IN Budget declared on 1 Feb 2018
Government has disallowed Deductions under Part C of Income Tax if Return not filed on time
| EARLIER | NOW |
|
Return filed on Time All Deductions Available |
Return filed on Time All Deductions Available |
|
Return filed late All Deductions Available except Section 80IA,80IB,80IC,80ID |
Return filed late
|
What are Part C Deductions in Income Tax?
View answer
Income Tax Part C- Deductions in respect of Certain Incomes
covers Sections like
| Section 80H | Deduction in case of new industrial undertakings employing displaced persons, etc. |
| Section 80HH | Deduction in respect of profits and gains from newly established industrial undertakings or hotel business in backward areas |
| Section 80HHA | Deduction in respect of profits and gains from newly established small-scale industrial undertakings in certain areas |
| Section 80HHB | Deduction in respect of profits and gains from projects outside India |
| Section 80HHBA | Deduction in respect of profits and gains from housing projects in certain cases |
| Section 80HHC | Deduction in respect of profits retained for export business |
| Section 80HHD | Deduction in respect of earnings in convertible foreign exchange |
| Section 80HHE | Deduction in respect of profits from export of computer software, etc. |
| Section 80HHF | Deduction in respect of profits and gains from export or transfer of film software, etc. |
| Section 80I | Deduction in respect of profits and gains from industrial undertakings after a certain date, etc. |
| Section 80IA | Deductions in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc. |
| Section 80IAB | Deductions in respect of profits and gains by an undertaking or enterprise engaged in development of Special Economic Zone |
| Section 80IAC | Special provision in respect of specified business. |
| Section 80IB | Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings |
| Section 80IBA | Deductions in respect of profits and gains from housing projects. |
| Section 80IC | Special provisions in respect of certain undertakings or enterprises in certain special category States |
| Section 80ID | Deduction in respect of profits and gains from business of hotels and convention centres in specified area |
| Section 80IE | Special provisions in respect of certain undertakings in North-Eastern States |
| Section 80J | Omitted |
| Section 80JJ | Omitted |
| Section 80JJA | Deduction in respect of profits and gains from business of collecting and processing of bio-degradable waste |
| Section 80JJAA | Deduction in respect of employment of new employees |
| Section 80K | Omitted |
| Section 80L | Omitted |
| Section 80LA | Deductions in respect of certain incomes of Offshore Banking Units and International Financial Services Centre |
| Section 80M | Omitted |
| Section 80MM | Omitted |
| Section 80N | Omitted |
| Section 80O | Deduction in respect of royalties, etc., from certain foreign enterprises |
| Section 80P | Deduction in respect of income of co-operative societies |
| Section 80Q | Deduction in respect of profits and gains from the business of publication of books |
| Section 80QQ | Omitted |
| Section 80QQA | Deduction in respect of professional income of authors of text books in Indian languages |
| Section 80QQB | Deduction in respect of royalty income, etc., of authors of certain books other than text-books |
| Section 80R | Deduction in respect of remuneration from certain foreign sources in the case of professors, teachers, etc. |
| Section 80RR | Deduction in respect of professional income from foreign sources in certain cases |
| Section 80RRA | Deduction in respect of remuneration received for services rendered outside India |
| Section 80RRB | Deduction in respect of royalty on patents |
| Section 80S | Omitted |
| Section 80T | Omitted |
| Section 80TT | Omitted |
Part C of Income Tax does not cover popular deductions like
- Section 80C-Max 150000 deduction on life insurance ,PPF,Housing loan repayment etc),
- 80D,(Medical Insurance Premium Deduction)
- 80G(Donations to PM Relief fund,_
- 80TTA (Savings bank interest deduction) etc
So even if return filed late,still Deduction Available under Popular sections like Section 80C,80D,80TTA
Earlier
Due Date of ITR is 31 July of next year (30 september for audit cases)
However,Return can be filed late till 31 March
EXAMPLE
For Financial year 2016-17(AY 2017-18
ITR Can be filed till 31 July 2017
However,in case of business,where audit is compulsory,due date is 30 September 2017
However,return can be filed late till 31 March 2018
If return filed late also,still deduction under Section 80C,80D can be claimed
Now For Financial year 2017-18(AY 2018-19)
ITR Can be filed till 31 July 2018
However,in case of business,where audit is compulsory,due date is 30 September 2018
However,return can be filed late till 31 March 2019
If return filed late deduction under Part C of Income Tax cannot be claimed
hence person has to pay more tax now compared to previous year if he fails to file ITR on time
However,he can still claim Section 80C,80D etc
Normally,Income tax Amendments are applicable from Next Assessment Year 2019-20However,this Return filed late amendment is applicable from Assessment Year 2018-19
Note
Standard Deduction will still be available even if return filed late as it is not covered in Chapter VIA
Legal Provision
Government has amended Sectiion 80AC of Income Tax
As per this section
any deduction admissible under section 80-IA or section 80-IAB or section 80-IB or section 80-IC or section 80-ID or section 80-IE, shall be allowed to him only if he furnishes a return of his income for such assessment year on or before the due date specified under sub-section (1) of section 139.
It is proposed to substitute the said section so as to provide that in computing the total income of an assessee of the previous year relevant to the assessment year commencing on or after the 1st day of April, 2018, deduction under any other provisions of Chapter VIA under the heading "C.—Deductions in respect of certain incomes” shall be allowed only if the return is filed within the due date specified under sub-section (1) of section 139.
This amendment will take effect from 1st April, 2018 and will, accordingly, apply to Assessment Year 2018-19