Answer

1. F

   Facts

   For a non-company taxpayer, the law protects you from prosecution for a Sec 139(1) default if the tax payable on regular assessment, after advance tax and TDS, does not exceed ₹10,000. Many salaried people with full TDS fall within this. You should still file the pending return.

2. P

   Provisions and law

   • Sec 276CC (now Sec 479)Prosecution for wilful failure to file a return on time; jail of 3 months to 2 years, or 6 months to 7 years where tax evaded exceeds ₹25 lakh
   • Sec 199, Income-tax Act 1961TDS deducted and paid to the government is treated as tax paid on your behalf and credited as per the Rules
3. A

   Analysis

   The proviso to Sec 276CC (now Sec 479) looks at tax payable minus advance tax and TDS. If your salary tax was ₹1,80,000 and TDS was ₹1,75,000, the net of ₹5,000 is under ₹10,000, so prosecution for the Sec 139(1) default should not lie. Show this with Form 26AS and a computation in your reply. This protection does not cover failure to file in response to a notice, so treat those cases more carefully.

4. C

   Conclusion

   1. 1Compute tax for each year and subtract TDS and advance tax.
   2. 2Attach Form 26AS showing the credits.
   3. 3File the pending return.
   4. 4Reply showing net tax payable is ₹10,000 or less.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.