FORM NO. 2C
RETURN OF INCOME
[See rule 12(1)(d) of Income-tax Rules, 1962]

This form may be used only by any person who has not filed his return of income under sub-section (1) of section 139 and who at any time during the previous year fulfils any one of the following conditions specified in the first proviso to sub-section (1) of section 139, namely :-

(i) is in occupation of an immovable property exceeding a specified floor area, whether by way of ownership, tenancy or otherwise as specified in the Notification Nos. S.O. 467(E) dated the 27^th June, 1997 and S.O. 668 (E) dated the 6^th August, 1998;
(ii) is the owner or the lessee of a motor vehicle ;
(iii) is a subscriber to a telephone ;
(iv) has incurred expenditure for himself or for any other person on travel to any foreign country ;
(v) is a holder of the credit card, not being an ‘add-on’ card, issued by any bank or institution ;
(vi) is a member of a club where entrance fee charged is twenty five thousand rupees or more.

PART I GENERAL INFORMATION

PART II INFORMATION IN RESPECT OF CONDITIONS SPECIFIED IN THE FIRST PROVISO TO SUB-SECTION (1) OF SECTION 139

During the previous year - (Tick appropriate box)

1. Were you in occupation of an immovable property exceeding the floor area specified in the above notifications ?

2. Were you the owner or lessee of a motor vehicle ?

3. Were you a subscriber to a telephone ?

4. Did you incur any expenditure for yourself or for any other person(s) on travel to a foreign country ?

5. Were you a holder of a credit card not being an add-on card, issued by any bank or institution .

6. Were you a member of a club where entrance fee charged is twenty-five thousand rupees or more.

PART III
STATEMENT OF INCOME AND TAX PAID

Tick appropriate box - Give your source(s) of income
 

  (attach copy of challan)       VERIFICATION  

I ……………………………………………………………………………………………………….…………… (Name in full in block letters) son / daughter / wife of ……………………………………………………………………..……………..........
solemnly declare that, to the best of my knowledge and belief the information given in this return and the annexures and statements accompanying it is correct, complete and truly stated and in accordance with the provisions of Income-tax Act, 1961 in respect of income chargeable to income-tax, for the previous year relevant to the assessment year.

*I further declare that I am making this return in my capacity as ……………….…………….…………….
and I am also competent to make this return and verify it.
 

 
Notes :

1. Capacity Write authorised person / guardian / Karta of Hindu undivided family / member of the Hindu undivided family / Managing Director / Director / Principal Officer / Managing Partner / Partner / Chief Executive Officer as per section 140. Attach power of attorney if you are making this return as an authorised representative.

2. Status For indicating the status, please use the following code numbers :
 
 

3. Strike off whichever is not applicable.

INSTRUCTIONS FOR FILLING UP FORM NO. 2C [ASSESSMENT YEAR 1998-99]  

Form No. 2C is a simple format for complying with the requirement of filling a return of income under the proviso to section 139 of the Income-tax Act. This Form is meant for the use of persons, not furnishing return of income under sub-section (1) of section 139 and satisfying any one of the six conditions laid down in the proviso namely, -

(i) in occupation of an immovable property exceeding a specified floor area, whether by way of ownership, tenancy or otherwise as specified in the Notification Nos. S. O. 467 (E) dated 27^th June, 1997 and S.O. 668 (E) dated the 6^th August, 1998;
(ii) owner or the lessee of a motor vehicle ;
(iii) subcriber to a telephone ;
(iv) incurring expenditure for himself or for any other person on travel to any foreign country ;
(v) holder of the credit card, not being an "add-on" card, issued by any bank or institution ;
(vi) member of a club where entrance fee charged is twenty-five thousand rupees or more.

However, the conditions specified in clause (I) to cdlause (vi) of the first proviso do not apply to any person being a non-resident. Similarly, the conditions specified in clause (i) or clause (iii) of the first proviso do not apply to any person being an individual who has attained 65 years of age but is not engaged in any business or profession during the previous year. (Notification No. S.O. 710 (E) dated 20^th August, 1998). Please also note that travel to any foreign country does not include travel to Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka. Similarly, travel to Saudi Arabia on Haj pilgrimage organised by Central Haj Committee, Mumbai constituted under Haj Committee Act, 1959 and that to China on pilgrimage to Kailash Mansarover organised by Ministry of External Affairs, Government of India are not be regarded as travel to any foreign country for the purpose of sub-section
(1) of section 139 (Notification Nos. S.O. 711(E) and S.O. 712 (E) dated 20^th August, 1998).

