. This arrangement is in addition to existing arrangement of supply of return forms across the counters of the Income-tax Offices and through selected post offices. While mailing the return forms in bulk to the taxpayers, notices under section 139(2) or 141(2) are not expected to be issued. However, in cases where returns are not received by the due date, notice under section 139(2)/141(2) of the I.T. Act/W.T. Act along with the return forms, will be sent separately through Registered Post or notice servers.

4. A compliance report may be sent by 31st May every year by the Commissioner to the Board to the effect that return forms etc., have been supplied to all the assessees in his charge.

Necessary instructions may be issued to all the officers working in your charge urgently.

Circular : No. 296 [F. No. 220/3/81-ITA-II], dated 31-3-1981. [Source : 115th Report of Public Accounts Committee (1982-83) (Seventh Lok Sabha), p. 34].

802. Requirement of filing of Form ITNS 224 not compulsory along with income-tax return

References have been received from a number of associations that the Income-tax Officers are not accepting the returns without Form ITNS 224. This form was attached along with the return for 1980-81 to be filled by the assessees to enable the Income-tax Officer to quickly segregate the return into summary assessment or scrutiny assessment and to attend to pending miscellaneous matters. However, filing of this form is not compulsory. You are, therefore, requested to inform all the officers in your charge that if this form is not filled in, the return cannot be said to be incomplete. Such returns, may, therefore, continue to be received at the counters.

Circular : No. 274 [F. No. 220/22/80-IT(A-II)], dated 28-6-1980.

803. Where last day for filing of income/loss return is a day on which income-tax office is closed, assessee can file return on next day afterwards on which office is open and return will be considered to have been filed within specified time limit

1. Representations have been received by the Board seeking clarifications as to whether, the assessee could file a return of income/loss under the Income-tax Act, 1961 on the next working day following a holiday and claim it to have been filed within the statutory time limit.

2. The matter has been examined in consultation with the Ministry of Law and the Board are advised that, in such cases, section 10 of the General Clauses Act, 1897 will be applicable. According to this section, where any act or proceeding is directed or allowed to be done or taken in any court or office on a certain day or within a prescribed period, then, if the Court or office is closed on that day or the last day of the prescribed period, the act or proceeding shall be considered as done or taken in due time if it is done or taken on the next day afterwards on which the court or office is open.

3. In view of the above, it is hereby clarified that where the last day for filing return of income/loss is a day on which the office is closed, the assessee can file the return on the next day afterwards on which the office is open and, in such cases, the return will be considered to have been filed within the specified time limit.

4. This clarification also applied to the returns under other direct tax enactments.

Circular : No. 639, dated 13-11-1992.

804. Return in old forms to be accepted for assessment year 1983-84

The Central Board of Direct Taxes have clarified that, till such time as the new return forms become available, taxpayers may file their returns of income or, as the case may be, net wealth, in the existing return forms, which will be accepted by the officials of the Income-tax Department.

Press Note : Dated 7-6-1983 issued by CBDT.

805. Notices under sub-section (2) should not normally be issued prior to middle of July of assessment year

It was urged that the time allowed under the law for filing voluntary return of income should not be curtailed by issuing notices under section 139(2) calling for return of income in specific cases before the expiry of the statutory period for furnishing a voluntary return.

The Committee was informed that this suggestion was not acceptable on administrative grounds. However, as it is not intended to issue notices under section 139(2) in a routine manner so as to cut into the time available under section 139(1), the Board has issued instructions that notices under section 139(2) should not normally be issued prior to the middle of July of the assessment year unless the inadequacy of workload in any particular charge demands earlier issue of such notices. Further, even though a notice under section 139(2) has been issued by the Income-tax Officer, a taxpayer can make a request for extension of time for good and sufficient reasons and such requests would be looked into by the ITOs in a reasonable and judicious manner.

Source : Relevant extracts from minutes of 16th meeting of CDTAC held on 2-2-1972.

806. Benefit of extended time for filing of loss returns for assessment years 1968-69 and 1969-70 not to be denied following Supreme Court decision in Kulu Valley Transport Co.’s case

                                    CLARIFICATION 1

According to section 139(3), any person who has not been served with a notice under sub-section (2) of section 139 and has sustained any loss in any previous year may furnish a return of loss within the time allowed under sub-section (1) of section 139 to be eligible for the carry forward of the loss. Although the expression “within time allowed under sub-section (1)” was generally understood to mean the statutory time prescribed under section 139(1), executive instructions existed to the effect that if the voluntary loss return was filed before the close of the assessment year it might be treated as a valid return for the purpose of carry forward and set-off of loss in future years. With the decision of the Mysore High Court in the case of B.B. Danganavar v. ITO [1967] 65 ITR 370, to the effect that a loss return had to be filed within the statutory period mentioned in section 139(1), the circular was withdrawn with effect from the assessment year 1968-69. An amendment to sub-section (3) of section 139 giving powers to the Income-tax Officer to extend the time for filing voluntary loss has already been proposed through the Taxation Laws (Amendment) Bill, 1969, which will be effective from the assessment year 1970-71. The benefit of extended time for filing of loss returns would, therefore, have been denied for the assessment years 1968-69 and 1969-70. While considering the provisions regarding filing of loss returns as obtaining under the 1922 Act, the Supreme Court recently held in the case of CIT v. Kulu Valley Transport Co. Ltd. [1970] 77 ITR 518 that if a voluntary loss return was filed at any time before the assessment is made, the loss is eligible to be determined and carried forward for set-off in future years.

The Federation took up this matter at the 15th Meeting of the Central Direct Taxes Advisory Committee and suggested that the Supreme Court decision in the case of Kulu Valley Transport Co. Ltd. (supra) should also apply to cases under the 1961 Act, since the relevant provisions in the Acts of 1922 and 1961 in this respect are in pari materia. Therefore, Government should issue instructions directing the Income-tax Officers to decide the pending cases in accordance with the aforesaid Supreme Court decision and also to concede the point suo motu in cases which are pending before the appellate authorities.

We are given to understand that the Central Board of Direct Taxes have accepted the suggestion and issued instructions to the Commissioners of Income-tax accordingly.

Source : Circular Letter No. F.C. 211/FIN./43(1), dated 8-9-1970, issued by FICCI to its members.

                                    CLARIFICATION 2

This point related to the hardship which was being caused as a result of the Income-tax Officers following the recent decision of the Mysore High Court in B.B. Danganavar v. ITO [1967] 65 ITR 370, wherein it has been held that, under section 139(3), a loss return has to be filed within the statutory period prescribed under section 139(1), and that the time for filing such returns cannot be extended. It was urged that, as the statutory time limit for filing returns for the assessment year 1967-68 had already expired, which leaves assessees with no means to remedy the position in this behalf where extensions have been sought, the changed view should be applicable only from the assessment year 1968-69.

Deputy Prime Minister expressed the view that he was not in favour of extending time for filing of returns showing loss. However, on the limited point raised, the Committee was informed that the changed view will be applicable only from the assessment year 1968-69.

Source : Relevant extracts from minutes [Item No. 25] of 10th meeting of DTAC held on 23-12-1967.

807. Filing of returns by political parties/its units at State or district level in terms of sub-section (4B) - Obligation therefor

1. Section 13A has been inserted by the Taxation Laws (Amendment) Act, 1978 and has come into effect from 1-4-1979. Under section 13A, any income of a political party chargeable under the heads “Interest on securities”, “Income from house property”, “Income from other sources” or any income by way of voluntary contributions is exempt from income-tax.

2. Under Explanation to section 13A, political party means an association or

3. The exemption under section 13A is subject to the fulfilment of three conditions specified in the proviso to section 13A. These conditions are :

  (1)  The political party keeps and maintains such books of account and other documents as would enable the Income-tax Officer to properly deduce its income therefrom.

  (2)  In respect of each voluntary contribution in excess of ten thousand rupees, such political party keeps and maintains a record of such contributions and the name and address of the person who has made such contributions.

  (3)  The accounts of such political party are audited by an accountant as defined in the Explanation below to sub-section (2) of section 288.

4. Sub-section (4B) has been inserted in section 139 by the Taxation Laws (Amendment) Act, 1978 under which every political party is obliged to file every year a return of total income voluntarily. The total income for this purpose is to be computed without giving effect to the provisions of section 13A. If such total income exceeds the maximum amount which is not chargeable to tax, the liability of the political party to file the return of income voluntarily arises. As regards filing of returns by the units of a political party at State or District levels is concerned, it will depend upon whether these units are only branches of the national party and their receipts and expenditure form part of the account of the national party. If so, the units need not file separate returns of income. In the case where units are separately registered as political parties with the Election Commission of India in terms of para 2 above, the requirement of filing of returns by these units will apply as in the case of parent unit.

Circular : No. 412 [F. No. 200/84/79-IT(A-I)], dated 2-3-1985.

808. Returns of income below taxable limit - Whether such returns are to be accepted at the receipt counters

1. Attention is invited to Instruction Nos. 1744 dated 21-1-1987 and 1765 dated 25-6-1987 in which Board have clarified that returns of income for the assessment year 1986-87 and subsequent years which are below taxable limit, should not be acted upon unless covered under the exceptions contained in the proviso to sub-section (10) of section 139. The Board, vide para 2(i) of Instruction No. 1744 dated 21-1-1987, desired that suitable instructions may be issued by the Commissioners of Income-tax in this regard.

2. It has been brought to the notice of the Board that no uniform practice is followed regarding receipt of such returns at the receipt counters. While in some charges instructions have been issued by the Commissioners not to accept such returns unless covered by the exceptions, in many charges the returns are being accepted, entered into registers and then treated as ‘non est’. Clarifications have also been sought by taxpayers’ associations and Commissioners of Income-tax on this issue.

3. The matter has, therefore, been examined by the Board with a view to having uniformity of procedure. In this background, I am directed to draw your attention to the forms of returns of income prescribed under the Rules and to say that there are specific columns in the return forms clearly indicating whether the return falls under any of the exceptions contained in the proviso to section 139(10) or not. For instances, columns (iii), (iv), (v) and (vi), Form No. 2 correspond to the exceptions contained in clauses (a), (e), (b) and (f) of the proviso respectively. Similarly, there are columns in all the other return forms from which the official receiving returns can ascertain whether a return which is below taxable limit falls under one of the exempted categories and is to be accepted.

4. It may be noted that all the returns filed in Form No. 3A have to be accepted as these fall under one of the exceptions contained in the said proviso. Similarly, all returns filed in Form No. 1 which pertain to companies are to be accepted. Though there is no column in the return forms to indicate that a return has been filed under section 139(2), such returns can also be identified at the receipt counters as these are normally accompanied by a covering letter or otherwise it is indicated on the return form itself by the assessee.

5. In view of these facts, identification of valid returns can be made even at the receipts counters. Therefore, returns which are not valid should not be accepted at the receipt counters. You [All Chief Commissioners and Commissioners of Income-tax] may kindly issue necessary instructions to the officers and staff working under you that the returns of income below taxable limit barring those covered under the exceptions contained in the proviso to section 139(10) are not to be received at the counter.

Circular : No. 493 [F. No. 201/64/86-IT(A-III)], dated 21-8-1987.

Judicial analysis

Relied on in - This circular was relied on in T.P.S. Builders (P.) Ltd. v. ACIT [1996] 59 ITD 220 (Cal.), with the following observations :

“. . . On critical analysis and judicial scrutiny of legal position we find that the return of loss so furnished does not fall under the mischief of section 139(10), which the non obstante clause, and the return so furnished is a valid return as per the Board’s circular No. 493, dated 21-9-1987. Once the return is declared valid and not non est under section 139(10), the assessment made in pursuance of that return is valid and, therefore, the departmental authorities have rightly decided the issue of business loss against the assessee . . . .” (p. 229)

809. Where firm’s accounts are to be audited, returns are to be filed by 31-10-1989 for assessment year 1989-90

1. Under the existing provisions of section 139(1) of the Income-tax Act, as amended by the Direct Tax Laws (Amendment) Act, 1987, with effect from 1-4-1989, a partnership firm, whose accounts are required to be audited under the Income-tax Act, or under any other law, can file its return by 31st October of the relevant assessment year. However, this time limit is not available to the partners of such a firm, if their own accounts are not required to be so audited.

2. Some representations have been received to the effect that such partners would not be able to file their returns by 31st August, as they would not know their correct share income in the firm by this date. Considering this difficulty, it has been decided that such partners may also be allowed to file their returns by 31st October. The Direct Tax Laws (Second Amendment) Bill, 1989, introduced in the Parliament on 18-8-1989 during the last Monsoon Session, contains a provision to this effect proposing to amend section 139(1) retrospectively, with effect from 1-4-1989. The Bill will come up for consideration in the next session of Parliament. However, as an interim measure, it has been decided that partners of such firms may also be allowed to file their returns by 31-10-1989. A Press Note to this effect was issued on 24-8-1989 for the general information of the taxpayers that such partners can also file their returns for the assessment year 1989-90 by 31st October, 1989.

A Press Note is given as Annexure to this circular. The Assessing Officers are advised not to insist upon such partners to file their returns for the assessment year 1989-90 by 31-8-1989.

