Returns of income below taxable limit-Whether such returns are to be accepted at the Receipt Counters - Income Tax - 493/1987

Returns of income below taxable limit-Whether such returns are to be accepted at the Receipt Counters Circular No. 493 Dated 21/8/1987 To All Chief Commissioners and Commissioners of Income-tax. Sir, Subject: Returns of income below taxable limit-Whether such returns are to be accepted at the Receipt Counters. Attention is invited to Instruction No. 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 of the Income-tax Act. 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 "not 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 unformity 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 instance, columns (iii), (iv), (v) (vi) of 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 excempted 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 excemptions 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 Receipt Counters. Therefore, returns which are not valied should not be accepted at the Receipt Counters. You may kindly issue necessary instructions to the officers and staff working under the exceptions contained in the proviso to section 139(10) are not to be received at the counter. While publicity should be given to these instructions. 6. Hindi version will follow shortly. Yours faithfully, (Y.K. Batra) Under Secretary to the Government of India.