Skip to content

CMA Intermediate · Direct and Indirect Taxation · Filing of Return of Income

Mr. Raman's return for a tax year was intimated as defective. He did not rectify it within the period allowed, so the Assessing Officer treated it as invalid. Which statement follows from section 263(7)?

When the defect is not rectified within the allowed period, the return is treated as invalid and the Act applies as though the assessee had never furnished a return. It is not kept valid or converted into any other type of return.

  1. AThe return is treated as a valid return with a penalty for late rectification
  2. BThe Act applies as if Mr. Raman had failed to furnish the returnCorrect
  3. CThe return is automatically converted into an updated return
  4. DThe return stays valid until the assessment is completed

Explanation

Under section 263(7)(b), a defect not rectified within the period allowed makes the return invalid, and the Act applies as if the assessee had failed to furnish a return. It is not converted into an updated return and does not remain valid.

Did you get it right without looking?

One question tells you little. A timed set on Filing of Return of Income shows your real accuracy, how long you take and where you lose marks.

Practise Filing of Return of IncomeFree diagnostic mock

More Filing of Return of Income questions