ANNEXURE - PRESS NOTE

1. Under the present provisions of section 139(1) of the Income-tax Act, the due date for filing the return of income in the case of an assessee, whose accounts are required to be audited under the Income-tax Act or under any other law, is 31st October of the relevant assessment year. Therefore, a partnership firm, whose accounts are required to be so audited, can file its return by 31st October. However, under the existing law, the partners of such a firm, if their own accounts are not required to be so audited, have to file their returns by 31st August.

2. Representations were received pointing out that this would cause hardship in the case of partners of such a firm as they would not know their correct share income in the firm unless the accounts of the firm have been finalised, which work may be over, in many cases, towards the end of October. Hence, it would be difficult for the partners of the firm to file their returns of income by 31st August.

3. To avoid difficulties to partners in such situations, the Government has taken a decision that the persons who are partners in the firms, whose accounts are required to be audited, can also file their returns by 31st October. The Direct Tax Laws (Second Amendment) Bill, 1989, introduced in the Parliament on 18-8-1989, during the last Monsoon Session, contains a provision by which section 139(1) is proposed to be amended retrospectively with effect from 1-4-1989. The proposed amendment provides that the partners of such firms can also file their returns by 31st October. Instructions are being issued to the Assessing Officers not to insist upon such partners to file their returns for the assessment year 1989-90 by 31-8-1989.

Circular : No. 542, dated 30-8-1989.

810. Clarification on the use of challan forms with only three counterfoils for payment of advance tax and self-assessment tax

1. Board had recently  prescribed the form of challans with three counterfoils for payment of advance tax and self-assessment tax. Some problems have been reported in the implementation of the above decision. It has been reported that banks receiving payment of tax are retaining two counterfoils and returning only one foil to the taxpayer. As the taxpayer is expected to enclose proof of payment of advance tax and self-assessment tax along with the return of income, it has been pointed out that the absence of an extra foil for this purpose leads to difficulties.

2. The question has been examined in the Board. Currently, both types of challan, viz., having four counterfoils (the “old” challan) and three counterfoils (the “new” challan) are in use. Where the old challans are used, the existing distribution pattern will continue to be followed by the banks, viz.,

   1.  copy to the ZAO

   2.  copy to the ITO

   3.  copy to the taxpayer for his record

   4.  copy to the taxpayer to be annexed to the return.

Where the new challan forms are used, the three foils will be distributed by the banks as under :

1st counterfoil to the Assessing Officer (i.e., CTU)

2nd counterfoil to the ZAO

3rd counterfoil to the taxpayer for his record.

In such cases, the taxpayer may enclose with his return of income a photocopy (attested by him) of his copy of the foil No. 3, which will be adequate compliance with Explanation (c)(i)  to section 139(9) of the Income-tax  Act.

Circular : No. 697, dated 16-12-1994.

811. Withdrawal of challan forms with three counterfoils for payment of advance tax and self-assessment tax

1. Board’s Circular No. 697, dated 16-12-1994 states that when the challan forms with three counterfoils are used, the taxpayer may enclose with his return of income a photocopy of the foil No. 3 in compliance with the provisions of section 139(9) of the Income-tax Act, 1961.

2. Having regard to the difficulties faced by the taxpayers, it has been decided to withdraw challan forms with three counterfoils. Henceforth, challan forms will have four counterfoils. However, where the challans with the three counterfoils have been used, Circular No. 697 will continue to be in force.

Circular : No. 709, dated 19-7-1995.

812. Notified areas for purposes of first proviso to section 139(1)

Notification 1

In exercise of the powers conferred by the proviso to sub-section (1) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby specifies the following areas for the purposes of the said proviso, namely:—

   1.  Urban agglomeration of Mumbai including the areas comprised in ‘Greater Bombay’ within the meaning of the Bombay Municipal Corporation Act (Act No. 3 of 1888);

   2.  Urban agglomeration of Delhi including the following :

   (i)  the State of Delhi.

  (ii)  the area comprised in Gurgaon Municipal Committee within the meaning of the Punjab Government Gazette Part I No. 1405-14-61/5076 dated March 4, 1966;

(iii)  the areas comprised in Faridabad Complex of District Faridabad within the meaning of the Faridabad Complex (Regulation and Development) Act, 1975 (Haryana Act No. 10 of 1975);

(iv)  the areas comprised in Ghaziabad Municipality as notified under Uttar Pradesh Municipal Act, 1916 (U.P. Act No. 11 of 1916);

  (v)  the areas in the district of Ghaziabad (other than areas comprised in the Ghaziabad Municipality) notified by the Government of Uttar Pradesh, under Uttar Pradesh (Regulations of Building Operation) Act, 1958 (U.P. Act No. 34 of 1958) and regulated by the Ghaziabad Development Authority as constituted under Uttar Pradesh Urban Planning and Development Act, 1973 (U.P. Act No. 30 of 1974);

(vi)  the areas notified by the Government of Uttar Pradesh in Notification No. 2042-BHAU/18-11-123/AN/85 dated 11th July, 1989 under clause (d) of section 2 of the Uttar Pradesh Industrial Area Development Act, 1976 (U.P. Act No. 6 of 1976) and regulated by New Okhla Industrial Development Authority constituted under section 3 of the said Act.

   3.  Urban agglomeration of Chennai including the areas comprised in “Madras Metropolitan Planning Area” within the meaning of the Tamil Nadu Town and Country Planning Act, 1971 (Act No. 35 of 1972);

   4.  Urban agglomeration of Calcutta including the areas comprised in ‘Calcutta Metropolitan area’ within the meaning of the West Bengal Town and Country (Planning and Development) Act, 1979 (Act No. 13 of 1979);

   5.  Urban agglomeration of Bangalore including the areas comprised in the “Bangalore Metropolitan Region” within the meaning of the Bangalore Metropolitan Region Development Authority Act, 1985 (Karnataka Act No. 39 of 1985);

   6.  Urban agglomeration of Ahmedabad including the areas declared by State Government of Gujarat under section 22 of the Gujarat Town Planning and Urban Development Act, 1976 (Gujarat Act No. 27 of 1976) as “Ahmedabad Urban Development Area” and the areas comprised in the city of Ahmedabad constituted under section 3 of the Bombay Provincial Municipal Corporation Act, 1949 (Bombay Act No. LIX of 1949) applicable to the State of Gujarat;

   7.  Urban agglomeration of Kanpur including the areas comprised in the district of ‘Kanpur Nagar’ within the meaning of the Uttar Pradesh Land Revenue Act, 1901 (Uttar Pradesh Act No. III of 1901);

   8.  Urban agglomeration of Jaipur including the areas comprised in the ‘Jaipur region’ within the meaning of the Jaipur Development Authority Act, 1982 (Act No. 25 of 1982);

   9.  Urban agglomeration of Ludhiana including the areas comprised in the municipal limits of Ludhiana.

10.  Urban agglomeration of Hyderabad including the areas comprised in the ‘Municipal Corporation of Hyderabad’ within the meaning of the Hyderabad Municipal Corporation Act, 1955 (Act No. II of 1956) and the areas comprised in  ‘Civil area’ of Secunderabad Cantonment within the meaning of the Cantonments Act, 1924 (2 of 1924);

11.  Urban agglomeration of Pune including the areas comprised in the ‘City of Pune’ within the meaning of the Bombay Provincial Municipal Corporations Act, 1949 (Bom. LIX of 1949);

12.  Urban agglomeration of Chandigarh including the areas comprised in ‘Union Territory of Chandigarh’.

Notification : No. SO 468 (E), dated 27-6-1997.

Notification 2

In exercise of the powers conferred by the proviso to sub-section (1) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby specifies the following areas for the purposes of the said proviso, namely :—

1. Urban agglomeration of Surat including the areas comprised in the City of Surat constituted under section 3 of the Bombay Provincial Municipal Corporation Act, 1949 (Bombay Act No. LIX of 1949) as applicable to the State of Gujarat and areas declared by the State Government of Gujarat under section 22 of the Gujarat Town Planning and Urban Development Act, 1976 (Gujarat Act No. 27 of 1976) as ‘Surat Urban Development Area’.

2. Urban agglomeration of Vadodara including the areas comprised in the Vadodara Municipal Corporation under the Bombay Provincial Municipal Corporation Act, 1949 (Bombay Act No. LIX of 1949) and areas declared by the State Government of Gujarat under section 22 of the Gujarat Town Planning and Urban Development Act, 1976 (Gujarat Act No. 27 of 1976) as ‘Baroda Urban Development Area’.

3. Urban agglomeration of Kochi including the areas comprised in the ‘Greater Cochin Development Authority’ within the meaning of the Town Planning Act, 1108 (IV of 1108) and the Madras Town Planning Act, 1920 (VII of 1920).

4. Urban agglomeration of Kozhikode including the areas comprised in the corporation of Kozhikode.

5. Urban agglomeration of Trivandrum including the areas comprised in the “Trivandrum Development Authority” within the meaning of the Town Planning Act, 1108 (Kerala Act No. IV of 1108 Malayalam Era).

6. Urban agglomeration of Coimbatore including the areas comprised in the ‘city of Coimbatore’ within the meaning of the Coimbatore City Municipal Corporation Act, 1981 (Tamilnadu Act No. XXV of 1981).

7. Urban agglomeration of Madurai including the areas comprised in the ‘city of Madurai’ within the meaning of the Madurai City Municipal Corporation Act, 1971 (Tamilnadu Act No. XV of 1971).

8. Urban agglomeration of Bhopal including the areas as notified under Madhya Pradesh Nagar Tatha Gram Nivesh Adhiniyam, 1973 (23 of 1973), vide Notification No. 3773-XXXII-95 dated 9-6-1995 published in the M.P. Gazette (Extraordinary) No. 273 dated 9-6-1995.

9. Urban agglomeration of Indore including the areas comprised in the ‘Indore Vikas Pradhikaran’ within the meaning of Madhya Pradesh Nagar Tatha Gram Nivesh Adhiniyam, 1973 (No. 23 of 1973).

10. Urban agglomeration of Jabalpur including the areas as notified by the Government of Madhya Pradesh under Madhya Pradesh Municipal Corporation Act, 1956 as per M.P. Gazette (Extraordinary) vide Notification No. 382 dated 12-8-1994.

11. Urban agglomeration of Vijayawada including the areas as defined by Vijayawada Municipal Corporation Act, 1981.

12. Urban agglomeration of Visakhapatnam including the areas as defined by the Visakhapatnam Municipal Corporation Act, 1979.

13. Urban agglomeration of Agra including the areas comprising the territorial limits of Agra city as per Notification No. 2666-A/11-S(V)-7-6/ K(1)-79, dated 8th July, 1982 published in UP Government Gazette, the territorial limit of Cantonment Board, Agra and the territorial limit of Dayalbagh Town Area Committee, Agra, as per Notification No. 3981/9-1-93-IT-101/93, dated 12-8-1993.

14. Urban agglomeration of Meerut including the areas comprising the areas of Municipal Corporation of Meerut including the area of Meerut Cantonment.

15. Urban agglomeration of Allahabad including the areas comprised in the city of Allahabad within the meaning of the UP Nagar Nigam Act, 1959.

16. Urban agglomeration of Lucknow including the areas comprised in the city of Lucknow within the meaning of the UP Nagar Mahapalika Adhiniyam, 1959, read with section 21 of the Uttar Pradesh General Clauses Act, 1904 (UP Act No. 1 of 1904) and the areas specified in the schedule under Notification No. 4516-A/XI-7-86-IK (37)-83, dated February 3, 1987.

17. Urban agglomeration of Varanasi including the areas defined as development area in the notification issued by the UP State Government from time to time in exercise of powers under section 3 of the UP Urban Planning and Development Act, 1973 (President’s Act No. 11 of 1973).

18. Urban agglomeration of Dhanbad including the areas falling in the municipality of Dhanbad including Jagjivan Nagar and Saraidhella as well as areas comprised in the jurisdiction of the three notified area committee, i.e., Jharia Notified Area Committee, Katra Notified Area Committee, Chirukunda Notified Area Committee.

19. Urban agglomeration of Patna including the areas comprised in ‘Patna’ within the meaning of the Patna Municipal Corporation Act, 1951 (No. 23 of 1956).

20. Urban agglomeration of Jamshedpur including areas comprised within the jurisdiction of Jamshedpur Notified Area Committee, Mango Notified Area Committee/Municipality, Adityapur Notified Area Committee/Municipality and Jugsalai Municipality.

21. Urban agglomeration of Kalyan including the areas comprised in the twin ‘Cities of Kalyan and Ulhasnagar within the meaning of the Bombay Provincial Municipal Corporation Act, 1949.

22. Urban agglomeration of Nagpur including the areas comprised in the ‘City of Nagpur’ within the meaning of the Nagpur Corporation Act, 1948.

23. Urban agglomeration of Thane including the areas comprised in the ‘City of Thane’ within the meaning of the Bombay Provincial Municipal Corporation Act, 1949 (Bom. LIX of 1949).

