Central Board of Direct Taxes (CBDT) chief Sushil Chandra today said the companies which are claiming profit-linked deductions will have to file I-T returns in time.
Central Board of Direct Taxes (CBDT) chief Sushil Chandra today said the companies which are claiming profit-linked deductions will have to file I-T returns in time. The explanatory memorandum to Budget for 2018-19 proposes 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”. Explaining the provision, Chandra said any profit-linked deductions which are allowed under part C of Chapter VI will not be permitted if tax returns are not filed in time. “One more thing we have introduced is returns will have to be filed in time by certain companies which are using the deductions under chapter VI C that is linked to profit.
“It is not that every company will come into that. This is to make a discipline so that you also file return in time, we also get time to process it and we will try to finish those cases early,” he said. The tax provision will come into effect from April 1.