• Overview
• Persons to whom the scheme is not applicable
• Occupation of immovable property
• Urban agglomeration of Delhi.
• Subscriber to a telephone
• Motor Vehicle
• Due date
• Specified floor area of the immovable property for urban agglomeration of different cities
• When Form 2C is not filed
• Basic conditions of the scheme

Overview

With effect from 1-8-1998 persons fulfilling any one of the six conditions are required to file a return of income in Form No. 2C. This is a simple form 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.

1. 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 27th June, 1997 and S.O. 668 (E) dated the 6th August, 1998.
2. owner or the lessee of a motor vehicle.
3. subscriber to a telephone.
4. incurring expenditure for himself or for any other person on travel to any foreign country .
5. holder of the credit card, not being an "add-on" card, issued by any bank or institution.
6. member of a club where entrance fee charged is twenty five thousand rupees or more.

Persons in respect of whom the scheme is not applicable

• The conditions specified in clause (i) to clause (vi) do not apply to any person being a non resident.
• The conditions specified in clause (i) or clause (iii) do not apply to any senior citizen who has attained 65 years of age but is not engaged in any business or profession during the previous year. (Notification S.O. 710 (E) date 20th August, 1998).
• Travel to any foreign country does not include travel to Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka. Travel to Saudi Arabia on Haj pilgrimage organised by Central Haj Committee and to China on pilgrimage to Kailash Mansrover are not to be regarded as travel to any foreign country (Notification Nos. S.O. 711 (E) and S.O. 712 (E) dated 20th August, 1998).

Please note that the Form must be filled up and filed in the Income-tax office even if the total income of the assessee is below the basic exemption limit of Rs. 40,000/- for the financial year 1997-98 ( relevant to Asstt. Year 1998-1999). This limit is increased to Rs. 50,000/- for the financial year 1998-99.

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.If the property in question is equal to or exceeds the floor 600 sq. ft. in the case of residential property (other than huts and kutcha dwellings ) and 100 sq. ft. in the case of commercial property.

Urban agglomeration of Delhi.

All persons residing in the urban agglomeration of Delhi are covered by this scheme. The agglomeration includes:-

The state of Delhi.

• The area comprised in Gurgaon Muncipal committee within the meaning of the Punjab Government Gazette Part-I No. 1405-14-61/5076 dated March 4, 1966.
• The areas comprised in Faridabad Complex of District Faridabad within the meaning of the Faridabad Complex (Regulation and Development ) Act. 1975 (Haryana Act No. 10 of 1975).
• The areas comprised in Ghaziabad Municipality as notified under Uttar Pradesh Municipal Act. 1916 (U.P. Act No. 11 of 1916).
• The areas in the district of Ghaziabad (other than areas comprised in the Ghaziabad Municipality) notified by the Government of Uttar Pradesh. Under Uttar Pradesh (Regulations of Building Operation) Act. 1958 (U.P. Act No. 34 of 1958) and regulated by the Ghaziabad Development Authority as constituted under Uttar Pradesh Urban Planning and Development Act. 1973 (U.P. Act No. 30 of 1974.
• The areas notified by the Government of Uttar Pradesh in Notification No. 2042-BHAU/18-11-123/AN/85 dated 11th July, 1989 under clause (d) of section 2 of the Uttar Pradesh Industrial Area Development Act. 1976 (U.P. Act No. 6 of 1976) and regulated by New Okhla Industrial Development Authority constituted under section 3 of the said Act.

Subscriber to a telephone

Please note that 'telephone' includes cellular telephone but not a Pager.

Motor Vehicle

Shall have the meaning assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988. 'Motor vehicle' or 'vehicle' means any mechanically propelled vehicle adapted for use upon roads, whether the power of propulsion is transmitted there to from an external or internal source, and includes a chassis to which a body has not been attached, and a trailer but does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises, or a vehicle having less than four wheels fitted with engine capacity of not exceeding twenty-five cubic centimeters. Thus, virtually all four wheelers (cars,buses, trucks, tractors, etc.) are covered under the definition of 'motor vehicle.

Due date

The due date for filing the return under proviso to section 139(I) for the assessment year 1998-99 has been extended to 31 Oct' 1998. However, late returns under the scheme are been accepted at designated offices.

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

When Form 2C is not filed

If a person who is required to furnish a return of his income as required by the proviso to sub-section (1) of section 139, that is under the scheme fails to furnish such return on or before the due date, he shall be liable to pay by way of penalty, a sum of five hundred rupees.

Basic conditions of the scheme

• The person must not be furnishing the return under seciton 139(1).
• The person must be residing in a notified area.
• The list of notified areas is as below