Notification : No. SO 669(E), dated 6-8-1998.

Notification 3

In exercise of the powers conferred by the first proviso to sub-section (1) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby specifies the following areas for the purposes of the said proviso, namely:—

Urban agglomeration of—

   1.  Amritsar including the areas in Municipal Corporation of Amritsar as notified by Punjab State Government under sub-rule (3) of rule 3 of Punjab Municipal Corporation Act, 1971 and including the areas under the Cantonment Board, Amritsar as notified by the Central Government under section 3 of the Cantonment Act, 1924;

   2.  Asansol including the areas comprised in the Municipal Corporation of Asansol;

   3.  Aurangabad including the areas comprised in the Municipal Corporation of Aurangabad as constituted under the Bombay Provincial Municipal Corporation Act, 1949 (LIX of 1949);

   4.  Bareilly including areas comprised in the city of Bareilly within the meaning of Bareilly Development Authority, as notified by Government of Uttar Pradesh;

   5.  Durg including the areas as notified in the notification number 291/18-1/81 dated 31-3-1981; and Bhillai including areas as notified as per notification number 22/F-1-7/18-3/98 dated 8-6-1998 under the Madhya Pradesh Municipal Corporation Act, 1956 (23 of 1956);

   6.  Gorakhpur including the areas defined as development areas as notified by Uttar Pradesh State Government from time to time in exercise of the powers under section 3 of the Uttar Pradesh Urban Planning and Development Act, 1973 (President’s Act number 11 of 1973);

   7.  Guwahati including the areas comprised in the city of Guwahati within the meaning of Guwahati Municipal Corporation Act, 1971 (Assam Act 1 of 1973);

   8.  Gwalior including the areas as notified under Madhya Pradesh Municipal Corporation Act, 1956 (23 of 1956);

   9.  Hubli-Dharwad including the areas as notified by the Government of Karnataka in the notification number HUD 378.MLR.95 dated 12-10-1995 and any subsequent amendments in the said notifications;

10.  Jalandhar including the areas as notified by the Municipal Corporation. Jalandhar;

11.  Jodhpur including the areas as notified by the Government of Rajasthan in the notification number F.1(12)TP/72 dated 1-9-1977 issued under the Rajasthan Urban Improvement Act, 1959 (35 of 1959);

12.  Kota including the areas as notified by the Government of Rajasthan under the Rajasthan Urban Improvement Act, 1959 (35 of 1959);

13.  Mysore including the areas as notified by the Karnataka Government in the notification number HUD 444.MLR.95 dated 30-11-1995 and any subsequent, amendments in the said notification;

14.  Nasik including the areas comprised in the Municipal Corporation of Nasik as constituted under Bombay Provincial Municipal Corporation Act, 1949 (LIX of 1949);

15.  Rajkot including areas within Rajkot Municipal Corporation as defined in the Schedule to the Gujarat Municipality Act, 1963 and the areas included in the city of Rajkot vide Government of Gujarat notification number KV-68-1988-RMN-8095-3120P dated 17-6-1998;

16.  Ranchi including the areas comprised in the Ranchi Municipal Corporation (Division of Ranchi into Wards) Rules, 1981;

17.  Salem including the areas comprised in the Salem Municipal Corporation within the meaning of Salem City Municipal Corporation Act, 1994 in G.O. Ms. No. 153 (MA&WS) dated 1-6-1994;

18.  Solapur including the areas comprised in the Municipal Corporation of Solapur as constituted under Bombay Provincial Municipal Corporation Act, 1949 (LIX of 1949);

19.  Tiruchirapalli including the areas that are comprised in the Tiruchirapalli Municipal Corporation within the meaning of Tiruchirapalli City Municipal Corporation Act, 1994 in G.O.Ms. No. 151, dated 1-6-1994.

Notification: No. SO 242(E), dated 9-4-1999.

NOTIFICATION 4

In exercise of the powers conferred by the first proviso to sub-section (1) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby specifies the following areas for the purposes of the said proviso, namely :—

Urban agglomeration of—

   1.  Ahmednagar including the areas comprised in the Municipality of Ahmednagar within the meaning of the Maharashtra Nagar Parishada Nagar Panchayat and Industrial Town Act, 1965;

   2.  Ajmer including the areas as notified in the Government of Rajasthan Notification No. F 1(5) TP/72, dated 16th August, 1976 within the meaning of the Rajasthan Urban Improvement Act, 1959;

   3.  Akola including the areas comprised in the city of Akola within the meaning of the Maharashtra Municipal Councils Nagar Panchayat and Industrial Township Act, 1965;

   4.  Alappuzha (Alleppey) including the areas comprised in Alappuzha Municipality;

   5.  Aligarh including the areas comprised in the Municipal Corporation of Aligarh;

   6.  Alwar including the areas as notified in the Government of Rajasthan Notification No. F 1/2/LSG/63/63948-950, dated 30th April, 1976 within the meaning of the Rajasthan Municipal Act, 1959;

   7.  Amravati including the areas comprised in the city of Amravati within the meaning of the Amravati Municipal Corporation Act, 1983;

   8.  Barddhaman (Burdwan) including the areas comprised in the Burdwan Municipality within the meaning of the West Bengal Municipal Act, 1993;

   9.  Belgaum including the areas of Municipal Corporation of Belgaum city as notified by the Karnataka Government in the Notification No. HUD.282.MLR 95 - dated 18-10-1995 and the areas of Belgaum Cantonment Board vide Gazette Notification No. SRO 202, dated 16-4-1970 and SRO No. 527 of 1875;

10.  Bellary including the urban agglomeration of Bellary city including the areas as notified by the Karnataka Government in the Notification No. HUD.306 MLR 95, dated 26-7-1995;

11.  Berhampur (Brahmapur) including (i) the areas comprised in the Berhampur Municipality within the meaning of the Orissa Municipal Act, 1950; and (ii) the areas comprised in the Berhampur Development Authority within the meaning of the Orissa Development Authorities Act, 1982;

12.  Bhagalpur including the areas comprised in Bhagalpur within the meaning of the Bhagalpur Municipal Corporation Act vide  S.O. 485,  dated 16-4-1981;

13.  Bhavnagar including the areas falling within the Bhavnagar Municipal Corporation as defined under the Bombay Provincial Corporation Act, 1949 by Notification dated 12-2-1982;

14.  Bhiwandi including the areas comprised in the Municipal Council of Bhiwandi Nizampur within the meaning of the Maharashtra Municipalities Act, 1965;

15.  Bhubaneswar including (i) the areas comprised in the Bhubaneswar Municipality within the meaning of the Orissa Municipal Act, 1950; and (ii) the areas comprised in the Bhubaneswar Development Authority within the meaning of the Orissa Development Authorities Act, 1982;

16.  Biharsharif including the areas comprised in Biharsharif within the meaning of the Biharsharif Municipal Corporation Act, dated 21-6-1988;

17.  Bikaner including the areas as notified in the Government of Rajasthan Notification No. F 1(12) LSG/74/345, dated 19-2-1982 within the meaning of the Rajasthan Municipal Act, 1959;

18.  Bilaspur including the areas comprised in the Municipal Corporation of Bilaspur as notified by the Government of Madhya Pradesh in Notification No. 755-XVIII-I-80, dated 27-2-1980 within the meaning of Madhya Pradesh Municipal Corporation Act, 1956;

19.  Bokaro Steel City;

20.  Chandrapur including the areas comprised in the city of Chandrapur within the meaning of the Maharashtra Municipal Councils Nagar Panchayat and Industrial Township Act, 1965;

21.  Cuddapah including the areas comprised in the Cuddapah Municipality;

22.  Cuttack including (i) the areas comprised in the Cuttack Municipality within the meaning of the Orissa Municipal Act, 1950; and (ii) the areas comprised in the Cuttack Development Authority within the meaning of the Orissa Development Authority Act, 1982;

23.  Darbhanga including the areas comprised in Darbhanga within the meaning of the Darbhanga Municipal Corporation Act vide S.O. 1280, dated 23-8-1982;

24.  Davangere including the areas of Davangere city as notified by the Karnataka Government in the Notification No. HUD. 35 I MLR 95 dated 7-10-1995;

25.  Dehradun including the areas comprised in Municipal Corporation of Dehradun;

26.  Dhule including the areas comprised in the Municipality of Dhule within the meaning of the Maharashtra State Town Planning Rules, 1966;

27.  Durgapur including the areas comprised in the Durgapur Municipal Corporation within the meaning of the Durgapur Municipal Corporation Act, 1994;

28.  Ellore including the areas comprised in the Ellore Municipality;

29.  Erode including the areas comprised in the Erode Municipality within the meaning of the Tamilnadu District Municipalities Act, 1920;

30.  Farrukhabad-cum-Fatehgarh including the areas comprised in the Nagarpalika Parishad of Farrukhabad-Fatehgarh;

31.  Ferozabad including areas comprised in the Nagarpalika of Ferozabad;

32.  Gaya including the areas comprised in Gaya within the meaning of the Gaya Municipal Corporation Act vide S.O. 1390, dated 18-11-1983;

33.  Gulbarga including the areas of Gulbarga city including the areas as notified by the Karnataka Government in the Notification No. HUD. 401 MLR 95, dated 19-10-1995;

34.  Guntur including the areas comprised in the Municipal Corporation of Guntur;

35.  Ichalkaranji including the areas comprised in the Municipality of Ichalkaranji within the meaning of the Maharashtra Nagarpanchayat Adhiniyam Act, 1965;

36.  Imphal including the areas comprised within the Imphal Municipal Council;

37.  Jalgaon including the areas comprised in the Municipality of Jalgaon within the meaning of the Maharashtra Municipal Councils Nagar Panchayat Act, 1965;

38.  Jamnagar including the areas falling within the Jamnagar Municipal Corporation as defined in the Notification No. JMK/1194-2-95, dated 8-3-1995 issued by the State Assembly Election Commission, Gujarat;

39.  Jhansi including areas comprised in the Jhansi Municipality and Cantonment Board limits of Jhansi;

40.  Kakinada including the areas comprised in the Kakinada Municipality;

41.  Kannur (Cannanore) including the areas comprised in Kannur Municipality;

42.  Kharaghpur including the areas comprised in the Kharaghpur Municipality;

43.  Kolhapur including the areas comprised in the Municipal Corporation of Kolhapur within the meaning of the Bombay Provincial Municipal Corporation Act, 1949;

44.  Kollam (Quilon) including the areas comprised in Kollam Municipality;

45.  Kurnool including the areas comprised in the Kurnool Municipal Corporation;

46.  Malegaon including the areas comprised in the Municipality of Malegaon within the meaning of the Maharashtra Nagar Parishada Nagar Panchayat and Industrial Town Act, 1965;

47.  Mangalore including the areas of Mangalore city as notified by the Karnataka Government in the Notification No. MD. 174/UMS/95,  dated 16-3-1997;

48.  Mathura including areas comprised in the Nagarpalika of Mathura;

49.  Moradabad including the areas comprised in the municipal limits of Moradabad city as defined vide Notification No. 2474/9-7-94(M.B.)/94, dated 4-8-1994 by the Government of Uttar Pradesh;

50.  Muzaffarnagar including the areas comprised in the Muzaffarnagar Nagarpalika Parishad;

51.  Muzaffarpur including the areas comprised in Muzaffarpur Municipal Corporation within the meaning of the Muzaffarpur Municipal Corporation Act vide S.O. 487, dated 16-4-1981;

52.  Nanded including the areas comprised in the Municipality of Nanded within the meaning of the Maharashtra Nagar Parishada Nagar Panchayat and Industrial Town Act, 1965;

53.  Nellore including the areas comprised in the Nellore Municipality;

54.  Nizamabad including the areas comprised in the Municipal Corporation of Nizamabad;

55.  Ondal;

56.  Patiala including the areas comprised in the Municipal Corporation of Patiala, Patiala Cantonment and all phases of urban estate developed by Patiala Urban Development Authority;

57.  Pondicherry including the areas comprised in the Pondicherry Municipality Council within the meaning of the Pondicherry Municipalities Act, 1973;

58.  Raipur including the areas comprised in the Municipal Corporation of Raipur as notified by the Government of Madhya Pradesh in Notification No. 48-XVIII-2-77, dated 21-2-1977 within the meaning of Madhya Pradesh Municipal Corporation Act, 1956;

59.  Rajahmundry including the areas comprised in the Municipal Corporation of Rajahmundry;

60.  Ramagundam including the areas comprised in the Municipal Corporation of Ramagundam;

61.  Rampur including the areas comprised in the municipal limits of Rampur city as defined in Extraordinary Gazette dated 1-2-1944 of Rampur State;

62.  Rohtak including the areas comprised in the municipal limits of Rohtak City within the meaning of Municipal Act, 1973 of Haryana State and areas developed by Haryana Urban Development Authority vide the Notification dated 23-12-1984;

63.  Rourkela including (i) the areas comprised in the Rourkela Municipality within the meaning of Orissa Municipal Act, 1950; and (ii) the areas comprised in the Rourkela Industrial Township as notified in Orissa Gazette dated 15th April, 1996 within the meaning of the Orissa Municipal Act, 1950;

