Section 139 of Income Tax Act: Types, Due Dates & Filing Requirements

Understanding Section 139 of the Income Tax Act

Section 139 of the Income Tax Act, 1961, is the section that governs the filing of income tax returns (ITR). It mandates who must file returns, the due dates, and the consequences of non-compliance.

This section is divided into multiple subsections, covering different scenarios for filing tax returns, including:

• Mandatory filing for individuals, businesses, and firms
• Provisions for carrying forward losses
• Late return filing and penalties
• Filing revised returns to correct errors
• Handling defective returns and rectifications

Each of these provisions ensures that taxpayers file their income tax returns properly and within the deadlines. It is crucial for individuals and businesses to understand these subsections to stay compliant with tax laws.

Types of Income Tax Returns under Section 139

Section 139(1): Mandatory & Voluntary Filing of ITR

Section 139(1) specifies who is required to file an income tax return. It applies to various taxpayers, including individuals, companies, firms, and other entities.

Who is required to file an income tax return?

• Individuals earning above the exemption limit
  • Below 60 years: Income above ₹2,50,000
  • 60-80 years (Senior Citizens): Income above ₹3,00,000
  • Above 80 years (Super Senior Citizens): Income above ₹5,00,000
• All companies and firms, irrespective of profit or loss.
• Residents having foreign income or foreign assets.
• Individuals who have deposited ₹1 crore or more in a bank account.
• Individuals spending ₹2 lakh or more on foreign travel.
• People with electricity consumption above ₹1 lakh in a financial year.
• Individuals covered under tax audit provisions (Section 44AB).

Even if a person is not required to file a return mandatorily, they can still file voluntarily, which helps in maintaining financial records, applying for loans, or during visa applications.

Section 139(3): Filing Returns for Loss Carry Forward

Under Section 139(3), taxpayers can file returns even if they have incurred losses, allowing them to carry forward losses to offset against future profits.

Why is this important?

• If a business incurs a loss, it can set it off against future income.
• This reduces the future tax burden.
• However, to claim this benefit, the return must be filed before the due date.

Types of losses that can be carried forward:

• Business losses (including speculative business losses)
• Capital gains losses
• Losses from racehorse maintenance
• House property losses (can be carried forward even if filed late)

If a taxpayer fails to file within the due date, the losses (except house property loss) cannot be carried forward.

Section 139(4): Belated Returns

If a taxpayer misses the due date for filing an income tax return, they can still file a belated return under Section 139(4).

Key features of belated returns:

• Deadline: 31st December of the assessment year (For example, for FY 2023-24, the deadline is 31st December 2024).
• Penalty for late filing:
  • ₹5,000 if income is above ₹5 lakh
  • ₹1,000 if income is below ₹5 lakh
• Losses cannot be carried forward (except house property loss).

Section 139(5): Revised Returns

Mistakes in an income tax return can happen. To correct errors, Section 139(5) allows taxpayers to file a revised return.

Key Features of Revised Returns:

• Deadline: 31st December of the assessment year.
• No penalty if revised before the deadline.
• Multiple revisions allowed as long as it's before the deadline.
• If the revised return is found incorrect, penalties may apply later.

This section is useful when a taxpayer realizes they have forgotten to include income, claimed incorrect deductions, or made calculation errors.

Section 139(9): Defective Returns

If an income tax return is found incomplete or incorrect, the tax department may consider it "defective" under Section 139(9).

What happens if a return is defective?

• The IT Department sends a notice to the taxpayer.
• The taxpayer must rectify the mistake within 15 days.
• If not rectified, the return is considered invalid, leading to penalties.

Common reasons for defective returns:

• Missing essential details (such as tax audit reports).
• Incorrect income details.
• Mismatch in tax credits and income declaration.

To avoid defective returns, taxpayers should carefully review their ITR before submission.

Due Dates for Filing Returns Under Section 139

Category	Due Date
Individuals, HUFs, Partnership firms (No Audit)	31st July
Businesses requiring audit	31st October
Businesses under Transfer Pricing Regulations	30th November
Revised & Belated Returns	31st December

Filing within these deadlines ensures compliance with tax laws and avoids unnecessary penalties.

Penalty for Late Filing of Income Tax Returns

Filing a return after the due date results in penalties:

Penalty under Section 234F

• ₹5,000 for late filing if income is above ₹5 lakh.
• ₹1,000 for late filing if income is below ₹5 lakh.

Interest under Sections 234A, 234B, and 234C

• Section 234A: Interest if tax is unpaid.
• Section 234B: Interest if advance tax is not paid.
• Section 234C: Interest on shortfall in advance tax installments.

To avoid these penalties, taxpayers should file their returns on time.

Key Takeaways & Best Practices

• Always file returns on time to avoid penalties.
• If errors exist, use Section 139(5) to file a revised return.
• Losses can be carried forward under Section 139(3), but only if filed before the due date.
• If you miss the deadline, file a belated return under Section 139(4).
• Check for defective return notices under Section 139(9) and rectify them quickly.