Interpretation\nof section 80AC of the Income Tax Act, 1961 (the Act) has its various phases\nbut a section defined in a law cannot have two separate meanings.<\/p>\n\n\n\n
Today we are\ngoing to learn about true interpretation of Section 80AC of the Act from\nconversation of Madhav and Vidya.<\/p>\n\n\n\n
Madhav:<\/strong> Vidya, today I was solving an income tax notice of\na co-operative housing society, in which I found out that they have claimed deduction\nu\/s 80P, the issues mentioned in the notice are solved and I am about to revise\nthe income tax return.<\/p>\n\n\n\n Vidya:<\/strong> Then what is the issue?<\/p>\n\n\n\n Madhav:<\/strong> Don\u2019t be so casual Vidya, if I revise the return I\nwon\u2019t be able to claim deduction u\/s 80P as per the provisions of section 80AC.\nAnd the deduction amount is pretty huge.<\/p>\n\n\n\n Vidya:<\/strong> Madhav, I think you have not read the section\ncarefully. Let us see what the section actually says, <\/p>\n\n\n\n As per Section 80AC of the Act, \u201cWhere\nin computing the total income of an assessee of any previous year relevant to\nthe assessment year commencing on or after\u2014<\/em><\/p>\n\n\n\n (i) the 1st day of April, 2006 but\nbefore the 1st day of April, 2018, any deduction is admissible under section\n80-IA or section 80-IAB or section 80-IB or section 80-IC or section 80-ID or\nsection 80-IE;<\/em><\/p>\n\n\n\n (ii) the 1st day of April, 2018, any\ndeduction is admissible under any provision of this Chapter under the heading\n“C.\u2014Deductions in respect of certain incomes”,<\/em><\/p>\n\n\n\n no such deduction shall be allowed to\nhim unless he furnishes a return of his income for such assessment year on or\nbefore the due date specified under subsection(1) of section 139.\u201d<\/em><\/p>\n\n\n\n As you can\nsee Madhav, this section previously talked about specific 6 deductions till the\nGovernment introduced clause (ii) with an objective of bringing uniformity in\nall income-based deductions, in which it is proposed that the scope of section\n80AC should be extended to all similar deductions which are covered under the\nheading \u201cC\u2014Deductions in respect of certain incomes\u201d under Chapter VIA i.e from\nSections 80HH to 80RRB.<\/p>\n\n\n\n And it says\nthat deduction shall be allowed only if Original Return is filed on or before\nthe due date specified u\/s 139(1). To explain further, you can claim deductions\nby furnishing an income tax return on or before the due dates specified under\nsections other than section 139(1), i.e. 139(4), 139(5), provided that you have\nfurnished original return on or before the due date specified u\/s 139(1).<\/p>\n\n\n\n Madhav:<\/strong> Oh! I was totally unaware about this fact. But how\ncan you be so sure?<\/p>\n\n\n\n Vidya:<\/strong> Madhav, <\/p>\n\n\n\n 1. As\nper the decision in ACIT Vs. Precot Meridian Limited ITA 1214\/Mds\/2012 (Chennai\nTribunal), it was observed that the section does not speak of a claim to be\nmade in the return filed under section 139(1). The section speaks of filing a\nreturn within the time specified under section 139(1) and nothing else.<\/em><\/p>\n\n\n\n 2. Further\nas per the decision in Parmeshwar Cold Storage (P) Limited Vs. ASCIT (2011) 16\ncom88(Ahd.), it was also observed that, Section 80AC does not require that the\nclaim under section 80-IB should be made only through the original return in\ntime. It only prescribes the condition that the original return filed should be\nin time for enabling the assessee to make a claim. In other words, it is not a\nrequirement to make the claim in the original return itself, which is to be\nfiled within the time. It was further explained that for claiming deduction\nunder section 80-IB, the only condition is that the original return should be\nfiled in time, but the claim need not necessarily be made in the original\nreturn, it can be made subsequent thereto also.<\/em><\/p>\n\n\n\n Madhav:<\/strong> That means, in my case I wouldn\u2019t have to worry\nabout losing the deduction claimed by the Co-operative society in its income\ntax return file within the due dates specified u\/s 139(1).<\/p>\n\n\n\n Vidya:<\/strong> You got it absolutely right Madhav!<\/p>\n\n\n\n Madhav:<\/strong> Thank you, Vidya. It is quite an interesting\nsection.<\/p>\n\n\n\n Vidya:<\/strong> Since you’ve understood the concept, can you\nconclude so that our readers can understand?<\/p>\n\n\n\n Madhav:<\/strong> Yes, why not?<\/p>\n\n\n\n Conclusion –<\/strong><\/p>\n\n\n\n 1. If\nOriginal Income Tax Return is not furnished on or before the due dates\nspecified u\/s 139(1), you cannot claim deductions specified in Part C of\nChapter VI-A.<\/p>\n\n\n\n 2. If\nOriginal Income Tax Return is furnished on or before the due dates specified\nu\/s 139(1), you can claim deductions specified in Part C of Chapter VI-A on or\nbefore the due dates specified in the section 139.<\/p>\n\n\n\n 3. If\noriginal return is filed within due dates prescribed under section 139(1), and\ndeductions are not claimed in that original return and return needs to be\nrevised, then return can be revised and deductions can be claimed.<\/p>\n","protected":false},"excerpt":{"rendered":" Interpretation of section 80AC of the Income Tax Act, 1961 (the Act) has its various phases but a section defined in a law cannot have two separate meanings. Today we are going to learn about true interpretation of Section 80AC of the Act from conversation of Madhav and Vidya. Madhav: Vidya, today I was solving […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"rttpg_featured_image_url":null,"rttpg_author":{"display_name":"User Collaborator","author_link":"https:\/\/dahotreca.com\/?author=3"},"rttpg_comment":0,"rttpg_category":"Direct Taxation<\/a>","rttpg_excerpt":"Interpretation of section 80AC of the Income Tax Act, 1961 (the Act) has its various phases but a section defined in a law cannot have two separate meanings. Today we are going to learn about true interpretation of Section 80AC of the Act from conversation of Madhav and Vidya. Madhav: Vidya, today I was solving…","_links":{"self":[{"href":"https:\/\/dahotreca.com\/index.php?rest_route=\/wp\/v2\/posts\/2157"}],"collection":[{"href":"https:\/\/dahotreca.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dahotreca.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dahotreca.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/dahotreca.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2157"}],"version-history":[{"count":1,"href":"https:\/\/dahotreca.com\/index.php?rest_route=\/wp\/v2\/posts\/2157\/revisions"}],"predecessor-version":[{"id":2158,"href":"https:\/\/dahotreca.com\/index.php?rest_route=\/wp\/v2\/posts\/2157\/revisions\/2158"}],"wp:attachment":[{"href":"https:\/\/dahotreca.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dahotreca.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dahotreca.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}