64.  Sagar including the areas notified by the Government of Madhya Pradesh in Notification No. 202-32-1-85, dated 11-1-1985 and amendment of Madhya Pradesh Gazette Extraordinary No. 490,  dated 1-9-1998;

65.  Saharanpur including the areas comprised in the Saharanpur Municipality;

66.  Sangli including the areas comprised in the Municipal Corporation of Sangli-Miraj & Kupwad within the meaning of the Bombay Provincial Municipal Corporation Act, 1949;

67.  Shahjahanpur including the area comprised in the municipal limits of Shahjahanpur city as defined in Notification No. 652/Eleven/24-B/1968, dated 25-5-1978 of Government of Uttar Pradesh;

68.  Shillong including the areas comprised within the Shillong Municipal Board;

69.  Siliguri including the areas comprised in the Municipal Corporation of Siliguri within the meaning of Siliguri Municipal Corporation Act, 1990;

70.  Thanjavur including the areas comprised in the Thanjavur Municipality within the meaning of the Tamilnadu District Municipalities Act, 1920;

71.  Tirunelveli including the areas comprised in the Tirunelveli Municipal Corporation within the meaning of the Tirunelveli City Municipal Corporation Act, 1994;

72.  Tiruppur including the areas comprised in the Tiruppur Municipality within the meaning of the Tamilnadu District Municipalities Act, 1920;

73.  Trissur (Trichur) including the areas comprised in the Trissur Municipality;

74.  Tuticorin including the areas comprised in the Tuticorin Municipality within the meaning of the Tamilnadu District Municipalities Act, 1920;

75.  Udaipur including the areas as notified in the Government of Rajasthan Notification No. F(1)(2)TP/63, dated 27th June, 1983 within the meaning of the Rajasthan Urban Improvement Act, 1959;

76.  Ujjain including the areas notified within the meaning of the Urban Land (Ceiling and Regulation) Act, 1976 and the areas comprised in the Ujjain Vikas Pradhikaran;

77.  Vellore including the areas comprised in the Vellore Municipality within the meaning of the Tamilnadu District Municipalities Act, 1920;

78.  Warangal including the areas comprised in the Municipal Corporation of Warangal;

79.  Yamunanagar including the areas comprised in the municipal limits of Yamunanagar within the meaning of the Municipal Act, 1973 of Haryana State and the areas developed by Haryana Urban Development Authority.

Notification : No. SO 372(E), dated 10-4-2000.

Notification 5

In exercise of the powers conferred by the proviso to sub-section (1) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby specifies the following areas for the purposes of the said proviso, namely :—

All urban areas in the country [other than the urban areas specified in notification vide SO No. 468(E), dated 27th June, 1997, SO No. 669(E), dated 6th August, 1998, SO No. 242(E), dated 9th April, 1999 and SO No. 372(E), dated 10th April, 2000], defined by the 1991 Census of India as comprising :

  (a)  All places with municipality, corporation, cantonment board or any notified town area committee;

  (b)  All outgrowths of places referred to in (a) above;

  (c)  All other places which satisfy the following criteria :

   (i)  a minimum population of five thousand;

  (ii)  at least seventy-five per cent of male working population engaged in non-agricultural pursuits;

(iii)  a density of population of not less than four hundred persons per square kilometer.

Note : Urban areas will include ‘Towns and Urban Agglomerations, 1991’ as listed in Table A-4 of the Second Part of Part II-A of Series-I of the Census of India, 1991.

Notification : No. SO 410(E), dated 10-5-2001.

813. Specified floor areas for purposes of clause (i) of first proviso to section 139(1)

Notification 1

In exercise of the powers conferred by the proviso to sub-section (1) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby specifies in the table below, the following floor areas for the purposes of clause (i) of the said proviso :

TABLE

Sl. No.

Place

Property used for residential (other than for huts & kutcha dwellings) purposes

Property used commercial purposes

 

Urban agglomeration of

 

 

(i)

Delhi

600 sq.ft.

100 sq. ft.

(ii)

Mumbai

600 sq. ft.

100 sq. ft.

(iii)

Chennai

1000 sq. ft.

125 sq. ft.

(iv)

Calcutta

1000 sq. ft.

125 sq. ft.

(v)

Bangalore

800 sq. ft.

125 sq. ft.

(vi)

Hyderabad

1100 sq. ft.

125 sq. ft.

(vii)

Jaipur

1100 sq. ft.

125 sq. ft.

(viii)

Kanpur

1100 sq. ft.

175 sq. ft.

(ix)

Pune

800 sq. ft.

125 sq. ft.

(x)

Ahmedabad

800 sq. ft.

125 sq. ft.

(xi)

Ludhiana

800 sq. ft.

125 sq. ft.

(xii)

Chandigarh

1100 sq. ft.

125 sq. ft.

Notification : No. SO 467(E), dated 27-6-1997.

Notification 2

In exercise of the powers conferred by the proviso to sub-section (1) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby specifies in the table below, the following floor areas for the purposes of clause (i) of the said proviso, namely :—

Table

Sl. No.

Place

Property used for residential (other than huts & kutcha dwellings) purposes (sq.ft.)

Property used for commercial purposes (sq.ft.)

 

Urban agglomeration of—

 

 

(i)

Surat

1100

125

(ii)

Vadodara

1100

175

(iii)

Kochi

1100

125

(iv)

Kozhikode

1100

175

(v)

Trivandrum

1100

175

(vi)

Coimbatore

1100

125

(vii)

Madurai

1100

175

(viii)

Bhopal

1100

175

(ix)

Indore

1100

125

(x)

Jabalpur

1100

175

(xi)

Vijayawada

1100

175

(xii)

Visakhapatnam

1100

175

(xiii)

Agra

1100

175

(xiv)

Meerut

1100

175

(xv)

Allahabad

1100

175

(xvi)

Lucknow

1100

175

(xvii)

Varanasi

1100

175

(xviii)

Dhanbad

1100

175

(xix)

Patna

1100

175

(xx)

Jamshedpur

1100

175

(xxi)

Kalyan

1100

175

(xxii)

Nagpur

1100

125

(xxiii)

Thane

1100

175

Notification : No. SO 668(E), dated 6-8-1998.

Notification 3

In exercise of the powers conferred by the first proviso to sub-section (1) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby specifies the immovable properties, referred to below as immovable properties, for the purposes of clause (i) of the said proviso—

  (a)  occupying the floor area of 1100 sq. ft. or more in respect of immovable property used for residential (other than huts and kutcha dwellings) purposes; and

  (b)  occupying the floor area of 175 sq. ft. or more in respect of immovable property used for commercial purposes, in the following areas specified by Board, namely:—

Urban agglomeration of—

   1.  Amritsar including the areas in Municipal Corporation of Amritsar as notified by Punjab State Government under sub-rule (3) of rule 3 of Punjab Municipal Corporation Act, 1971 and including the areas under the Cantonment Board, Amritsar as notified by the Central Government under section 3 of the Cantonment Act, 1924;

   2.  Asansol including the areas comprised in the Municipal Corporation of Asansol;

   3.  Aurangabad including the areas comprised in the Municipal Corporation of Aurangabad as constituted under Bombay Provincial Municipal Corporation Act, 1949 (LIX of 1949);

   4.  Bareilly including areas comprised in the city of Bareilly within the meaning of Bareilly Development Authority, as notified by Government of Uttar Pradesh;

   5.  Durg including the areas as notified in the notification number 291/18-1/81 dated 31-3-1981; and Bhillai including areas as notified as per notification number 22/F-1-7/18-3/98 dated 8-6-1998 under Madhya Pradesh Municipal Corporation Act, 1956 (23 of 1956);

   6.  Gorakhpur including the areas defined as development area as notified by Uttar Pradesh State Government from time to time in exercise of powers under section 3 of the Uttar Pradesh Urban Planning and Development Act, 1973 (President’s Act number 11 of 1973);

   7.  Guwahati including the areas comprised in the city of Guwahati within the meaning of Guwahati Municipal Corporation Act, 1971 (Assam Act 1 of 1973);

   8.  Gwalior including the areas as notified under Madhya Pradesh Municipal Corporation Act, 1956 (23 of 1956);

9.  Hubli-Dharwad including the areas as notified by the Government of Karnataka in the notification number HUD 378.MLR.95 dated 12-10-1995 and any subsequent amendments in the said notifications ;

10.  Jalandhar including the areas as notified by the Municipal Corporation, Jalandhar;

11.  Jodhpur including the areas as notified by the Government of Rajasthan in the notification number F.1(12)TP/72 dated 1-9-1977 issued under the Rajasthan Urban Improvement Act, 1959 (35 of 1959);

12.  Kota including the areas as notified by the Government of Rajasthan under the Rajasthan Urban Improvement Act, 1959 (35 of 1959);

13.  Mysore including the areas as notified by the Karnataka Government in the notification number HUD 444.MLR.95 dated 30-11-1995 and any subsequent, amendments in the said notification;

14.  Nasik including the areas comprised in the Municipal Corporation of Nasik as constituted under Bombay Provincial Municipal Corporation Act, 1949 (LIX of 1949);

15.  Rajkot including areas within Rajkot Municipal Corporation as defined in the Schedule to the Gujarat Municipality Act, 1963 and the areas included in the city of Rajkot vide Government of Gujarat notification number KV-68-1988-RMN-8095-3 120P dated 17-6-1998;

16.  Ranchi including the areas comprised in the Ranchi Municipal Corporation (Division of Ranchi into Wards) Rules, 1981;

17.  Salem including the areas comprised in the Salem Municipal Corporation within the meaning of Salem City Municipal Corporation Act, 1994 in G.O. Ms. No. 153 (MA&WS) dated 1-6-1994;

18.  Solapur including the areas comprised in the Municipal Corporation of Solapur as constituted under Bombay Provincial Municipal Corporation Act, 1949 (LIX of 1949);

19.  Tiruchirapalli including the areas that are comprised in the Tiruchirapalli Municipal Corporation within the meaning of Tiruchirapalli City Municipal Corporation Act, 1994 in G.O.Ms. No. 151 dated 1-6-1994.

Notification : No. SO. 243(E), dated 9-4-1999.

Notification 4

In exercise of the powers conferred by the first proviso to sub-section (1) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby specifies the immovable properties, referred to below as immovable properties, for the purposes of clause (i) of the said proviso—

  (a)  occupying the floor area of 1500 sq. ft. or more in respect of immovable property used for residential (other than huts and kutcha dwellings) purposes; and

  (b)  occupying the floor area of 225 sq. ft. or more in respect of immovable property used for commercial purposes,

in the following areas specified by the Board, namely :—

Urban agglomeration of—

   1.  Ahmednagar including the areas comprised in the Municipality of Ahmednagar within the meaning of the Maharashtra Nagar Parishada Nagar Panchayat and Industrial Town Act, 1965;

   2.  Ajmer including the areas as notified in the Government of Rajasthan Notification No. F 1 (5) TP/72, dated 16th August, 1976 within the meaning of the Rajasthan Urban Improvement Act, 1959;

   3.  Akola including the areas comprised in the city of Akola within the meaning of the Maharashtra Municipal Councils Nagar Panchayat and Industrial Township Act, 1965;

   4.  Alappuzha (Alleppey) including the areas comprised in Alappuzha Municipality;

   5.  Aligarh including the areas comprised in the Municipal Corporation of Aligarh;

   6.  Alwar including the areas as notified in the Government of Rajasthan Notification No. F. 1/2/LSG/63/63948-950, dated 30th April, 1976 within the meaning of the Rajasthan Municipal Act, 1959;

   7.  Amravati including the areas comprised in the city of Amravati within the meaning of the Amravati Municipal Corporation Act, 1983;

   8.  Barddhaman (Burdwan) including the areas comprised in the Burdwan Municipality within the meaning of the West Bengal Municipal Act, 1993;

   9.  Belgaum including the areas of Municipal Corporation of Belgaum city as notified by the Karnataka Government in the Notification No. HUD.282.MLR.95, dated 18-10-1995 and the areas of Belgaum Cantonment Board vide Gazette Notification No. SRO 202, dated 16-4-1970 and SRO No. 527 of 1875;

10.  Bellary including the urban agglomeration of Bellary city including the areas as notified by the Karnataka Government in the Notification No. HUD.306 MLR 95, dated 26-7-1995;

11.  Berhampur (Brahmapur) including (i) the areas comprised in the Berhampur Municipality within the meaning of the Orissa Municipal Act, 1950; and (ii) the areas comprised in the Berhampur Development Authority within the meaning of the Orissa Development Authorities Act, 1982;

12.  Bhagalpur including the areas comprised in Bhagalpur within the meaning of the Bhagalpur Municipal Corporation Act, vide S.O. 485, dated 16-4-1981;

13.  Bhavnagar including the areas falling within the Bhavnagar Municipal Corporation as defined under the Bombay Provincial Corporation Act, 1949 by Notification dated 12-2-1982;

14.  Bhiwandi including the areas comprised in the Municipal Council of Bhiwandi Nizampur within the meaning of the Maharashtra Municipalities Act, 1965;

