CA SHREY RATHI RETURN OF INCOME 15.

NELSON MANDELA

CHAPTER 15
RETURN OF INCOME

"Do not judge me by my successes,

judge me by how many times I fell
down and got back up again”

THEORITICAL QUESTIONS
Q 1: Vineet submits his return of income on 12-09-2023 for A.Y. 2023-24 consisting of income under the head salaries,
“income from house property” and bank interest. On 21-12-2023, he realized that he had not claimed deduction under
section 80TTA in respect of his interest income on the savings Bank Account. He wants to revise his return on income. Can
he do so? Examine.
Would your answer be different if he discovered this omission on 21-03-2024? [ICAI Study Module]

Sol 1: Since Mr. Vineet has income only under the heads “Salaries”, “Income from house property” and “Income from
other sources”, he does not fall under the category of a person whose accounts are required to be audited under the
Income-tax Act, 1961 or any other law in force. Therefore, the due date of filing return for A/Y 2023-24 under section
139(1), in his case, is 31st July, 2023. Since Mr. Vineet had submitted his return only on 12.9.2022, the said return is a
belated return under section 139(4).
As per section 139(5), a return furnished under section 139(1) or a belated return u/s 139(4) can be revised. Thus, a
belated return under section 139(4) can also be revised. Therefore, Mr. Vineet can revise the return of income filed by him
under section 139(4) in December 2023, to claim deduction under section 80TTA, since the time limit for filing a revised
return is upto 31st December of the relevant assessment year, which is 31.12.2023.
However, he cannot revise return had he discovered this omission only on 21-03-2024, since it is beyond 31.12.2023,
being the last date of revising the return.

Q 2: State with reasons whether you agree or disagree with the following statements:
(a) Return of income of Limited Liability Partnership (LLP) could be verified by any partner.
(b) Time limit for filing return u/s 139(1) in the case of Mr. A having total turnover of ₹ 160 lakhs for the year ended
31.03.2023, whether or not opting to offer presumptive income u/s 44AD, is 31st October 2023.
(c) Where the Karta of HUF is absent from India, the return of income can be verified by any male member of the family.
[ICAI Study Module]
Sol 2:
(a) Disagree: The return of income of LLP should be verified by a designate partner. Any other partner can verify the
Return of Income of LLP only in the following cases:
(i) Where for any unavoidable reason such designated partner is not able to verify the return, or,
(ii) Where there is no designated partner.
CA SHREY RATHI RETURN OF INCOME 15.2

(b) Disagree: In case Mr. A opts to offer his income as per the presumptive taxation provisions of section 44AD, then, the
due date u/s 139(1) for filing of return of income for the year ended 31.03.2023, shall be 31st July, 2023.
In case Mr. A does not opt for presumptive taxation provisions under section 44AD and, has to get his accounts
audited under section 44AB, since his turnover exceeds ₹ 1 crore, the due date for filing return would be 31st October,
2023.

(c) Disagree: Section 140(b) provides that where the Karta of a HUF is absent from India, the return of income can be
verified by any other adult member of the family; such member can be a male or female member.

MULTIPLE CHOICE QUESTIONS

1. Where the Karta of Hindu undivided family is absent from India, the return of income can be verified by any male
member of the family.
(a) True
(b) False

2. Belated return can be filed by an assessee before the completion of assessment or before completion of
(a) Previous year (c) 31st December of the relevant assessment year
(b) Assessment year (d) 1 year from the end of the previous year

3. In case of a company, its income tax return can be signed by

(a) Managing director (c) Any manager
(b) any member (d) Chief executive officer

4. Due date of furnishing return of income for a working partner of a firm whose accounts are required to be audited is:
(a) 31st July of the assessment year (c) 30th November of the assessment year
th
(b) 30 September of the assessment year (d) 31st October of the assessment year

5. Mr. JP dies on 15/11/2022 and his total income till this date was ₹ 2,55,000. Thereafter the business of Mr. JP was
inherited by his son Mr. SP & his total income from such business was ₹ 2,88,000. The son does not have any other
income. In this case the son:
(a) has to file a consolidated income tax return for the amount of ₹ 5,43,000
(b) has to file separate income tax returns, one on behalf of his father for ₹ 2,55,000 & other in his own capacity for
₹ 2,88,000
(c) has to file only one income tax return on behalf of his father for ₹ 2,55,000
(d) has to file only one income tax return on behalf of his father for ₹ 5,43,000

6. As per section 139(1), a company shall have to file income tax return:
(a) When its total income does not exceed the maximum amount which is not chargeable to income-tax
(b) When its total income exceeds the maximum amount which is not chargeable to income-tax
(c) When it has suffered losses
(d) In all cases irrespective of any income or loss earned by it.

