CA Intermediate · Taxation

Provisions for filing Return of Income and Self Assessment: formula sheet

Full chapter guide

Key formulas

Company and firm rule: Company or firm (incl. LLP, treated as a firm) → return compulsory every tax year, whatever the income or loss, subject to any specific exceptions in the Act; No income threshold applies. A loss-making or inactive entity must still file.
Income-limit rule: Income before specified exemptions and deductions > basic exemption limit → return compulsory; Applies to any person other than a company or firm, such as individuals, HUFs, AOPs and BOIs. Add back only the capital gains exemptions, the exemptions for specified units (such as SEZ units and export-oriented undertakings) and the deductions from gross total income. Do not add back other reliefs, such as the standard deduction.
Foreign asset rule: Resident and ordinarily resident + (foreign asset / financial interest / signing authority in foreign account) → return compulsory; Applies even if income is nil. Not applicable to a non-resident or a resident but not ordinarily resident (RNOR).
Specified high-value triggers (person not otherwise required to file): Aggregate current account deposits > ₹1,00,00,000 | foreign travel spend > ₹2,00,000 | electricity spend > ₹1,00,000; These are 'exceeds' tests, so an amount exactly equal to the limit does not trigger filing. Amounts are aggregates for the tax year being tested. Current account deposits are the total across one or more current accounts. Foreign travel spend is the expenditure you incur on travel to a foreign country for yourself or any other person.
Other specified triggers (person not otherwise required to file): Business turnover/sales/gross receipts > ₹60,00,000 | professional gross receipts > ₹10,00,000 | TDS + TCS deducted or collected on the person's income or receipts ≥ ₹25,000 (≥ ₹50,000 for a resident individual who is of the age of 60 years or more at any time during the tax year) | aggregate deposits in one or more savings bank accounts > ₹50,00,000; All are tested on the amounts for the tax year. Turnover, professional receipts and savings deposits are 'exceeds' tests. The TDS/TCS test is 'at least': ₹25,000 or more, or ₹50,000 or more for a resident individual who is of the age of 60 years or more at any time during the tax year. The higher limit applies only to such a resident individual, not to a non-resident senior citizen. A person who turns 60 during the tax year qualifies.
Due date: non-audit assessees: 31 July following the end of the tax year (31 July 2027 for tax year 2026-27); Applies to individuals, HUFs and others not covered by the later dates. Check the latest ICAI material for any Finance Act, 2026 change for specific non-audit business cases.
Due date: audit cases: 31 October following the end of the tax year (31 October 2027); This date applies to a company, and to any other person (including a working partner of a firm) whose accounts are required to be audited under the Income-tax Act or any other law.
Due date: transfer pricing cases: 30 November following the end of the tax year (30 November 2027); Applies to the assessee who is required to furnish the report on international or specified domestic transactions, and to a partner (or working partner) of a firm that is subject to such a report.
Belated return: A return filed after the due date, within the time limit allowed by the Act; The last date for a belated return was changed in recent amendments, so confirm the exact time limit under the Income-tax Act, 2025 as amended by the Finance Act, 2026 in your ICAI study material. Once that limit passes, a belated return cannot be filed. Fee and interest for late filing apply. Study the related topic on fee and interest for default.
Revised return: Replaces an original or belated return that has an omission or wrong statement; The time limit for a revised return, and any fee, should be taken from the Income-tax Act, 2025 as amended by the Finance Act, 2026 in your ICAI study material. Confirm both there before the exam.
Updated return: time limit: Within 48 months from the end of the relevant tax year; Only to declare additional income and pay more tax.
Updated return: additional tax: 25% (within 12 months), 50% (12 to 24 months), 60% (24 to 36 months), 70% (36 to 48 months) of the tax plus interest payable on the updated return, after credit for advance tax, TDS/TCS and self-assessment tax already paid; Months are counted from the end of the tax year. The rate rises with each block. First find tax plus interest as per the updated return, then deduct prepaid taxes. Apply the percentage to that net figure. The total payable with the updated return is that net figure plus the additional tax.
Fee for late filing of return: ₹5,000 if filed after the due date but on or before 31 December after the tax year; ₹10,000 if filed later; ₹1,000 if total income ≤ ₹5,00,000; A fixed fee. It applies even if no tax is payable. It is not interest.
Interest for default in furnishing return: 1% × number of months or part months × (tax on total income − TDS/TCS − advance tax − relief and credits − self-assessment tax paid before filing); Months run from the day after the due date to the date of filing. If no return is filed, the end date is the date of completion of assessment. Part of a month counts as a full month.
Interest for default in payment of advance tax: 1% × number of months or part months × (assessed tax − TDS/TCS − advance tax paid), if advance tax paid < 90% of assessed tax; Months run from 1 April after the tax year to the date of payment or filing of return. Each payment of self-assessment tax reduces the shortfall from the month of payment.
Interest for deferment of advance tax instalments: 1% per month on the shortfall of each instalment: 3 months for every instalment before the last, 1 month for the last instalment (15 March); Companies: 15% by 15 June, 45% by 15 September, 75% by 15 December, 100% by 15 March. The first three instalments (15 June, 15 September, 15 December) are charged for 3 months each and the last (15 March) for 1 month. Non-corporate assessees: 30% by 15 September, 60% by 15 December, 100% by 15 March (the first two charged for 3 months, the last for 1 month). Presumptive business assessees pay the full amount by 15 March. The shortfall is measured against the cumulative percentage of the tax due on the returned income, after TDS/TCS. Self-assessment tax paid after 15 March does not reduce it. For companies, no interest is charged on the 15 June instalment if at least 12% of the tax due was paid by 15 June, or on the 15 September instalment if at least 36% was paid by 15 September. For the last instalment, any shortfall below 100% of the tax due attracts interest.
Due dates for filing return (common cases): 31 July: non-audit assessees; 31 October: assessees whose accounts are audited; 30 November: assessees who must furnish a transfer pricing report; Check which due date applies before counting months.
Self-assessment tax payable: Tax on total income declared (including surcharge and cess) − advance tax − TDS − TCS − relief for foreign tax − eligible tax credit (MAT/AMT); If the result is zero or negative, there is no self-assessment tax. A negative result is a refund claim.
Total amount to be paid before filing: Self-assessment tax + interest for default in filing return + interest for default in advance tax + fee for late filing; Interest and fee are payable only if the default exists. Pay this whole sum before furnishing the return.
Order of adjustment of payment: Interest and fee first, then tax; Applies when the amount paid is less than the total dues, as per the Act's provision. Confirm the exact wording in your ICAI study material. The unpaid balance is tax.
Interest for late filing of return (simple interest): 1% per month or part of a month × tax unpaid at the date of furnishing the return (net tax payable after advance tax, TDS/TCS and relief); Runs from the day after the due date to the date of furnishing the return. It is charged on the tax unpaid at that date, which is the net tax payable after credits, including any advance tax paid. A part of a month counts as a full month.
Timing rule: Pay tax, interest and fee before furnishing the return, and give challan details in the return; A return without payment of self-assessment tax and interest is treated as defective. The defect can be rectified within the time allowed in the notice, and the return is then valid as if filed originally.