15.  Bhubaneswar including (i) the areas comprised in the Bhubaneswar Municipality within the meaning of the Orissa Municipal Act, 1950; and (ii) the areas comprised in the Bhubaneswar Development Authority within the meaning of the Orissa Development Authorities Act, 1982;

16.  Biharsharif including the areas comprised in Biharsharif within the meaning of the Biharsharif Municipal Corporation Act, dated 21-6-1988;

17.  Bikaner including the areas as notified in the Government of Rajasthan Notification No. F 1 (12) LSG/74/345, dated 19th February, 1982 within the meaning of the Rajasthan Municipal Act, 1959;

18.  Bilaspur including the areas comprised in the Municipal Corporation of Bilaspur as notified by the Government of Madhya Pradesh in Notification No. 755-XVIII-I-80, dated 27-2-1980 within the meaning of the Madhya Pradesh Municipal Corporation Act, 1956;

19.  Bokaro Steel City;

20.  Chandrapur including the areas comprised in the city of Chandrapur within the meaning of the Maharashtra Municipal Councils Nagar Panchayat and Industrial Township Act, 1965;

21.  Cuddapah including the areas comprised in the Cuddapah Municipality;

22.  Cuttack including (i) the areas comprised in the Cuttack Municipality within the meaning of the Orissa Municipal Act, 1950; and (ii) the areas comprised in the Cuttack Development Authority within the meaning of the Orissa Development Authorities Act, 1982;

23.  Darbhanga including the areas comprised in Darbhanga within the meaning of the Darbhanga Municipal Corporation Act vide S.O. 1280 dated 23-8-1982;

24.  Davangere including the areas of Davangere city as notified by the Karnataka Government in the Notification No. HUD.35 I MLR 95, dated 7-10-1995;

25.  Dehradun including the areas comprised in Municipal Corporation of Dehradun;

26.  Dhule including the areas comprised in the Municipality of Dhule within the meaning of the Maharashtra State Town Planning Rules, 1966;

27.  Durgapur including the areas comprised in the Durgapur Municipal Corporation within the meaning of Durgapur Municipal Corporation Act, 1994;

28.  Ellore including the areas comprised in the Ellore Municipality;

29.  Erode including the areas comprised in the Erode Municipality within the meaning of the Tamilnadu District Municipalities Act, 1920;

30.  Farrukhabad-cum-Fatehgarh including the areas comprised in the Nagarpalika Parishad of Farrukhabad-Fatehgarh;

31.  Ferozabad including areas comprised in the Nagarpalika of Ferozabad;

32.  Gaya including the areas comprised in Gaya within the meaning of the Gaya Municipal Corporation Act vide S.O. 1390, dated 18-11-1983;

33.  Gulbarga including the areas of Gulbarga city including the areas as notified by the Karnataka Government in the Notification No. HUD. 401 MLR 95 dated, 19-10-1995;

34.  Guntur including the areas comprised in the Municipal Corporation of Guntur;

35.  Ichalkaranji including the areas comprised in the Municipality of Ichalkaranji within the meaning of the Maharashtra Nagarpanchayat Adhiniyam Act, 1965;

36.  Imphal including the areas comprised within the Imphal Municipal Council;

37.  Jalgaon including the areas comprised in the Municipality of Jalgaon within the meaning of the Maharashtra Municipal Councils Nagar Panchayat Act, 1965;

38.  Jamnagar including the areas falling within the Jamnagar Municipal Corporation as defined in the Notification No. JMK/1194-2-95 dated 8-3-1995 issued by the State Assembly Election Commission, Gujarat;

39.  Jhansi including the areas comprised in the Jhansi Municipality and Cantonment Board limits of Jhansi;

40.  Kakinada including the areas comprised in the Kakinada Municipality;

41.  Kannur (Cannanore) including the areas comprised in the Kannur Municipality;

42.  Kharaghpur including the areas comprised in the Kharaghpur Municipality;

43.  Kolhapur including the areas comprised in the Municipal Corporation of Kolhapur within the meaning of the Bombay Provincial Municipal Corporation Act, 1949;

44.  Kollam (Quilon) including the areas comprised in the Kollam Municipality;

45.  Kurnool including the areas comprised in the Kurnool Municipal Corporation;

46.  Malegaon including the areas comprised in the Municipality of Malegaon within the meaning of the Maharashtra Nagar Parishada Nagar Panchayat and Industrial Town Act, 1965;

47.  Mangalore including the areas of the Mangalore city as notified by the Karnataka Government in the Notification No. MD. 174/UMS/95, dated 16-3-1997;

48.  Mathura including the areas comprised in the Nagarpalika of Mathura;

49.  Moradabad including the areas comprised in the municipal limits of Moradabad city as defined vide Notification No. 2474/9-7-94 (M.B.)/94, dated 4-8-1994 by the Government of Uttar Pradesh;

50.  Muzaffarnagar including the areas comprised in the Muzaffarnagar Nagarpalika Parishad;

51.  Muzaffarpur including the areas comprised in Muzaffarpur Municipal Corporation within the meaning of the Muzaffarpur Municipal Corporation Act vide S.O. 487 dated 16-4-1981;

52.  Nanded including the areas comprised in the Municipality of Nanded within the meaning of the Maharashtra Nagar Parishada Nagar Panchayat and Industrial Town Act, 1965;

53.  Nellore including the areas comprised in the Nellore Municipality;

54.  Nizamabad including the areas comprised in the Municipal Corporation of Nizamabad;

55.  Ondal;

56.  Patiala including the areas comprised in the Municipal Corporation of Patiala, Patiala Cantonment and all phases of urban estate developed by Patiala Urban Development Authority;

57.  Pondicherry including the areas comprised in the Pondicherry Municipality Council within the meaning of the Pondicherry Municipalities Act, 1973;

58.  Raipur including the areas comprised in the Municipal Corporation of Raipur as notified by the Government of Madhya Pradesh in Notification No. 48-XVIII-2-77, dated 21-2-1977 within the meaning of Madhya Pradesh Municipal Corporation Act, 1956;

59.  Rajahmundry including the areas comprised in the Municipal Corporation of Rajahmundry;

60.  Ramagundam including the areas comprised in the Municipal Corporation of Ramagundam;

61.  Rampur including the areas comprised in the municipal limits of Rampur city as defined in Extraordinary Gazette dated 1-2-1944 of Rampur State;

62.  Rohtak including the areas comprised in the municipal limits of Rohtak City within the meaning of Municipal Act, 1973 of Haryana State and areas developed by Haryana Urban Development Authority vide the Notification dated 23-12-1984;

63.  Rourkela including (i) the areas comprised in the Rourkela Municipality within the meaning of Orissa Municipal Act, 1950; and (ii) the areas comprised in the Rourkela Industrial Township as notified in Orissa Gazette dated 15th April, 1996 within the meaning of the Orissa Municipal Act, 1950;

64.  Sagar including the areas notified by the Government of Madhya Pradesh in Notification No. 202-32-1-85, dated 11-1-1985 and amendment of Madhya Pradesh Gazette Extraordinary No. 490, dated 1-9-1998;

65.  Saharanpur including the areas comprised in the Saharanpur Municipality;

66.  Sangli including the areas comprised in the Municipal Corporation of Sangli-Miraj & Kupwad within the meaning of the Bombay Provincial Municipal Corporation Act, 1949;

67.  Shahjahanpur including the area comprised in the municipal limits of Shahjahanpur city as defined in Notification No. 652/Eleven/24-B/1968, dated 25-5-1978 of Government of Uttar Pradesh;

68.  Shillong including the areas comprised within the Shillong Municipal Board;

69.  Siliguri including the areas comprised in the Municipal Corporation of Siliguri within the meaning of Siliguri Municipal Corporation Act, 1990;

70.  Thanjavur including the areas comprised in the Thanjavur Municipality within the meaning of the Tamilnadu District Municipalities Act, 1920;

71.  Tirunelveli including the areas comprised in the Tirunelveli Municipal Corporation within the meaning of the Tirunelveli City Municipal Corporation Act, 1994;

72.  Tiruppur including the areas comprised in the Tiruppur Municipality within the meaning of the Tamilnadu District Municipalities Act, 1920;

73.  Trissur (Trichur) including the areas comprised in the Trissur Municipality;

74.  Tuticorin including the areas comprised in the Tuticorin Municipality within the meaning of the Tamilnadu District Municipalities Act, 1920;

75.  Udaipur including the areas as notified in the Government of Rajasthan Notification No. F(1)(2)TP/63, dated 27th June, 1983 within the meaning of the Rajasthan Urban Improvement Act, 1959;

76.  Ujjain including the areas notified within the meaning of the Urban Land (Ceiling and Regulation) Act, 1976 and the areas comprised in the Ujjain Vikas Pradhikaran;

77.  Vellore including the areas comprised in the Vellore Municipality within the meaning of the Tamilnadu District Municipalities Act, 1920;

78.  Warangal including the areas comprised in the Municipal Corporation of Warangal;

79.  Yamunanagar including the areas comprised in the municipal limits of Yamunanagar within the meaning of the Municipal Act, 1973 of Haryana State and the areas developed by Haryana Urban Development Authority.

Notification : No. SO 373(E), dated 10-4-2000.

Notification 5

In exercise of the powers conferred by the first proviso to sub-section (1) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby specifies the immovable properties referred to below, as immovable properties for the purposes of clause (i) of the said proviso,—

  (a)  occupying the floor area of 2,000 sq. ft. or more in respect of immovable property used for residential (other than huts and kutcha dwellings) purposes; and

  (b)  occupying the floor area of 300 sq. ft. or more in respect of immovable property used for commercial purposes.

In all urban areas in the country [other than the urban areas specified in Notifications vide SO No. 468(E), dated 27th June, 1997, SO No. 669(E), dated 6th August, 1998, SO No. 242(E), dated 9th April, 1999, and SO No. 372(E), dated 10th April, 2000], defined by the 1991 Census of India as comprising :

  (a)  All places with municipality, corporation, cantonment board or any notified town area committee;

  (b)  All outgrowths of places referred to in (a) above;

  (c)  All other places which satisfy the following criteria :

   (i)  a minimum population of five thousand;

  (ii)  at least seventy-five per cent of male working population engaged in non-agricultural pursuits;

(iii)  a density of population of not less than four hundred persons per square kilometer.

Note : Urban areas will include “Towns and Urban Agglomerations, 1991” as listed in Table A-4 of the Second Part of Part IIA of Series I of the Census of India, 1991.

Notification : No. SO 409(E), dated 10-5-2001.

814. Widening of tax base vide Notification Nos. S.O. 409(E), dated 10-5-2001 and S.O. 410(E), dated 10-5-2001 [See 116 Taxman 101 (St.)]

Vide Notification S.O. No. 410(E), dated 10-5-2001, the One-by-six scheme has been extended to all urban areas in the country, the term “urban area” being defined by the 1991 Census of India. As per this notification urban areas will include ‘Towns and Urban Agglomerations 1991’ as listed in Table A-4 of the Second Part of Part II-A of Series-I of the Census of India, 1991. The said notification is general in nature and covers the entire country including the State of Jammu and Kashmir. However, since census of 1991 had not been conducted in the State of Jammu and Kashmir, there can be some doubt about the towns in that State, which are covered by the notification. On the basis of the Annexure to the above-mentioned Table A-4, which specifies the population of various towns in Jammu and Kashmir as in 1981, it is hereby clarified that the following towns and urban agglomerations of the State of Jammu and Kashmir are covered by the Notification No. S.O. 410(E), dated 10-5-2001 and the One-by-six scheme shall be applicable to these towns and urban agglomerations.

Name of the towns/urban agglomerations

1.

Anantnag 

19.

Rajauri

2.

Srinagar (UA)

20.

Kulgaon

3.

Srinagar

21.

Tral

4.

Jammu (UA)

22.

Samba

5.

Jammu

23.

Pulwama

6.

Baramula

24.

Arnia

7.

Sopore

25.

Kishtwar

8.

Kathua

26.

Cherari Sharif

9.

Udhampur

27.

Mattan

10.

Bari Brahmana

28.

Akhnoor

11.

Bandipore

29.

Handwara

12.

Punch

30.

Bhaderwah

13.

Pampore

31.

Rehambal

14.

Bijbehara

32.

Parole

15.

Ranbirsingh Pora

33.

Doda

16.

Shupiyan

34.

Pattan

17.

Ganderbal

35.

Badgami Bagh

18.

Leh

 

 

2. The floor areas applicable for these towns and urban agglomerations shall be the same as notified vide Notification No. S.O. 409(E), dated 10-5-2001.

Circular : No. 10/2001, dated 19-7-2001.

815. Notified persons for purposes of second proviso to section 139(1)

Notification 1

In exercise of the powers conferred by the second proviso to sub-section (1) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the following classes of persons to whom the provisions of the first proviso shall not apply, namely :—

  (a)  any person being a non-resident in regard to conditions specified in clause (i) to clause (vi) of the first proviso.

  (b)  any person being an individual who has attained 65 years of age but is not engaged in any business or profession during the previous year in regard to conditions specified in clause (i) or (iii) of the first proviso.