7. The last date of filing income tax return u/s 139(1) for PY 2022-2023 in case of non-corporate assesses whose
accounts are not liable to be audited shall be:
(a) 30th September of the previous year (c) 31st July of the assessment year
st
(b) 31 October of the assessment year (d) 31st July of the previous year

8. The filling of return of loss in case of a person other than a company or firm is:
(a) Mandatory
(b) Mandatory if the assessee has to carry forward the loss
(c) Not mandatory
(d) None of the above
CA SHREY RATHI RETURN OF INCOME 15.3

9. If there is a loss under the house property, it will be allowed to be carried forward. In this case, however the assessee:
(a) has to submit the return of loss before the due date mentioned under section 139(1)
(b) need not submit the return of income
(c) must submit the return of income but it can be a belated return
(d) none of the above

10. Belated return u/s 139(4) can be filed at any time:

(a) before the expiry of the relevant assessment year
(b) before the expiry of one year from the end of the relevant assessment year
(c) before the expiry of one year from the end of the relevant assessment year or before the assessment is complete,
whichever happens to be earlier
(d) before the expiry of relevant assessment year or before the assessment is complete, whichever happens to be
earlier

11. For the PY 2022-2023, assessee has suffered a business loss of ₹ 2,50,000. His income from house property is ₹
1,80,000. His due date of return was 31/7/2023 but he submitted ITR on 9/9/2023, the assessee in this case:
(a) Shall be allowed to carry forward the loss of ₹ 70,000
(b) Shall not allowed to carry forward any loss
(c) Shall be allowed to set off current year business loss to the extent of ₹ 1,80,000 but shall not be allowed to carry
forward the balance loss of ₹ 70,000
(d) None of the above

12. For the PY 2022-2023, the business loss of the assessee was ₹ 1,00,000 and the current year depreciation was ₹
1,40,000. The assessee furnished the income tax return on 15/12/2023 although the due date was 31/10/2022. In this
the assessee shall:
(a) be allowed to carry forward business loss of ₹ 1,00,000 and unabsorbed depreciation of ₹ 1,40,000.
(b) neither be allowed to carry forward business loss nor the unabsorbed depreciation
(c) not be allowed to carry forward business loss but shall be allowed to carry forward unabsorbed depreciation
(d) be allowed to carry forward business loss but shall not be allowed to carry forward unabsorbed depreciation

13. LP Ltd. submitted the income tax return for the PY 2022-23 on 5/12/2023 finds some mistake in the return submitted
by it. In this case LP Ltd. can revise the income tax return till
(a) 31/3/2023 (c) 31/12/2023
(b) 31/3/2024 (d) cannot revise the ITR

14. The assesses filed his return of income in requisite form without making the payment of tax. The ITR so filed is
(a) valid (c) defective
(b) not valid (d) None of the above

15. For AY 2020-2021, Mr. KJ incurred a loss of ₹ 40,000 under the head PGBP and filed return of loss within due date. He
again incurred loss of ₹ 50,000 during AY 2021-2022 but for this year he did not file return. In AY 2023-2024 i.e. PY
2022-2023 he earned income of ₹ 5,00,000. How much loss can Mr. KJ carry forward and set off in this year?
(a) ₹ 90,000 (c) ₹ 40,000
(b) ₹ 50,000 (d) Nil

16. Mr. PJ has total income of ₹ 14,90,000 for the P/Y 2022-2023. If a return is filed after the due date u/s 139(1) but
before 31/12/2023 then the late fees of ..................... shall be imposed under section 234F
(a) ₹ 2,000 (c) ₹ 5,000
(b) ₹ 10,000 (d) ₹ 1,000

17. Revised return substitutes ..................... and shall be deemed to be have been filed on the date on which original
return was filed
(a) Original return (c) Original return or revised return filed earlier
(b) Revised return filed earlier (d) None of the above
CA SHREY RATHI RETURN OF INCOME 15.4

18. If the AO considers that return is defective, he may intimate the defect to the assessee and give him .....................
(a) Opportunity to rectify the defect within 20 days
(b) Opportunity to rectify the defect within 15 days
(c) No opportunity shall be given
(d) Opportunity to rectify the defect within 30 days

19. During the PY 2022-2023, Mr. DJ has income under the head house property ₹ 107 Lakhs. In this case, his last date of
filing of return shall be .....................
(a) 31st July, 2023 (c) 30th September, 2023
st
(b) 31 July 2023 (d) 31st October, 2023

20. For filing returns of income in respect of various entities, Income-tax Act, 1961 has prescribed
(a) Two due dates (c) Four due dates
(b) Three due dates (d) Only one due date