Please note that the Form must be filled up and filed in the Income-tax office even if your income is below the exemption limit for this year i.e. Rs. 40,000/-.
Due date : The due date for filing the return under proviso to section 139(1) for the assessment year 1998-99 has been extended to 30-09-1998.

Rates of tax : For this year, the following rates of tax will apply :

(a) For Individuals, HUFs, Association of Persons and Body of Individuals.
 

(b) For co-operative societies
 
 

(c) For firms
     On the whole of the total income              35 percent

(d) For domestic companies
     On the whole of the total income              35 percent

Occupation of immovable property

This includes occupation by way of ownership, tenancy or otherwise (say, as a paying guest). Occupation may be either of residential or commercial property. Please tick the "Yes" box only if the property in question is equal to or exceeds the floor area given overleaf.

Specified floor area of the immovable property for urban agglomeration* of different cities :
 
 

 * The urban agglomerations fo the cities mentioned above are given in Annexures.

Subscriber to a telephone :  Please note that 'telephone includes cellular telephone also
CODES  -  Please fill in the appropriate code for status as given in the Notes to Form No. 2C.
Steps for filling up the Return
 Please fill up  Part I  carefully, leaving one box blank between works / lines.  Individuals should give their date, month and year of birth.  In the case of companies, firms and trusts, the date of incorporation, date of partnership deed and date of trust deed, are to be  mentioned

In  Part III, the  gross total income consists of income from the following heads    /sources :-
 

(A)  Salaries
Salary includes arrears or advance of salary, payment received in lieu of leave not availed of, bonus, wages, fees, pension (including commuted value of pension), any annuity or gratuity and profits in lieu of salary, perquisites and all other cash allowances.  Salary received / receivable from more than one employer should be included in the gross salary.  Relevant provisions are in sections  15  and 17 of the  IT Act, 1961.  Income of the nature exempt  u/s 10, is not to be included in this figure.  Normally, all cash allowances are taxable.  However, relevant exemptions  u/s 10(5),  10(13A)  and  10(14)  are available to the extent stipulated.  Perquisites provided by an employer are  taxable under  Section  17(2)(i) and (iii),  Section 17(2)(iii) read with Rule 3 and  Section  17(2)(iv) and (v).

The following deductions are allowed from the salaries  :
1. Standard  deduction to the extent of  1/3 of gross salary or  Rs. 20,000 whichever
     is less.
2. Entertainment allowance, to the extent provided in Section 16(ii).
3.  Professional tax or tax on employment levied by a State Government.
After deducting these amounts from salaries, you arrive at the income chargeable under the head "salaries".
 

(B) House  Property
Annual  Value.  For computing the annual value, first the amount for which the property might reasonably be expected to let from year to year or the actual amount received, whichever is higher, is to be taken.  From this, municipal taxes, either current or arrears paid during the previous year and the deductions under section 24 namely repairs, insurance paid, annual charge, ground rent and vacancy allowance etc. are allowed.
No  deduction u/s 24 is allowed in respect of a self-occupied property or a property which could not be occupied because of employment, business or profession at another place  or where the annual value is taken as nil.  However, in respect of the self-occupied property,  Rs. 15,000 is allowed as deduction for interest on borrowed capital.  This deduction is also available to a person whose house is vacant due to employment, etc. elsewhere.  In such a case, the net result of computation will be a loss upto  Rs. 15,000.
 

(C)     Business or Profession 
The net income from business or profession is arrived at after deducting expenditure allowable under this head.  Depreciation under section  32  is  admissible as per  Income tax  Rules.