Notification : No. 710(E), dated 20-8-1998.

Notification 2

In exercise of the powers conferred by the second proviso to sub-section (1) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the following classes of persons to whom the provisions of the first proviso shall not apply, namely :—

  (a)  any person being a non-resident in regard to conditions specified in clauses (i) to (vi) of the first proviso;

  (b)  any person being an individual who has attained sixty-five years of age but is not engaged in any business or profession during the previous year in regard to conditions specified in clause (i) or clause (iii) of the first proviso.

Notification : No. SO 507(E), dated 11-6-2001.

816. Notified places of pilgrimage/Notified foreign countries for purposes of Explanation 3/4 to section 139(1)

Notification 1

In exercise of the powers conferred under Explanation 4  to sub-section (1) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby specifies the following places as the place of pilgrimage for the purposes of aforesaid sub-section and travel to such places shall not be regarded as travel to any foreign country for the purposes of sub-section (1) of section 139, namely :—

  (a)  travel to Saudi Arabia on Haj pilgrimage organised by Central Haj Committee, Mumbai constituted under the Haj Committee Act, 1959;

  (b)  travel to China on pilgrimage to Kailash Mansarover organised by Ministry of External Affairs, Government of India.

Notification : No. SO 711(E), dated 20-8-1998.

Notification 2

In exercise of the powers conferred by Explanation 3 to sub-section (1) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby specifies the following places as the places of pilgrimage and travel to such places shall not be regarded as travel to any foreign country for the purposes of the said sub-section, namely :—

  (a)  travel to Saudi Arabia on Haj pilgrimage organized by the Central Haj Committee, Mumbai constituted under the Haj Committee Act, 1959;

  (b)  travel to China on pilgrimage to Kailash Mansarover organized by the Ministry of External Affairs, Government of India.

Notification : No. SO 508(E), dated 11-6-2001.

Notification 3

In exercise of the powers conferred under Explanation 4  to sub-section (1) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby specifies that the expression “travel to any foreign country” used in this sub-section shall not include travel to following neighbouring countries, namely :—

  (a)  Bangladesh

  (b)  Bhutan

 (c) Maldives

 (d) Nepal

 (e) Pakistan

  (f)  Sri Lanka

Notification : No. SO 712(E), dated 21-8-1998.

Notification 4

In exercise of the powers conferred by Explanation 3 to sub-section (1) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby specifies that the expression “travel to any foreign country” in the said sub-section shall not include travel to the following neighbouring countries, namely :—

  (a)  Bangladesh;                     (d)  Nepal;

  (b)  Bhutan;                            (e)  Pakistan;

  (c)  Maldives;                          (f)  Sri Lanka.

Notification : No. SO 509(E), dated 11-6-2001.

817. Extension of time for filing return for assessment year 1967-68 up to August 15, 1967 in cases where returns are due to be filed by June 30, 1967

1. The forms of returns of income prescribed under the Rules were recently revised and these revised forms were notified in the Gazette of India, Extraordinary, dated 10-3-1967. There are now three forms of returns of income of which the first is for companies only; the second for co-operative societies and local authorities, and all other non-corporate assessees whose total income exceeds Rs. 15,000; and the third is for non-corporate assessees (other than co-operative societies and local authorities) whose total income is Rs. 15,000 or less. The returns for the current assessment year have to be furnished in the new forms.

2. Under the existing provisions of the law, the assessees have to file their returns of income for the current assessment year before June 30, 1967 or where they have business income, before the expiry of six months from the end of the relevant accounting year, whichever is later.

3. Representations have been received by the Board that the assessees are finding it difficult to file their returns before June 30, 1967 on account of the non-availability of the new return forms at the Income-tax Officers. Considering this difficulty, it has been decided to extend the time for filing the returns for the current assessment year up to August 15, 1967. This extension would be applicable in the cases of those assessees who are required under the law to file the returns under section 139(1) before August 15, 1967. A Press Note, dated 16-6-1967 announcing this decision has been issued for the general information of the taxpayers. A copy of the Press Note is enclosed [printed here as Annex] herewith for information and necessary action. The decision to extend the time for filing of returns up to August 15, 1967 may be brought to the notice of all the officers.

Letter : F. No. 28/18/67-IT (A-II), dated 17-6-1967.

ANNEX - PRESS NOTE REFERRED TO IN CLARIFICATION

With effect from the assessment year 1967-68, all assessees have to file their returns of income in the revised forms which have been notified in the Gazette of India, Extraordinary, dated 10-3-1967. Under the existing provisions of law, the assessees have to furnish their returns of income for the current assessment year before June 30, 1967, or where they have business income, before the expiry of six months from the relevant accounting year, whichever is later. In special cases, there time limits can be extended up to a prescribed maximum by the Income-tax Officer on an application being made to him in this regard.

As this is the first year in which the new forms have been introduced, it has been decided to allow extension of time to the assessees for filing of returns for the current assessment year up to August 15, 1967, without any application being made to the Income-tax Officer in this regard. This extension would be applicable to cases where voluntary returns of income have to be filed under section 139(1) for the assessment year 1967-68 before August 15, 1967.

818. Extension of time for filing return for assessment year 1972-73 in cases where returns are due to be filed by June 30, 1972 - Waive of interest chargeable for period of delay up to July 31, 1973

1. I am directed to inform you that the Board have decided to extend the time for furnishing voluntary returns of income and net wealth for the assessment year 1972-73 till July 31, 1972, in cases where such returns are due before that date. A copy of the Press Note dated 19-6-1972 [printed here as Annex] issued in this regard is attached.

2. Under the provisions of section 139, as amended by the Finance Act, 1972, interest at the rate of 12 per cent per annum is to be charged for delay in furnishing the return of income from the expiry of the due date up to the date of furnishing the return. Hence, interest at the rate of 12 per cent per annum will be chargeable from July 1, 1972 in cases where the voluntary return of income due by June 30, 1972 is not furnished by that date. As the time for furnishing the voluntary return of income has been extended till July 31, 1972, the Board desire that the Income-tax Officers may please be instructed to waive, in exercise of their powers under rule 117A(v) of the Income-tax Rules, the interest chargeable in respect of the period of delay up to the end of July 1972 in such cases. In terms of the proviso to the aforesaid rule, the previous approval of the Inspecting Assistant Commissioner will have to be obtained by the Income-tax Officer in cases where the amount of interest to be so waived exceeds one thousand rupees.

Circular : No. 88 [F/ No. 142(12)/72-TPL], dated 19-6-1972.

ANNEX - PRESS NOTE REFERRED TO IN CLARIFICATION

The Central Board of Direct Taxes will shortly be notifying new forms of returns of income and net wealth which will come into force from a date to be specified in this behalf in the notification. To enable taxpayers to furnish their returns of income and net wealth in the new and up-dated forms, the Board has decided to extend the time for furnishing voluntary returns of income and net wealth for the assessment year 1972-73 till July 31, 1972, in cases where such returns are due before that date.

1. The Board is also issuing instructions to the Income-tax Officers to waive in such cases, the interest chargeable under the Income-tax Act for belated submission of return in respect of the period of delay up to the end of July 1972.

2. Taxpayers who are required to, or wish to, submit their returns of income or net wealth before the new forms are brought into force may furnish the same in the forms currently in force.

819. Extension of time for filing return for assessment year 1973-74 in cases where returns due to be filed by June 30 or July 31, 1973 - Waiver of interest chargeable for period of delay up to August 15, 1973

1. The Central Board of Direct Taxes have decided to extend the time for furnishing returns of income and net wealth for the assessment year 1973-74 till August 15, 1973, in cases where returns are due to be filed by June 30, 1973 or July 31, 1973. A copy of the Press Note dated 20-6-1973 [printed here as Annex] in this regard is attached.

2. Under the provisions of section 139, as amended by the Finance Act, 1972, interest at the rate of 12 per cent per annum is to be charged for delay in furnishing the return of income from the expiry of the date up to the date of furnishing the return. Hence, interest at the rate of 12 per cent per annum will be chargeable from July 1, 1973 and August 1, 1973 in cases where the voluntary return of income due by June 30, 1973 or July 31, 1973, respectively, is not furnished by that date. As the time for furnishing the voluntary return of income has been extended till August 15, 1973, the Board desire that the Income-tax Officers may please be instructed to waive, in exercise of their powers under rule 117A(v) of the Income-tax Rules, the interest chargeable in respect of the period of delay up to August 15, 1973 in such cases. In terms of the proviso to the aforesaid rule, the previous approval of the Inspecting Assistant Commissioner will have to be obtained by the Income-tax Officer in cases where the amount of interest so waived exceeds Rs. 1,000.

Circular : No. 113 [F. No. 220/13/73-IT (A-II)], dated 20-6-1973.

ANNEX - PRESS NOTE REFERRED TO IN CLARIFICATION

The time for filing the returns of income and net wealth for the current assessment year 1973-74 has been extended until August 15, 1973, in cases where such returns are due to be filed by June 30 or July 31.

From April 1, this year, revised returns of income and net wealth have been brought into force. Taxpayers who have not furnished their returns for the assessment year 1973-74 or who have furnished such returns in the old forms are expected to submit them in the up-to-date forms. For revised forms or for any assistance, they should contract the Income-tax Officer or the Public Relations Officer.

In all cases of delay in furnishing the returns of income, Income-tax Officers are being issued instructions to waive the interest chargeable up to August 15.

Judicial Analysis

EXPLAINED IN - The above circular was explained in Hargovind Damji v. CIT  [2002] 123 Taxman 949 (Guj.) in following words :

“By issuance of Circular No. 113, dated 20-6-1973, the CBDT granted general extension for furnishing the returns of income and net wealth for assessment year 1973-74 till 15-8-1973. It cannot be said that the CBDT has issued the instruction to the income-tax authorities to make a particular assessment or to dispose of particular case in a particular manner. Even if we consider the alternative limb of Mr. Hemani’s argument that section 139 was inserted in section 119(2)(a) by the Finance Act, 1990 with effect from 1-4-1990, it cannot be said that prior to that date, there was any restriction on the exercise of powers by the CBDT under section 119 as sub-section (2) of section 119 starts with the words ‘without prejudice to the generality of the foregoing power’. It is also pertinent to note here that Circular No. 113, dated 20-6-1973 was issued by the CBDT with an intention to grant general extension to the assessees. The said circular was, therefore, benevolent in nature. It is for this reason, we hold that while exercising the powers conferred by section 119(1), the CBDT has issued the said circular granting general extension to the assessee and based on the said circular, the return filed on 14-8-1973 by the assessee was treated as the return filed under section 139(1) and since the said return was revised by the assessee on 22-3-1976 and the assessment was framed on the basis of that return, the said assessment cannot be held to be barred by limitation and it cannot be held as invalid or non est. We are, therefore, not inclined to accept the argument of Mr. Hemani, the learned advocate that Circular No.113 dated 20-6-1973 was issued only with a view to enable the income-tax authorities to waive the interest in case the return for the assessment year 1973-74 was filed after the due date, i.e., 30-6-1973. It is nowhere suggested in the said circular that the same was issued only for that purpose. The opening paragraph of the said circular is very clear. It says that the CBDT has decided to extend the time for furnishing returns of income and net wealth for the assessment year 1973-74 till 15-8-1973 in case where returns are due to be filed by 30-6-1973 or 31-7-1973. Thus, the said circular was issued practically for several purposes of the Act, which inter alia, includes the purpose of treating the return filed on or before 15-8-1973 but after its due date, as the return filed under section 139(1). The reference in the circular regarding rule 117A(v) of the Income-tax  Rules is only for the purpose of giving instructions to the ITOs to reduce or waive interest payable under section 139 by invoking the provisions contained in the said rule.” (p. 954)

 

820. Extension of due date for furnishing of returns by assessee claiming exemption under section 11 for assessment year 1991-92

See Sl. No. 747.

821. Extension of due date for furnishing of returns by assessee-company for assessment year 1991-92

See Sl. No. 748.

822. Extension of due dates for furnishing of return of income/loss and obtaining of Tax Audit Report by company assessees for assessment year 1992-93

See Sl. No. 749.

823. Extension of due date for furnishing of returns by working partners of firms for assessment year 1993-94

See Sl. No. 750.

824. Extension of due date for furnishing of tax audit reports by working partners of firms for the assessment year 1994-95

See Sl. No. 751.

825. Extension of due date for filing returns by assessee residing in Kashmir Valley who are assessed or assessable in Kashmir Valley

See Sl. No. 752.

826. Extension of due date in case of residents of Surat/Beed - Assessment year 1994-95

See Sl. No. 753.

827. Specified due date for purposes of Explanation under section 139(1) in respect of working partners as defined in Explanation 4 under section 40(b)(v) for assessment year 1995-96

See Sl. No. 754.

828. Specified due date under section 139(1), Explanation (b)(ii), extended to 31-10-1995 in relation to assessment year 1995-96

See Sl. No. 755.

829. Specified due date for purposes of Explanation under section 139(1) in respect of working partners as defined in Explanation 4 under section 40(b)(v) for assessment year 1996-97

See Sl. No. 756.