21. One is required to obtain PAN if total sales turnover or gross receipts are or is likely to exceed ..................... in any
previous year?
(a) ₹ 5,00,000 (c) ₹ 10,00,000
(b) ₹ 1,00,000 (d) None of the above

22. Mr. Z, a salaried individual has a total income of ₹ 8 lakhs for AY 2023-24. He files his return of income for PY 2022-23
on 28th August, 2023. He is liable to pay late fee of (ICAI MCQ Booklet)
(a) ₹ 1,000 under section 234F (c) ₹ 10,000 under section 234F
(b) ₹ 5,000 under section 234F (d) Not liable to pay any fee

23. Quoting of Aadhar number is mandatorily required in filing of application for allotment of PAN from
(a) 1st April 2018 (c) 1st October 2017
st
(b) 1 December 2017 (d) 1st July 2017

24. The provisions relating to Tax Return Preparer have been discusses under
(a) Section 139A (c) Section 139B
(b) Section 139C (d) Section 139D

25. Mr. Kumar having income from house property only filed his return of income on 22nd November 2023. His tax
liability of ₹ 35,000 was paid a week before filing of return. Compute interest, if any u/s 234A.
(a) ₹ 1,400 (c) ₹ 700
(b) Nil (d) ₹ 1,225

26. Which of the following persons have been exempted to quote their Aadhar number in filing of application form for
allotment of PAN?
(a) Non-resident of India (c) Foreign citizen
(b) Person of the age of 80 years or more (d) All of the above

27. Permanent Account Number is a ………………. alphanumeric number.

(a) 8 digits (c) 9 digits
(b) 10 digits (d) 11 digits

28. Quotation of PAN is mandatory in case of payment in cash in connection with foreign travel or purchase of any foreign
currency where such payment exceeds
(a) ₹ 50,000 (c) ₹ 1,00,000
(b) ₹ 2,00,000 (d) ₹ 2,50,000
CA SHREY RATHI RETURN OF INCOME 15.5

29. Which of the following persons are not eligible to act as Tax Return Preparer?
(a) Any officer of a scheduled bank with which the assessee maintain a current account
(b) Any legal practitioner who is entitled to practice in any civil court in India
(c) A Chartered Accountant
(d) All of the above

30. Where the amount paid by the assessee is less than the aggregate of tax, interest & fees, then the amount so paid
shall first be adjusted against
(a) Penalty/Fees (c) Interest
(b) Income Tax (d) None of the above

31. Mr. X is a working partner and Mr. Y is a non-working partner of XYZ partnership firm. XYZ Partnership firm subjected
to tax audit under section 44AB for the P.Y. 2022-23. What is the due date for filing return of income for Mr. X and Mr.
Y for the A.Y. 2023-24? (ICAI MCQ Booklet)
(a) 31st July, 2023 for both Mr. X and Mr. Y
(b) 31st October, 2023 for both Mr. X and Mr. Y
(c) 31st July, 2023 for Mr. X and 31st October, 2023 for Mr. Y
(d) 31st July, 2023 for Mr. Y and 31st October, 2023 for Mr. X

32. An individual client has consulted you on the matter of PAN. He is carrying on the business of sale & purchase of
electronic appliances. His turnover is ₹ 3,00,000 and profit is ₹ 75,000 for the P.Y. 2022-23. He has asked you to
provide him threshold of turnover, if any, exceeding which he has to apply for PAN. (ICAI MCQ Booklet)
(a) More than ₹ 2,00,000 (c) More than ₹ 3,00,000
(b) More than ₹ 2,50,000 (d) More than ₹ 5,00,000

33. Arun’s gross total income of P.Y. 2022-23 is ₹ 45,000. He deposits ₹ 45,000 in PPF. He pays electricity bills aggregating
to ₹ 1.20 lakhs in the P.Y. 2022-23. Which of the statement is correct? (ICAI MCQ Booklet)
(a) Arun is not required to file his return of income u/s 139(1) for P.Y. 2022-23, since his total income before giving
effect to deduction under section 80C does not exceed the basic exemption limit.
(b) Arun is not required to file his return of income u/s 139(1) for P.Y. 2022-23, since his electricity bills do not exceed
₹ 2,00,000 for the P.Y. 2022-23.
(c) Arun is not required to file his return of income u/s 139(1) for P.Y. 2022-23, since neither his total income before
giving effect to deduction under section 80C exceeds the basic exemption limit nor his electricity bills exceed ₹ 2
lakh for the P.Y. 2022-23.
(d) Arun is required to file his return of income u/s 139(1) for P.Y. 2022-23, since his electricity bills exceed ₹ 1 lakh
for the P.Y. 2022-23.

