Section 139(4E) — the law in short
What the courts have decided on section 139(4E), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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Statutory position — s.139(4E) and s.139(4F): a business trust and an investment fund must file a return every year even when the pass-through leaves them nothing to be taxed on
CBDT Circulars & InstructionsCuts both ways
Our REIT's income is all exempt at trust level and our Category II AIF's income is all passed through to investors. Neither has any taxable income. Do they still have to file returns?
Yes, both, every year. Section 139(4E) requires every business trust which is not required to furnish a return of income or loss under any other provision of section 139 to furnish the return of its income in respect of its income or loss in every previous year, and section 139(4F) imposes the identical obligation on every investment fund referred to in section 115UB. In each case all the provisions of the Act apply as if it were a return required to be furnished under section 139(1). Sub-section (4E) was inserted by section 49(b) of the Finance (No. 2) Act, 2014 with effect from 1 April 2015; sub-section (4F) by section 35(III) of the Finance Act, 2015 with effect from 1 April 2016.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.