Deduction not to be allowed unless return furnished
Where in computing the total income of an assessee of any previous year relevant to the assessment year commencing on or after—
(i) the 1st day of April, 2006 but before the 1st day of April, 2018, any deduction is 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;
(ii) the 1st day of April, 2018, any deduction is admissible under any provision of this Chapter under the heading “C.—Deductions in respect of certain incomes“,
no such deduction shall be allowed to him unless 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.
A Comprehensive Guide to Section 80AC of the Income Tax Act, 1961
Navigating Deductions and Filing Deadlines with Clarity
Section 80AC of the Indian Income Tax Act, 1961, acts as a crucial link between tax deductions and timely filing of income tax returns. It emphasizes that to avail certain deductions, taxpayers must adhere to the prescribed due dates for filing returns. Understanding this section is essential for optimizing tax benefits and maintaining compliance.
Key Provisions of Section 80AC:
- Eligibility for Deductions:
- Taxpayers claiming deductions under various sections within Chapter VIA of the Income Tax Act, such as sections 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID, 80-IE, and others, are subject to this provision.
- Mandatory Return Filing:
- To claim these deductions, it’s mandatory to file the income tax return for the relevant assessment year on or before the due date specified under sub-section (1) of section 139.
- No Extension of Deadline:
- Even a slight delay in filing the return beyond the due date can lead to the denial of these deductions.
Illustrative Examples (Indian Context):
- Example 1:
- A manufacturing company invests in new plant and machinery, eligible for a deduction under section 80-IA. If the company fails to file its return by the due date, it forfeits the deduction, resulting in a higher tax liability.
- Example 2:
- An individual invests in an eligible start-up venture, seeking a deduction under section 80-IAC. Missing the return filing deadline would make them ineligible for the deduction, increasing their tax burden.
For more information the following government website can be referred:
1) Government Income Tax E-filing Wesbite
2) Government Income Tax Website
Disclaimer: This information is intended to provide general guidance and should not be considered as a substitute for professional tax advice. Please consult a qualified tax advisor for specific guidance relevant to your individual circumstances.
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