830. Specified due date for purposes of Explanation under section 139(1) in respect of working partners as defined in Explanation 4 under section 40(b)(v) for assessment year 1996-97

See Sl. No. 757.

831. Specified due date for purposes of Explanation 1 under section 139(1) in respect of assessees whose principal place of business is situated in the revenue districts of East Godavari, West Godavari, Prakasam and Nellore of the State of Andhra Pradesh for assessment year 1996-97 extended up to 31-12-1996

See Sl. No. 758.

832. Due date in respect of filing returns of income under proviso to section 139(1) for assessment year 1997-98

See Sl. No. 760.

833. Specified due date of filing returns of income under sub-clauses (ii) and (iii) of clause (b) of Explanation 1 of section 139(1)

See Sl. No. 761.

834. CBDT clarifies no extension of time for all returns and reports due to be submitted before October 31, 1997

See Sl. No. 759.

835. Due date in respect of filing returns of income under sub-clauses (ii) and (iii) of clause (b) of Explanation 1 under section 139(1) for assessment year 1998-99

See Sl. No. 762.

836. Extension of due date for filing returns of income for the assessment year 1998-99 in respect of non-corporate assessee

See also Sl. Nos. 763 to 766.

837. Specified due date in terms of sub-clauses (ii) and (iii) of clause (b) of Explanation 1 under sub-section (1) of section 139 as 31-10-1999 for assessment year 1999-2000 in case of assessees engaged in Kargil Operation

See Sl. No. 767.

838. Extension of date for filing income-tax return under proviso to section 139(1)

See Sl. No. 768.

839. Specified due date for filing return of income under Explanation 1(b)(ii) of section 139(1) for assessment year 1999-2000

See Sl. No. 769.

840. Specified due date of filing return of income under proviso to sub-section (1) of section 139 and sub-clause (i) of clause (b) of Explanation 1 of sub-section (1) of section 139 for assessment year 1999-2000

See Sl. No. 770.

841. Extension of date for filing income-tax return/tax audit report for assessment year 1999-2000

See Sl. No. 771.

842. Extension of due date in respect of persons filing return of income under proviso to section 139(1)

n For assessment year 2000-2001 See Sl. No. 773

n For assessment year 2001-2002 See Sl. No. 774

843. Extension of due date for resident of Orissa for assessment year 2001-2002

See Sl. No. 775.

843A. Scheme for bulk filing of returns by salaried employees, 2002

In exercise of the powers conferred by sub-section (1A) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby frames the following Scheme, namely :—

Short title, commencement and application.

1. (1) This Scheme may be called the Scheme for Bulk Filing of Returns by Salaried Employees, 2002.

(2) It shall come into force from the 1st day of July, 2002.

(3) It shall be applicable to all eligible employers and their eligible employees assessed to tax at Ahmedabad, Bangalore, Baroda, Bhopal, Chandigarh, Chennai, Delhi, Gandhinagar, Hyderabad, Jaipur, Jabalpur, Kolkata, Mumbai, Nagpur, Pune and Thane.

Definitions.

2. In this Scheme, unless the context otherwise requires,—

  (a)  “Act” means the Income-tax Act, 1961 (43 of 1961);

  (b)  “designated Assessing Officer” means an Assessing Officer as authorised by a Chief Commissioner or a Commissioner under this scheme;

 (c)   “Eligible Employer” means an employer who has a minimum of fifty employees with income exceeding maximum amount not chargeable to tax for the relevant financial year assessed at any specified city and who has been allotted tax deduction account number (TAN), and includes Drawing and Disbursing Officer (DDO) in the case of the Central Government or the Government of a State or Public Sector Company;

  (d)  “Eligible Employee” means an individual deriving income from salaries from an eligible employer or Drawing and Disbursing Officer (DDO) at any one of the specified cities to which the Scheme is applicable and has been allotted Permanent Account Number (PAN);

 (e) “Form” means a form appended to this Scheme;

 (f) “specified city” means any city referred to in sub-clause (3) to clause 1 of this Scheme;

 (g) all other words and expressions used herein but not defined and defined in the Act shall have the meanings respectively assigned to them in the Act.

Returns how to be furnished.

3. The Scheme is optional, and provides an additional mode of furnishing of returns of income by persons deriving income from salaries. Under the Scheme, an “eligible employee” may furnish his return of income for an assessment year which he is required to furnish under sub-section (1) of section 139 during any current financial year to his employer, who will transcribe the data of such returns on computer readable media using an authorised Bulk Return Preparation Software (BRPS), which will be made available by the Income-tax Department, and shall furnish these returns of income together with the data on specified computer readable media, called “Bulk return”, to the designated Assessing Officer by the due date for furnishing of the returns of income under that sub-section.

Types of returns to be received.

4. (1) The Scheme shall be applicable to employees whose total income does not include any income chargeable to income-tax under the head “Profits and gains of business or profession”.

(2) Following types of returns shall not be furnished under this Scheme—

   (i)  Return of income for any assessment year other than the assessment year for which he is required to furnish the return of income under sub-section (1) of section 139 during the current financial year;

  (ii)  Return of income where no PAN or incorrect PAN of the employee has been quoted;

(iii)  Return of income under section 158BC of the Income-tax Act and returns of any assessment year where the previous year falls within the block period;

(iv)  Return of an employee having more than one employer during the previous year for which the return is being furnished;

  (v)  Return of employee who is not in receipt of his salary from the “eligible employer” as on the last day of the previous year, for which the return is being furnished; and

(vi)  A revised return of income under sub-section (5) of section 139 of the Income-tax Act :

Provided that an employee having filed his return of income for a year under this Scheme, may furnish a revised return of income under sub-section (5) of section 139 of the Act before the Assessing Officer.

Steps for the “eligible employees”.

5. An “eligible employee” will have to take following steps for furnishing his return of income through his employer or DDO under the Scheme—

   (i)  give consent to the eligible employer in consent form as appended to this scheme for furnishing his return of income of an assessment year;

  (ii)  furnish a return of income in Form No. 2D or Form No. 3 duly signed and verified as prescribed under section 140 of the Act, together with the documents required to be enclosed with such return, and enclose a photo copy of the PAN Card or intimation letter received for allotment of PAN to ensure that his PAN has been correctly quoted in the return of income;

(iii)  in cases of claims of refund, either give consent in the consent form for the refund, to be delivered through such employer; or indicate the particulars of the bank account (i.e., name of bank, address of the branch and account number) in which such refund is to be directly credited by the Assessing Officer through Electronic Clearing Scheme of RBI, and enclose the mandate form. For this, the bank account in which the refund is to be credited should be in the same city where the return is being furnished; and

(iv)  the refunds arising on processing of returns furnished under this Scheme shall not be sent through any mode other than those described in sub-clause (iii) above.

Steps for the “eligible employer”.

6. (1) An “eligible employer” will receive the duly signed and verified returns of income from his “eligible employees” assessed to tax at any of the specified cities. The employer will transcribe correctly and completely the data contained in these returns of income using the Bulk Return Preparation Software (BRPS) to generate “Bulk return” on a specified computer readable media. In case eligible employees of an eligible employer are assessed at more than one specified cities, separate “Bulk returns” will have to be generated in respect of each specified city. The employer will furnish bulk return on a specified computer readable medium along with the corresponding returns of income in Form No. 2D or Form No. 3 before the designated Assessing Officer of the respective specified city.

(2) An eligible employer will take the following steps—

   (i)  an eligible employer will take consent from the eligible employees willing to furnish their returns of income under the Scheme along with mandate forms, where refund is to be transferred to the bank account of the employee;

  (ii)  receive the duly signed and verified returns of income in Form No. 2D or Form No. 3 of the “eligible employees” complete in all respects, together with the enclosures required to be furnished with these returns;

(iii)  ensure that PAN of the employees quoted in the returns of income are correct;

(iv)  verify that the TDS claim in respect of salary income is as per the certificates in Form No. 16 issued by the DDO;

  (v)  sort the returns according to the specified city where the concerned employees are assessed to tax;

(vi)  transcribe the data contained in these returns of income on computer readable media using the authorised Bulk Return Preparation Software (BRPS). The BRPS can be collected from the Income-tax Department;

(vii)  the specified computer readable medium for furnishing of Bulk return will be—

  (a)  CD ROM of 650 MB capacity;

  (b)  4mm 2GB/4GB (90m/120m) DAT Cartridge; or

  (c)  3.5" 1.44 MB floppy diskette;

(viii) ensure the correctness of the transcribed data on the “Bulk return(s)” vis-a-vis the returns of income submitted by the employees;

(ix)  generate separate forms of control charts (in duplicate) for the returns of income to be furnished at each specified city;

  (x)  generate separate “Bulk return” on any prescribed computer media using BRPS in respect of the “eligible employees” being assessed at each of the specified cities. In no case, Bulk return of more than one employer/DDO or relating to employees of more than one specified city of the same employers/DDO should be included on the same unit of computer readable media. Separate units of computer readable media should be used for returns pertaining to each specified city. Each unit of the computer readable medium used for a Bulk return should be serially numbered and affixed with labels indicating—

  (a)  Name and TAN of the employer;

  (b)  Name of the specified city;

  (c)  Assessment year;

  (d)  Serial number of the unit/total number of units of the computer readable medium used; and

  (e)  Number of employees whose returns of income are included in that unit;

(xi)  arrange the returns of income in Form No. 2D or Form No. 3 in the same sequence as in the “Bulk return” and give identical serial number both on the return of income and the “Bulk return”;

(xii)  placing a rubber stamp with words “furnished electronically” on all challans and vouchers for pre-paid taxes, e.g., Self-assessment tax, Advance tax, TDS, etc., enclosed with the return of income;

(xiii) furnish the “Bulk return” on the prescribed computer readable medium, along with the returns of income in Form No. 2D or Form No. 3 of the concerned employees, before the concerned designated Assessing Officer in the respective specified city by the due date for furnishing of returns of income under sub-section (1) of section 139 of the Act. It is for the “eligible employees” and the “eligible employer” to ensure that the Bulk return on virus-free and uncorrupted computer readable medium is furnished before the designated Assessing Officer on or before the due date as prescribed under that sub-section;

(xiv) only one Bulk return at one of the specified cities should be furnished for one assessment year;

(xv)  in case a Bulk return is furnished after the due date prescribed in sub-section (1) of section 139 of the Income-tax Act, all returns of income included in that Bulk return shall be treated as furnished on that date and the relevant provisions of the Income-tax Act for late furnishing of return of income shall apply accordingly;

(xvi) obtain an acknowledgement of the “Bulk return” furnished on the control chart as appended to this Scheme. Also obtain the acknowledgements for the returns of income so furnished from the receiving official;

(xvii)    keep a backup of the “Bulk return” till the receipt of acknowledgement thereof from the designated Assessing Officer. In case of unsuccessful retrieval of the data on the “Bulk return” originally furnished by him, the eligible employer shall have to furnish another copy of the same to the designated Assessing Officer;

(xviii)   distribution of the acknowledgements of the returns and intimations under sub-section (1) of section 143, and demand notices received from the designated Assessing Officer(s) to the concerned employees;

(xix) service of refund cheques of the respective employees received from the designated Assessing Officers, in cases where the employee has given consent in consent form for refund to be delivered through the employer;

(xx)  the service of refund cheques, demand notices and intimations under sub-section (1) of section 143 to the employer shall be deemed to have been served upon the eligible employees; and

(xxi) maintenance of necessary records relating to distribution of acknowledgements, intimations, and refund cheques to the concerned employees.

How to receive the returns under the Scheme.

7. (1) The “Bulk return” on the computer readable medium, together with the returns of income in Form No. 2D or Form No. 3 of the concerned employees and the consent forms/mandate forms, will be received at the designated counter.

(2) The receiving official will upload the data on computer from the submitted computer readable medium, with the help of BRPS to ensure that the data files can be retrieved, and that the medium is virus-free. He will generate the control chart using the computer readable medium, and check the number of returns of income vis-a-vis the returns included in the “Bulk return” on the computer readable medium. In case the media is not virus-free, or the data files are corrupted, the same will be returned to the employer for submission afresh. After these checks the receiving official will issue a signed receipt on one copy of the control chart, certifying the receipt of the returns mentioned therein. The date of issue of this signed receipt will be the date of furnishing of the returns.

(3) In case on verification at the receipt stage, it is found that the copies of the returns of income are more than the corresponding data on the Bulk return in computer readable medium, then the returns of income in Form No. 2D or Form No. 3 of the assessees whose data is not included in the Bulk return on computer readable medium, will be returned to the employer for being furnished separately before the concerned Assessing Officer. If it is found that the Bulk return on computer readable medium, contains data relating to more returns of income than the number of returns of income in Form No. 2D or Form No. 3 enclosed, then the Bulk return on computer readable medium will not be accepted and will be returned back to the employer along with all the returns of income at the receipt stage itself, for resubmission.

(4) The designated Assessing Officer will also issue individual acknowledgement for the returns of income in Form No. 2D or Form No. 3 of each employee. Such acknowledgements shall be given by an appointed date not later than 10 working days after the date of receipt of returns.

