Rumors in Social Media regarding Section 80 C of Income Tax:- (Prem Shankar Mishra)
7 Feb 2018 3:35 PM GMT
Article deal with recent Rumors in Social Media that If Income Tax Return not filed within due date, the entire Chapter VI-A deductions will not be allowed which includes some of the Popular deduction i.e. Section 80C, Section 80D, etc. Some have even called it as hidden Bomb of Union Budget 2018. By this article I would like to clarify that Finance Budget 2018 has not made any changes in relation to claim of such deductions and whatever circulating in social media is a mere rumor and we should not fall for such rumors.
Such Rumors ignited from the Proposed amendment to Section 80AC of the Income Tax Act, 1961 so lets analyse the proposed amendment in Section 80AC and see if it impacts deduction U/S. 80C , 80D etc.
Budget 2018: Analysis of proposed amendment in Section 80AC of the Act
In the finance budget 2018 one important amendment has been took place in section 80 AC of the Act.
Existing Provision:
Provision contained in the Section 80AC of the Act provides that No deduction would be admissible under section 80-IA or 80-IAB or 80-IB or 80-IC or 80-ID or 80-IE, unless the return of income by assessee is furnished on or before the due date specified under section 139(1) of the Act.
Proposed amendment in Budget 2018
It is proposed to extend the scope of the section 80AC to provide that the benefit of deduction under the entire class of deductions under the heading "C- Deduction inrespect of certain incomes" In chapter VIA shall not be allowed unless the return of income is filed by the due date.
And 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.
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