Income tax failling

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yaseen (Querist)
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07 March 2016 one of my frnd closed his business in december 2015. he has some tds refund for the AY 2016-17 He wants to file a income tax return for AY 16-17 now itself... can he file a income tax return before the financial year is complete.. advise me urgent.

CA Vap Patel

CA Vap Patel (Expert)
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07 March 2016 Yes he can, There are special cases where income is taxed in same financial year only. One of the case is section 176 of income tax act 1961, As per that section, if business is discontinued then any income received after discontinuation shall be deemed to be the income of the recipient from such discontined business and charge to tax accordingly in the year of receipt. So your case perfectly fit to section 176

yaseen

yaseen (Querist)
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07 March 2016 thank u sir for ur valuable information... sir shall i file IT return U/S 139 OR U/S 176. Once i called to incometax efilling they said that "STILL ITR FORM FOR THE AY 16-17 NOT RELEASED SO U CAN'T FILE.." What shall i do now plz rply me

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CA Vap Patel

CA Vap Patel (Expert)
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07 March 2016 You don't need to file any return of income for case related to section 176(3A), You have to make an application to AO informing him about discontinuance of business and urging them to make assessment u/s 176(3A) then he will do the assessment on the basis of information given to him. One more thing the time limit for making such application is within 15 days from discontinuance of business

yaseen

yaseen (Querist)
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07 March 2016 thank u sir