Processing of the return.

8. (1) The “Bulk return” will be processed on priority basis, but in the same manner as the other returns of income which are received in the normal course are processed.

(2) After processing of the “Bulk return”, employee-wise intimations under sub-section (1) of section 143 would be generated only in the cases where there is a demand or a refund.

(3) The refunds arising to those “eligible employees” who had given their consent for delivery of their refunds through the employer, would be prepared separately for service through the employer.

(4) The refunds arising to the remaining employees would be transferred by the designated Assessing Officer directly to their bank accounts, using the Electronic Clearing Scheme (ECS) of the RBI.

(5) A consolidated statement showing the result of the processing in respect of each return included in the Bulk return, the amount of resultant refund, the manner in which it is being issued (i.e., whether the refund cheque is being sent to the employer, or credited to the bank account of the employee), shall be sent by the designated Assessing Officer to the concerned employer, together with the intimation, and the refunds cheques mentioned at sub-clause (3) above, for distribution amongst the concerned employees.

Control Chart for Bulk Return

Assessment year

PART A : Particulars of eligible employer/DDO

1.

Name of the employer/DDO

 

 

Name and address of the DDO

Area/Locality Street City Pin Code

 

2.

Address of the employer/ DDO for correspondence

Area/Locality Street City Pin Code

 

3.

TAN number allotted to the employer/DDO

 

4.

Designation of Assessing Officer before whom Annual TDS return (Form No. 24) is filed

 

5.

Date of filing Form No. 24 for the F.Y.

 

6.

No. of employees for whom the Bulk return is being furnished

 

7.

Name of the specified city

 

8.

Type of computer readable medium used for Bulk Return

 

9.

No. of units of computer readable medium used

 

 

PART B : Particulars of eligible employees

S. No.

Name of employee

PAN of employee

Total income

Refund claimed

Refund to be sent to

1

2

3

4

5

6

 

 

 

 

 

 

 

 

 

Notes : 1. In Part B column 6 above, state D if the refund cheque is to be sent to the employer/DDO and state B for refund to be credited to the bank account of the employee.

2. The employee opting for credit to his bank account through the Electronic Clearance Scheme of RBI shall enclose the mandate form with his return of income in Form No. 2D or Form No. 3.

3. The returns of income in Form No. 2D or Form No. 3 should be in the same order as in Part B of the above chart, and are numbered with the same serial number as in the chart.

 

Place :

Date :                                                                   Name and signature of the

                                                                                      employer/DDO

(For use of Income-tax Office only)

 

Receipt

This is to certify that the receipt of Bulk return containing ................................. returns of income for the assessment year ............................ from................................................. (name of employer/DDO) today i.e., .................. (date) along with returns of income in Form No. 2D or Form No. 3 of .................... employees as per the list given in the control chart above.

 

Stamp and

Official Seal    Name and Signature of

            Receiving Official

 

Date :

 

Consent Form

I (.................................................................), son/daughter/wife/of  (.............................................), an employee of M/s.  (........................................), hereby authorise (...........................................), my employer/DDO, to furnish my return of income for the assessment year (...............) before the designated Assessing Officer under the scheme for Bulk Filing of Returns by Salaried Employees, 2002.

2. I also authorise my above employer/DDO to receive any intimation letter, challans, notice etc. in respect of above return from Income-tax Department on my behalf.

3. *I further authorise my employer/DDO to receive any refund voucher issued by the Income-tax Department in my name in connection with the above return.

OR

*The refund arising to me on the processing of the  above return may be transferred to my Bank Account through the Electronic Clearing Service (ECS) of the Reserve Bank of India for which separate mandate form is enclosed.

(*Delete whichever is not applicable.)

 

Place :                                                                                                                                     (                                                        )

 

Date :                                                                                                                                      Name and signature of the  assessee

 

 

Electronic Clearing Service
(Credit Clearing)
Mandate Form

Assessee’s Option to receive refunds through
Electronic Clearing System

   1.  Name of assessee                                 :

   2.  Permanent Account Number                 :

   3.  Particulars of Bank Account                  :

          (a)  Bank Name                                  :

          (b)  Branch name                                :

          (c)  9-Digit Code Number

                of the Bank and branch

                appearing on the MICR

                cheque issued by the Bank            :

          (d)  Account Type (Savings

                Bank Account/Current

                Account or Cash Credit)

                with code 10/11/13

          (e)  Ledger No./Ledger Folio No.       :

          (f)  Account Number                          :

   4.  Valid for assessment year                      :

 

I, (......................................................), son/daughter/wife/of (...............................................), hereby declare that the particulars given above are correct and complete and true to the best of my knowledge, belief and information.

 

Place :                                                                                                                                                                                                                     (......................................)

Date :                                                                                                                                                  Signature of the assessee

Notification No. : SO 661(E), dated 24-6-2002.

 

843B. Extension of date of filing returns u/s 139(1B)

In exercise of the powers conferred under clause (a) of sub-section (2) of section 119 of the Income-tax Act, 1961, the Central Board of Direct Taxes, hereby order that—

In the case of persons filing their returns of income for assessment year 2003-04 electronically under section 139(1B) of the Income-tax Act, 1961, the due date for filing of returns of income shall stand extended to 30th day of September, 2003.

Order : dated 30-5-2003.

 

843C. Clarification regarding filing of return of income by coffee growers, being individuals covered by rule 7B of the Income-tax Rules, 1962

1. The existing provisions of rule 7B of the Income-tax Rules, 1962 inserted by the Income-tax (Second Amendment) Rules, 2001, w.e.f. 1-4-2002 and further amended by the IT (Third Amendment) Rules, 2002 w.e.f. 1-4-2003, provide that income derived from the sale of coffee grown and cured by the seller shall be computed as if it were income derived from business and 25% of such income shall be deemed to be income liable to tax.

2. Under the existing provisions of section 139(1)(b) of the Income-tax Act, 1961, an individual is required to file return of income only if his total income is above the taxable limit, i.e., above Rs. 50,000, subject to first proviso to section 139(1) of the Income-tax Act, 1961.

3. In order to provide relief to the individual coffee growers and on representations received from them, the Board have considered the matter of filing return of income by the coffee growers. It is clarified that an individual deriving income from growing and curing coffee, with or without mixing chicory or other flavouring ingredients, and not covered by the first proviso to section 139(1) of the Income-tax Act, 1961, would not be obliged to file his return, if his income from growing and curing of coffee is Rs. 2 lakh or less as only 25% of such income is taxable as business income under rule 7B(1) of the Income-tax Rules, 1962. Where such individual, not covered by the first proviso to section 139(1), derives income from growing, curing, roasting and grounding, with or without mixing chicory or other flavouring ingredients and his income from such activity is Rs. 1,25,000 or less, he would not be obliged to file his return of income as only 40% of such income is taxable as business income under rule 7B(2) of the Income-tax Rules, 1962.

Circular : No. 10/2003, dated 24-12-2003.

843D. Exemption to pensioners from purview of one-by-six scheme under section 139(1)

In exercise of the powers conferred by the second proviso to sub-section (1) of section 139 of Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies that the provisions of the first proviso to sub-section (1) of section 139 shall not apply to the class of persons being individuals who have income from pension but are not engaged in any business or profession during the previous year.

Notification No. : SO 53(E), dated 12-1-2004.

843E. Date for filing return of income

The last date for filing of return within the meaning of Explanation 2(c) to section 139(1) of the Income-tax Act, 1961 had been extended from 31st July, 2004 to 31st October, 2004. The last date for filing of return in the case of corporate assessees, assessees whose accounts are required to be audited under section 44AB and assessees filing returns under first proviso to section 139(1), is 31st October, 2004. The 30th and 31st October, 2004 being holidays (Saturday and Sunday), the Income-tax authorities are hereby directed to make arrangements for accepting returns of income on 30th and 31st of October, 2004. This direction is issued for administrative convenience. Further, any returns filed on 1-11-2004 will be deemed to have been filed within due date in view of the Board’s Circular No. 639 dated 13-11-1992.

Source : Order F.No. 220/1/2004/IT(A-II), dated 20-10-2004

 

844. Defective return under section 139(9) - Effect of admission to enclose audited profit and loss account

Paragraph 5 of the said instructions reads as follows :

Section 139(9) envisages the issue of a deficiency letter if it is considered that a return of income is defective. The Explanation lists the defects. The first defect mentioned is that the enclosures, statements and columns in the return of income relating to computation of income chargeable under each head of income, computation of gross total income and total income have not been duly filled in. A return of income shall not be considered as defective under this clause merely because the inapplicable columns have not been filled up or against applicable columns the assessee has indicated that information as per statement is attached and the attached statement gives the relevant information. Again, clause (e) of the Explanation requires that where the accounts of the assessee have been audited, the return should be accompanied by copies of the audited profit and loss account balance-sheet and the auditor’s report. The omission to enclose copies of the audited profit and loss account, balance-sheet and the auditor’s report should be treated as a defect in all cases, requiring statutory audit. If the return indicates that the audit has not been completed and hence audited accounts and auditor’s report could not be enclosed, the return should not be treated as defective.

Instruction : Para 5 of Instruction No. 1348, dated 30-8-1980.

[Source :  H.P. State Forest Corpn. Ltd. v. Dy. CIT [1998] 231 ITR 556 (HP)].

Judicial analysis

Explained in - H.P. State Forest Corpn. Ltd. v. Dy. CIT [1998] 231 ITR 556 (HP) with the following observations :

“It is contended by learned counsel that as per the instructions given by the Board the non-compliance with the conditions mentioned in clauses (a) and (e) of the Explanation to section 139(9) would not invalidate the return. This contention cannot be accepted for two reasons. One, the Board’s instructions cannot prevail over the statute. When the Legislature has introduced a provision in the statute, it is not for the Board to instruct the officer not to comply with the requirement of the statute in the guise of giving instructions to them. The interpretation given by the Board to the provisions of the section does not appear to be correct and in any event the court is not bound by such interpretation. Secondly, the clauses mentioned in the Board’s instructions are only (a) and (e) to the Explanation to section 139(9). They do not refer to clauses (bb) and (d) of the said Explanation. In such circumstances, the Board’s instructions were not applicable in the present case.”

Explained in - Gopal Glass Works Pvt. Ltd. v. CIT [2001] 252 ITR 354/121 Taxman 124 (Guj.), in following words :

“It [Instruction No. 1348] pertains to only clauses (a) and (e) of the Explanation to sub-section (9) of section 139. It is as such not relatable or attributable to other clauses under Explanation to sub-section (9) of section 139. . . .

Clause (bb) and clause (d) under Explanation to sub-section (9) of section 139 are not covered by the said instructions.” (p. 363)

845. Validity of Returns of Income filed in old forms prescribed prior to 11-5-2000

1. In exercise of the powers conferred under section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes have made amendments to the Income-tax Rules, 1962, vide Notifications dated 11-5-2000, whereby certain changes have been effected in the Income Tax Return Form Nos. 2A, 2B, 2C, 2D(Saral), 3 and 3A as well as in Wealth tax and Expenditure tax return forms.

2. Since the new forms may not be widely available, certain assessees are filing returns of income in the forms as they existed before the aforesaid notifications dated 11-5-2000.

3. To remove genuine hardship in all such cases, Central Board of Direct Taxes hereby directs that returns of Income/Wealth/Expenditure filed during the current financial year, in the return forms, as they existed before notifications dated 11-5-2000, should not be treated as invalid merely because of the reason that the returns of Income/Wealth/Expenditure are not filed in the new notified forms.

4. To expedite allotment of PAN to all assessees, CCITs and DGITs should also give adequate publicity for assessees to take following steps while filing their returns of income:

   (i)  assessees who have been allotted PAN should quote the same at a proper place in the returns form;

  (ii)  assessees who have applied for PAN but have yet not received allotment should enclose copies of PAN application filed earlier, and its acknowledgement with the returns of income; and

(iii)  assessees who have not applied for PAN should enclose properly filled in PAN application form and 2 passport size photographs with the returns of income.

Circular: No. 792, dated 21-6-2000.

846. Removal of difficulties to Kisan Credit Cardholders by provisions of section 139(1)(v), first proviso

1. Under the existing provisions of clause (v) of the first proviso to sub-section (1) of section 139, a person not furnishing return under sub-section (1) and residing in specified areas and at any time during the previous year being the holder of a credit card, not being an add-on card, issued by any bank or institution, is required to furnish a return of his income during the previous year on or before the due date specified in the provision.

2. It has been represented to the Board that since agriculturists are not required to pay any tax on income arising from agricultural operations, the applicability of these provisions to the holders of Kisan Credit Card is likely to cause avoidable inconvenience to them.

3. The Board have considered the matter. It is hereby clarified that, unlike the normal credit card, the Kisan Credit Cards are issued based on the land holding of the agriculturists. The provisions explained in clause (v) of the first proviso to sub-section (1) of section 139 should, therefore, be made applicable to holders of credit cards other than Kisan Credit Cards.

Circular : No. 795, dated 1-9-2000.