Quick revision

Some persons must always file, for example companies and firms, regardless of income.
An individual must generally file if income before claiming specified exemptions/deductions exceeds the basic exemption limit.
Certain specified conditions can make filing compulsory even below the exemption limit. Examples are large aggregate deposits in bank accounts, large expenditure on foreign travel or on electricity, and aggregate TDS/TCS above a specified amount (the TDS/TCS limit is higher for senior citizens). This list is illustrative, not complete. Each condition has its own limit, so learn the exact conditions and limits from your Income-tax Act, 2025 study material.
The due date depends on the person: earlier for non-audit cases, later for audit cases, later still for cases needing a transfer pricing report.
A return filed after the due date but within the permitted period is treated as a late return. It brings a fee and interest. Use the label given in your Income-tax Act, 2025 study material.
A revised return replaces an earlier return when you find an omission or wrong statement, within the allowed time.
Late filing fee is a flat fee, not charged per month. It has a higher amount and a lower amount for small-income persons. Learn both figures and the conditions for each exactly as given in the Income-tax Act, 2025 study material.
Interest for default in furnishing the return is simple interest at 1% per month or part of a month on the tax unpaid (tax payable after TDS, TCS, advance tax and relief). It runs from the day after the due date to the date of furnishing the return, or, if no return is filed, to the date of completion of assessment. Interest for default in furnishing the return, interest for default in payment of advance tax and interest for deferment of advance tax are three separate provisions, so work out each one separately.
Self-assessment tax is the tax payable after TDS, TCS, advance tax and relief. Pay it, together with the interest and the late filing fee payable, before you file the return. Interest is not tax. It is a separate amount paid along with the tax.
A return is defective if the tax and interest payable under the self-assessment provision, together with the fee payable for late filing, have not been paid on or before the date of furnishing the return. This is one of the specified conditions for a valid return, not a separate penalty.
The return must be verified by the person authorised to sign for that taxpayer type.
For a defective return, the officer gives notice and a limited time to fix it; if the defect is not rectified within the time allowed, the return is treated as not filed.

Common mistakes

Applying the income test after capital gains exemptions and deductions from gross total income. Fix: For the filing test, add back the capital gains exemptions, the exemptions for specified units and the deductions from gross total income first, then compare with the basic exemption limit. Do not add back other reliefs, such as the standard deduction.
Saying a loss-making company or firm need not file. Fix: Companies and firms must file whatever their income or loss, subject to any specific exceptions in the Act. Separately, losses under business, capital gains and other heads (except house property) can be carried forward only if the return is filed on or before the due date. House property loss can be carried forward even if the return is filed late.
Using 31 July for every assessee. Fix: Read the facts for audit or transfer pricing. Audit gives 31 October. A transfer pricing report gives 30 November.
Counting the updated return months from the due date or filing date of the original return. Fix: Count from the end of the tax year, which is 31 March.
Treating the late filing fee and the interest as the same thing, or charging only one of them. Fix: The fee is a fixed amount for the default. The interest depends on unpaid tax and months. Compute both and add them.
Charging interest on total income instead of on tax. Fix: The base is always tax, reduced by TDS/TCS, advance tax paid, relief and credits. Total income is only used to decide the ₹1,000 fee cap.
Filing the return first and paying the tax afterwards Fix: Remember the word "before". The tax, interest and fee are paid first, and the challan details go into the return. A return filed without this payment is treated as defective, and you must cure it within the notice period.
Not deducting TDS, TCS or foreign tax relief before arriving at the payable tax Fix: Use a fixed list of credits every time: advance tax, TDS, TCS, foreign tax relief, MAT or AMT credit.

Exam tips

Start every answer with the person type. Companies and firms settle the question in one line.
Always state the threshold next to the fact, for example '₹1,20,000 > ₹1,00,000'. This earns step marks.
MCQs often hide a trap: a capital gains exemption that brings income below the limit, or an RNOR with foreign assets. Check both.
Remember the principle in one line: the law blocks exemptions and deductions from being used to avoid filing.
Learn the thresholds as a list of numbers with their 'exceeds' or 'at least' wording. Quick revision just before the exam pays off.
Write the ladder of dates first. Examiners often test which assessee gets which date.
For an updated return answer, show the month count from 31 March and name the block before applying the percentage.
State why a return is belated, revised or updated in one line from the facts. This earns the provision and conclusion marks.