Our income tax department divides the income of every citizen into five broad categories. These categories are divided according to the income: Salary, house property, business, capital gains, and other sources. Every Indian citizen whose tax falls under the tax bracket is supposed to pay an income tax to the government and file their tax returns within a fixed deadline. Different sections and categories are divided to deal with other types of returns. Section 139(1) of the Income Tax Act is among such categories.Â
Section 139(1) of income tax act of 1961 has different subsections and regulations per case and circumstances. This guide will help you learn more about Section 139. There are provisions in the Income Tax Act, of 1961 to take care of these scenarios. The Income Tax Act has provideidelines to the taxpayers under section 139(1) of income tax act, which shall guide them from various aspects including late ITR filing to avoid other repercussions of the delay in filing ITR. We provide a detailed Tax Return 101 article to help newbie taxpayers with their questions and concerns.
What Is Section 139(1) Of Income Tax Act?
Section 139(1) of the Income Tax Act acts as a framework work taxpayers to file late returns. There are different sub-sections under 139(1) of the Income Tax Act. Section 139(1) of the Income Tax Act offers means to rectify the non-submission of Income Tax Returns within the timeline.
- Before digging deep into the article, let’s understand mandatory return policies:
- Anyone having a total income exceeding the exemption limit
- Includes firms ULP (Unlimited Liability Partnership) and LLP (Limited Liability Partnership)
- Public, private, domestic, or foreign entities doing business in IndiaÂ
- Entity retaining authority for an account based outside IndiaÂ
- Residents with assets outside of India
- All BOI Body of Individuals(BoI), AOP Association of Persons, and HUF Hindu Undivided Family have total income exceeding the exemption limit specified in section 10.
- This is only for Voluntary Tax Returns ( if individuals or entities) are required to file the return.
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Who Can File ITR Under Section 139(1)?
Any Indian citizen whose total Salary exceeds the basic exemption limit is required to file their income tax return as per Section 139(1) of the Income Tax Act. According to the financial year 2022-23, the exemption limit is Rs. 2.5 lakhs for an individual below the age of 60 years, Rs. 3 lakhs for senior citizens (aged 60 years or above but below 80 years), and Rs. 5 lakhs for super senior citizens (aged 80 years or above).Â
| Moreover, those who own losses under any heads of earnings or seek a refund of extra tax paid are mandatory to do so. |
Not filing or late filing ITR: If a taxpayer does not file his/her ITR on time, the taxpayer can be penalized with Rs. 5,000/- If the ITR is filed after the due date but before 31st December of the assessment year, you are liable to pay a penalty at Rs. 1,000 as mentioned above. However, If an ITR is filed after 31st December of an assessment year, the penalty amount is increased to Rs. 10,000, and for small taxpayers, the maximum fee will be Rs.10K only. If the total income of the taxpayer is up to Rs 5 Lakhs, the penalty amount shall not exceed Rs. 1,000.
Taxpayers may also be liable to pay interest on the tax payable. The interest rate is 1% per month or part of the month for the delay in filing the ITR.
Key Benefits and Features of Filing ITR: Under Section 139(1) of the Income Tax Act
Filing your income tax return has several benefits:
- Helps you comply with the legal requirements of the Income Tax Act.
- Enables you to claim refunds of excess tax paid during the year
- It works as Proof of income(POI) for various purposes such as obtaining loans, visas, and other financial transactions
- You can maintain a clear tax record, it is beneficial for any future tax-related issues
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Due Dates of Filling Return (Section 139(1) Of Income Tax Act)
After getting the basic knowledge one should know the due date of filling returns. As people attain their income through different methods, Section 139 prescribes due dates for the specific demand. These dates are:
- For those accounts that don’t require an audit report, July 31st is a due date for both persons and entities. These have been: a salaried full-time employee, a consultant, a freelancer, and self-employed.
- Account book auditing is due on September 30, for other entities as per Official Gazette Notification. It includes all business entities, self-employed professionals or consultants, and working partners of companies.
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Consequences of Not Filing An Income Tax Return: Under Section 139(1)
If any taxpayer fails to file an income tax return before the due date, they must pay a penalty under Section 234F of the Income Tax Act. The penalty amount depends on the total income of the taxpayer. If a return is filed after the date for filing of a hard copy but before the 31st December of the AY in which the return is to be filed, there will be an applicable fee per section 234F at Rs. 5,000.
If the return filing is done post-31st December but before the AY ends, then a Rs. 10,000 YYSTYPE penalty will be charged. In addition to the penalty, there are other ramifications of not submitting an income tax return before its due date. Losses arising from the preceding year can’t be carried forward to future years by a taxpayer. Furthermore, the taxpayer may lose important deductions or exemptions for filing after the corresponding due date.
Don’t worry if you have committed a mistake during ITR filing. As per section 139, rectify it by amending your ITR and filling revised return.
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Conclusion
Section 139(1) of the Income Tax Act 1961 is a very crucial section that talks about the filing of income tax returns by taxpayers. Failure to comply with this provision can lead to the payment of fines and interest which will carry lasting damage to the taxpayer’s finances. Accordingly, every taxpayer is expected to comply with the provisions of Section 139(1). Your ITR filing not only fulfills your liability under the law but has multiple advantages, for example, the claim of refunds and having a good tax record.
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FAQs About 139(1) of the Income Tax Act
Q1. What is the seventh proviso of 139(1) of income tax?
Ans:- The seventh Proviso to Section 139(1) of Income Tax indicates that a certain class of individuals who carry on high-value transactions in a financial year must necessarily file an ITR or (Income Tax Return) if the total income is below the income tax exemption limit.
Q2. What is the difference between filing 139 1 and 139 4?
Ans:- If an income tax return is not filled before 31st July. It can be late filed before the end of the assessment year or 31st March. When an income tax return is filed after the due date but within the end of the assessment year, Section 139(4) must be selected.
Q3. What is the first provision to Section 139 1 of the Companies Act 2013?
Ans:- Of the auditor or non-ratification of appointment by the shareholders as per the first proviso to sub-section (1) of section 139. In the case of a company whose accounts are subject to audit by an auditor appointed by the C&AG, such casual vacancy shall be filled by the C&AG within 30 days