Benefit of 80C is not available if income tax return is filed after due date is a misconception

As per existing provisions of Section 80AC of the Act, no deduction was admissible under section 80-IA or section 80-IAB or section 80-IB or section 80-IC or section 80-ID or section 80-IE, unless the return of income by the assessee was furnished on or before the due date specified under Section 139(1).

To bring uniformity in all income-based deduction, Finance Bill 2018 has now proposed that the scope of section 80AC shall be extended to all similar deductions which are covered under any other provisions of chapter VIA (sections 80 H to 80RRB) under the heading “C.Deductions in respect of certain incomes” shall be allowed only if return is filed with is due date specified under section 139 (1).

There were misconception among people that Benefit of 80-C will not be available if return is not filed within due date. 80 AC amendment is proposed for heading C of Chapter VIA and andSection 80C is under heading B of Chapter VIA. Therefore As per the amendment benefit of 80C is still available even if return is filed after due date.

Conclusion:

Benefit of 80C is still available is return of income is filed after due date.

As per the amendment benefit of 80C is still available even if return is filed after due datebut for claiming the deduction under section 80JJA, 80JJAA, 80LA, 80O, 80P, 80QQA, 80QQB, 80R, 80RR, 80RRA, 80RRB, filing Return of Income under section 139(1) is now mandatory.

In case of belated return, deduction under any other provisions of chapter VIA (sections 80 H to 80RRB) under the heading “C.Deductions in respect of certain incomes” cannot be claimed.

https://studycafe.in/2017/06/file-income-tax-return-online.html
The bare text of the Memorandum of Finance Bill 2018 is given hereby for your reference.
Deductions in respect of certain incomes not to be allowed unless return is filed by the due date.The existing provisions contained in the section 80AC of the Act provide that no deduction would be admissible under section 80-IA or section 80-IAB or section 80-IB or section 80-IC or section 80-ID or section 80-IE, unless the return of income by the assessee is furnished on or before the due date specified under sub-section (1) of section 139 of the Act. This burden is not cast upon assesses claiming deductions under several other similar provisions.

In view of the above, it is proposed 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.

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.

You may also refer:

• Income Tax Slab Rates for FY 2018-19 | AY 2019-20
• Rebate under Section 87A of Income Tax Act,1961
• DEDUCTIONS FROM GROSS TOTAL INCOME (CHAPTER VI-A)
• Income Tax Slab Rates for FY 2018-19 | AY 2019-20
• Download Memo of Budget & Finance Bill 2018
• 10 POINTS TO REMEMBER IN BUDGET 2018-19
• Section 80D limit increased to Rs 50,000 for senior citizens
• Budget 2018 : TDS & manner of payment in respect of Trusts

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