Deductions in respect of certain incomes not to be allowed unless return is filed by the due date

The existing provisions contained in the section 80AC of the Act provide that no deduction would be 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, unless the return of income by the assessee is furnished on or before the due date specified under sub-section (1) of section 139 of the Act. This burden is not cast upon assesses claiming deductions under several other similar provisions.

In view of the above, it is proposed to extend the scope of section 80AC to provide that the benefit of deduction under the entire class of deductions under the heading “C.-Deductions in respect of certain incomes” in Chapter VIA shall not be allowed unless the return of income is filed by the due date.

This amendment will take effect, from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-19 and subsequent assessment years.

[Clause 23]

Timely filing requirement for Chapter VIA deductions: claims barred unless the income tax return is filed by the due date. The proposal makes timely filing of the return of income a universal eligibility condition for all deductions under the heading 'C. - Deductions in respect of certain incomes' in Chapter VIA, so that such deductions will not be admissible unless the return is filed by the due date prescribed under the tax law.