34. Iskon Inc., a foreign company and non-resident in India for A.Y. 2023-24, engaged in the business of trading of tube-
lights outside India. The principal officer of the company has approached you to enlighten him regarding the
provisions of the Income-tax Act, 1961 pertaining to the person who is required to verify the return of income in case
of Iskon Inc. Advicehim as to which of the following statements are correct, assuming that the company has a
managing director- (ICAI MCQ Booklet)
I. The return of income in case of Iskon Inc. can be verified by the managing director.
II. The return of income in case of Iskon Inc. can be verified by any director, irrespective of the availability or
otherwise of the managing director.
III. The return of income in case of Iskon Inc. can be verified by a person who holds a valid power of attorney from
such company to do so, irrespective of the availability or otherwise of the managing director.
Choose the correct answer:
(a) I or II or III (c) I or III
(b) Only I (d) Only III
CA SHREY RATHI RETURN OF INCOME 15.6

35. Which of the following returns can be revised under section 139(5)? (ICAI MCQ Booklet)
(i) A return of income filed u/s 139(1)
(ii) A belated return of income filed u/s 139(4)
(iii) A return of loss filed u/s 139(3)
Choose the correct answer:
(a) Only (i) (c) Only (i) and (iii)
(b) Only (i) and (ii) (d) (i), (ii) and (iii)

36. Mr. Dinesh, a resident in India, has gross total income of ₹ 2,30,000 comprising of interest on saving A/c and rental
income during the previous year 2022-23. He incurred expenditure of ₹ 2,00,000 for his son for study tour to Europe.
Whether he is required to file return of income for the assessment year 2023-24? If yes, what is the due date? (ICAI
MCQ Booklet)
(a) Yes, 31st July of A.Y. (c) Yes, 31st October of A.Y.
th
(b) Yes, 30 September of A.Y. (d) No, he is not required to file return of income

37. During the A. Y. 2023-24, Mr. Kabir has a loss of ₹ 6 lakhs under the head “Income from house property”, loss of ₹ 5
lakhs from business of profession and income of ₹ 3 lakhs from long term capital gains. He filed his return of income
for the A.Y. 2023-24 on 31-12-2023. Determine the total income of Mr. Kabir for A.Y. 2023-24 and the amount of loss
which can be carried forward in a manner most beneficial to him? (ICAI MCQ Booklet)
(a) Total income Nil; loss of ₹ 4,00,000 from house property and loss of ₹ 4,00,000 from business or profession
(b) Total income ₹ 1,00,000; loss of ₹ 4,00,000 from house property
(c) Total income Nil; No loss is allowed to be carried forward.
(d) Total income Nil; loss of ₹ 6,00,000 from house property.

38. Mr. Kumar, aged 62 years resident ad ordinarily resident, is a retired employee with a monthly pension of ₹ 15,000.
He has no other source of income. He has house property in Bhatinda and his only son is living in London and has a
house over there. He met with an accident and died and thereby leaving the house at London in the name of his
father, Mr. Kumar. Mr. Kumar seeks your advice, as to whether he is required to file his income-tax return u/s 139?
(ICAI MCQ Booklet)
(a) Yes, he is mandatorily required to file his income-tax return as he is a resident and ordinarily resident in India
and has asset located outside India
(b) No, he is not required to file return of his income as his income is below basic exemption limit.
(c) Yes, he is required to file his return of income as his income exceeds basic exemption limit
(d) No, he is not required to file his return of income as he is a senior citizen and retired employee

39. Mr. Alexa is a resident but not ordinarily resident in India for P.Y. 2022-23. He is doing job in M/s Kothari Chemicals as
Accountant & earns ₹ 25,000 per month. He had no other income in India but having a vacant land in Canada which he
had got from his father after his demise. He had no income from Canada also. Mr. Alexa come to you for consulting
whether he is required to file his return of income for A.Y. 2023-24? (ICAI MCQ Booklet)
(a) Alex is not required to file his return of income as his total income does not exceed the basic exemption limit.
(b) Alex is required to file his return of income as his total income as he is beneficiary of the assets located outside
India.
(c) Alex is not required to file his return of income as his total income does not exceed the basic exemption limit
and is resident but not ordinarily resident during the P.Y. 2022-23.
(d) Alex is not required to file his return of income as his total income exceeds the basic exemption limit.

MCQ Answers
1. (b) 2. (b) 3. (a) 4. (d) 5. (b) 6. (d) 7. (c) 8. (c) 9. (c) 10. (d)
11. (c) 12. (c) 13. (c) 14. (b) 15. (c) 16. (c) 17. (c) 18. (b) 19. (a) 20. (b)
21. (a) 22. (b) 23. (d) 24. (c) 25. (a) 26. (d) 27. (b) 28. (a) 29. (d) 30. (a)
31. (b) 32. (d) 33. (d) 34. (c) 35. (d) 36. (d) 37. (d) 38. (a) 39. (c)