(D)     Capital  Gains
Short-term  and  long-term capital assets.  Profits and gains arising from the transfer of a capital asset are included in the taxable income as 'capital gains'.  If the asset in question was held by the  taxpayer for more than  36 months upto the date of transfer, the asset is regarded as a long-term capital asset.  In case of shares in a company, units of  UTI  and  Mutual  Funds  and the securities  listed in the stock exchanges, the period of holding is more than  12 months for being considered a long term capital asset.  An asset which does not qualify for being considered a long-term  asset is considered to be a short-term asset Capital gain arising from the transfer of a long-term capital asset gets concessional  treatment  vis-à-vis  capital gains arising from the transfer of a short-term capital  asset.

a. Computation  of  short-term capital  gain.  The short-term capital gain is to be computed by deducting the following from the full value of consideration  :
(i)  Cost of acquisition   (ii)  Cost of  improvement  (iii)  Cost  of  transfer

b. Computation  of  short-term capital  gain.  The short-term capital gain is to be computed by deducting the following from the full value of consideration  :
(i)  Indexed  cost of acquisition   (ii)  Indexed  cost of  improvement  (iii)  Cost of  transfer.
The indexed cost of acquisition and indexed cost of improvement are to be computed by indexing the cost of acquisition and cost of improvement  using the following cost of inflation  index  :
 

Exemptions.  The following exemptions are admissible to the extent prescribed in the respective sections.
The amount exempted is to be reduced from the capital gain computed as above and the balance amount is to be shown in the return.

Short-term  capital  gains
1.    Amount exempt  u/s 54B(1), 54D(1)  or  54G(1)
2.    Amount deposited  u/s 54B(2), 54D(2)  or  54G(2)

Long-term  capital  gains
1.    Amount exempt  u/s 54(1), 54B(1), 54D(1), 54EA(1), 54EB(1), 54F(1) or  54G(1)
2.    Amount deposited  u/s  54(2), 54B(2), 54D(2), 54F(2)  or  54G(2)
The sum total of short-term capital gains and long term capital gains is the income from capital gains. If there is loss on transfer of either short-term or long-term  capital asset, it can be set off against income from capital gain arising on transfer of any other asset.

(E)    Income from other sources
a.  Gross Income.  Income which is not chargeable under any of the above mentioned heads and which is not from business or profession is to be shown here.  Examples of other sources of income are dividend, interest, winnings from lotteries,  crossword  puzzles, horse-races, royalty, rent for plot of land etc.

b.   Deductions.   Deductions  are  allowable  u/s  57.  These include expenses laid out for earning the income.  In the case of income from family pension, a standard deduction to the extent of  1/3rd of pension or  Rs. 12,000 whichever  is  lower  is  allowed.
Gross  total  income
It will be the aggregate of the net income from each head / source of income and is to be mentioned in  column 1  of  Part III of the form.

Deductions
If  you are eligible for any deductions under  Chapter  VI A  of the  Income-tax Act, please mention the amount in the place provided.  You may, for example, be eligible to claim deduction(s) in respect of payment of  medical insurance premia, or medical  treatment of handicapped  dependant(s)  or  repayment  of  loan  taken for  higher  education, etc.  You may like to contact the  Public  Relations  Officer in  the  Income-tax  office for guidance on the deductions available to you.  The  aggregate amount of the deductions for which you are eligible should be  reduced  from  the  gross total income.

Net  agricultural  income.
The  net agricultural income is to be computed in accordance with  Part  IV of the First  Schedule  to the  Finance  (No. 2)  Act, 1998.

Rebate  under  section  88
You  are entitled to a rebate from the tax payable on total  income, i.e. total income as reduced by long-term capital gains, of an amount  equal  to  20%  of the  aggregate sums of prescribed investments  or  payments, subject to maximum rebate of  Rs. 12,000                     (Rs. 14,000)  in case of  subscriptions to shares and debentures offered in approved issues of  public  companies for infrastructure and power sectors).  The prescribed investments / payments include life insurance premia, provident fund contribution,  debentures of a equity shares in a public company engaged in infrastructure, repayment  of  housing loans, etc.

Rebate under section  88B  to  senior  citizen
If you are a senior citizen, i.e. you have attained the age of sixty-five years during the previous year or earlier, you are entitled to claim a rebate at the rate of hundred percent of tax on total income subject to a maximum limit of  Rs. 10,000.
 

•  If  you are entitled to tax rebate u/s 88 or 88B, please mention the amount in column 6.

•  If, after claiming the  deductions and rebate, some tax is payable, please pay it before filing the return.  On long-term capital gain tax is payable @ 20% under section  112.

•  Do not forget to attach a copy of the challan.  The  nearest  Income-tax  office will be happy to supply you a challan and to guide you regarding the  authorised banks which accept payment  of  income-tax.

•  Please satisfy yourself that the return has been correctly filled in and then sign the verification before filing the return.