Income Tax Return Verification and Self-Assessment under Section 140 and 140A of Income Tax Act, 1961

Sections 140 and 140A of the Income Tax Act, 1961 provide the legal framework for verification of income tax returns and payment of self-assessment tax before filing a return.

Section 140 - Return by whom to be verified

Section 140 specifies the person responsible for verifying a return of income furnished under the Income Tax Act.

• An individual generally verifies the return personally.
• If an individual is absent from India, the return may be verified by the individual or an authorised person holding valid authority.
• Where an individual is mentally incapacitated, the guardian or competent person may verify the return.
• In other cases where verification by the individual is not possible, an authorised person may verify the return.

For entities such as Hindu Undivided Families, companies, firms, limited liability partnerships, local authorities and other associations, section 140 specifies the person competent to verify the return.

Section 140A - Self-Assessment Tax

Section 140A deals with self-assessment tax payable by an assessee before furnishing a return of income.

Where tax is payable on the basis of a return furnished under applicable provisions of the Income Tax Act, the assessee must pay the tax along with applicable interest and fee after considering:

• Advance tax already paid.
• Tax deducted or collected at source.
• Eligible tax reliefs and deductions.
• Foreign tax relief where applicable.
• Tax credits available under the Act.

The return is required to be accompanied by proof of payment of self-assessment tax, interest and applicable fee.

Importance of Sections 140 and 140A