Section 115WD of Income Tax Act "Return of fringe benefits"
115WD. (1) Without prejudice to the provisions contained
in section 139, every employer who during a previous year
has paid or made provision for payment of fringe benefits to
his employees, shall, on or before the due date, furnish or
cause to be furnished a return of fringe benefits to the
Assessing Officer in the prescribed form and verified in the
prescribed manner and setting forth such other particulars
as may be prescribed, in respect of the previous year.
Explanation.-In this sub-section, "due date" means,-
(a) where the employer is-
(i) a company; or
(ii) a person (other than a company) whose accounts are
required to be audited under this Act or under any other law
for the time being in force,
the 30th day of September of the assessment year;
(b) in the case of any other employer, the 31st day of July
of the assessment year.
(2) In the case of any employer who, in the opinion of the
Assessing Officer, is responsible for paying fringe benefit
tax under this Act and who has not furnished a return under
sub-section (1), the Assessing Officer may, after the due
date, issue a notice to him and serve the same upon him,
requiring him to furnish within thirty days from the date of
service of the notice, the return in the prescribed form and
verified in the prescribed manner and setting forth such
other particulars as may be prescribed.
(3) Any employer responsible for paying fringe benefit tax
who has not furnished a return within the time allowed under
sub-section (1) or within the time allowed under a notice
issued under sub-section (2), may furnish the return for any
previous year, at any time before the expiry of one year
from the end of the relevant assessment year or before the
completion of the assessment, whichever is earlier.
(4) If any employer, having furnished a return under
sub-section (1), or in pursuance of a notice issued under
sub-section (2), discovers any omission or any wrong
statement therein, he may furnish a revised return at any
time before the expiry of one year from the end of the
relevant assessment year or before the completion of the
assessment, whichever is earlier.
115WE. (1) Where a return has been made under section
115WD, such return shall be processed in the following
manner, namely:-
(a) the value of fringe benefits shall be computed after
making the following adjustments, namely:-
(i) any arithmetical error in the return; or
(ii) an incorrect claim, if such incorrect claim is apparent
from any information in the return;
(b) the tax and interest, if any, shall be computed on the
basis of the value of fringe benefits computed under clause
(a);
(c) the sum payable by, or the amount of refund due to, the
assessee shall be determined after adjustment of the tax and
interest, if any, computed under clause (b) by any advance
tax paid, any tax paid on self-assessment and any amount
paid otherwise by way of tax or interest;
(d) an intimation shall be prepared or generated and sent to
the assessee specifying the sum determined to be payable by,
or the amount of refund due to, the assessee under clause
(c); and
(e) the amount of refund due to the assessee in pursuance of
the determination under clause (c) shall be granted to the
assessee:
Provided that no intimation under this sub-section shall be
sent after the expiry of one year from the end of the
financial year in which the return is made.
Explanation.-For the purposes of this sub-section,-
(a) "an incorrect claim apparent from any information in the
return" shall mean a claim, on the basis of an entry, in the
return,-
(i) of an item, which is inconsistent with another entry of
the same or some other item in such return;
(ii) in respect of which the information required to be
furnished to substantiate such entry has not been so
furnished under this Act; or
(iii) in respect of a deduction or value of fringe benefits,
where such deduction or value exceeds specified statutory
limit which may have been expressed as monetary amount or
percentage or ratio or fraction;
(b) the acknowledgement of the return shall be deemed to be
the intimation in a case where no sum is payable by, or
refundable to, the assessee under clause (c), and where no
adjustment has been made under clause (a).
(1A) For the purposes of processing of returns under
sub-section (1), the Board may make a scheme for centralised
processing of returns with a view to expeditiously
determining the tax payable by, or the refund due to, the
assessee as required under that sub-section.
(1B) Save as otherwise expressly provided, for the purpose
of giving effect to the scheme made under sub-section (1A),
the Central Government may, by notification in the Official
Gazette, direct that any of the provisions of this Act
relating to processing of returns shall not apply or shall
apply with such exceptions, modifications and adaptations as
may be specified in that notification; so, however, that no
direction shall be issued after the 31st day of March, 2011.
(1C) Every notification issued under sub-section (1B), along
with the scheme made under sub-section (1A), shall, as soon
as may be after the notification is issued, be laid before
each House of Parliament.
(2) Where a return has been furnished under section 115WD,
the Assessing Officer shall, if he considers it necessary or
expedient to ensure that the assessee has not understated
the value of fringe benefits or has not underpaid the tax in
any manner, serve on the assessee a notice requiring him on
a date to be specified therein, either to attend his office
or to produce, or cause to be produced, any evidence on
which the assessee may rely in support of the return:
Provided that no notice under this sub-section shall be
served on the assessee after the expiry of six months from
the end of the financial year in which the return is
furnished.
(3) On the day specified in the notice issued under
sub-section (2), or as soon afterwards as may be, after
hearing such evidence as the assessee may produce and such
other evidence as the Assessing Officer may require on
specified points, and after taking into account all relevant
material which he has gathered, the Assessing Officer shall,
by an order in writing, make an assessment of the value of
the fringe benefits paid or payable by the assessee, and
determine the sum payable by him or refund of any amount due
to him on the basis of such assessment.
(4) Where a regular assessment under sub-section (3) or
section 115WF is made,-
(a) any tax or interest paid by the assessee under
sub-section (1) shall be deemed to have been paid towards
such regular assessment;
(b) if no refund is due on regular assessment or the amount
refunded under sub-section (1) exceeds the amount refundable
on regular assessment, the whole or the excess amount so
refunded shall be deemed to be tax payable by the assessee
and the provisions of this Act shall apply accordingly.