Section 80AC of ITA, 1961 : Section 80Ac: Deduction Not To Be Allowed Unless Return Furnished

Explanation using Example

Imagine Mr. Sharma runs a manufacturing unit in a special economic zone. For the financial year 2016-17, he is eligible for a deduction under Section 80-IAB of the Income-tax Act, which offers tax benefits to units established in special economic zones. However, to claim this benefit, Mr. Sharma must file his income tax return by the due date, which is usually July 31st of the assessment year, unless extended by the government.

If Mr. Sharma fails to file his return by the due date, he will lose the opportunity to claim the deduction under Section 80-IAB for that year, even though his manufacturing unit qualifies for the deduction. This strict compliance requirement is mandated by Section 80AC of the Income-tax Act, which states that deductions under certain sections, including 80-IAB, are contingent upon timely filing of the tax return.