Section 139 of Income Tax Act: Meaning, details and subsections

Section 139 of Income Tax Act covers several provisions regarding the late filing of various income tax returns, i.e. after the given deadline. Section 139 also includes instructions to help individual or non-individual assesses who have yet to file tax returns by the deadline to file delayed returns.

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The non-submission of tax returns by various types of tax assessment within the specified time frame is addressed by the several sub-sections of Section 139.

know about: 139 5 of income tax act

Section 139 of Income Tax Act: What is it?

If any taxpayer fails to file their income tax returns by the deadline, Section 139 of the Income Tax Act gives instructions on how to proceed. Section 139 contains several subsections that are intended to address the non-submission of ITR within the allotted period by various tax assessors.

Section 139 of Income Tax Act: Understanding the subsections

1. Section 139(1)

The mandatory and optional filing of income tax returns is covered in this subsection. The situations where ITR filing is required are listed below.

Anyone whose total income exceeds the threshold for income tax exemption is required to file an ITR by the deadline.

Any public, private, national, or foreign entity based in India or conducting business there.

Any business, excluding Limited Liability Partnerships or Partnerships with Unlimited Liability (LLP).

If a resident of India owns property outside of India or has signing authority over an account with a foreign bank, regardless of the amount of the tax burden on such incomes, submitting an income tax return in the required format is required.

If a HUF, AOP, or BOI’s total income exceeds the established threshold, they are all required to file income tax returns with the necessary supporting documents.

In several circumstances, people or organisations are exempt from the requirement to file an ITR. In such cases, their tax filings are regarded as voluntary returns and are taken into account when determining tax liability.

2. Section 139(3)

This section discusses filing income taxes in the event of a loss. It is not necessary to file a tax return if an individual taxpayer lost money in the prior fiscal year.

A business or organisation must file a tax return for losses. The following rules apply to the same:

ITR filing is required if the loss falls under the headings “Profits and Gains of Business and Profession” or “Capital Gains.” This is in case a business decides to carry over the loss and make up the difference with subsequent earnings.

Only if the Income Tax Return is filed by the deadline will this option be available.

If the loss happened under the heading “House or Residential Property,” it may be carried forward even though the ITR was submitted after the deadline.

Other losses except for loss under “House Property“ cannot be carried forward if the loss is reported for returns under Section 142(1). Non-offset depreciation can, however, be carried forward under these circumstances.

The offset is still permitted even after the return is filed after the due date, provided you apply the loss against another category of income in the same year.

If the returns of such losses were filed and those losses were assessed for the years, then it is also possible to carry forward losses from previous years.

Since filing a return of loss enables you to carry the loss forward and lowers your future tax liability, you should do so at all times.

3. Section 139(4)

A taxpayer must file the Income Tax Return, whether an individual or an entity, by the due date indicated in Section 139(1) or within the time specified by a notification issued under Section 142. (1). Any taxpayer that fails to do so may still submit a late ITR up until the expiration of a year that began before the assessment’s conclusion or from the end of the applicable year of assessment, whichever comes first. However, if the return is submitted after the relevant assessment year, a taxpayer may be assessed a Rs 5,000 penalty under Section 271F.

4. Section 139(5)

Revised returns are covered by this clause of Section 139 of the Income Tax Act. If the ITR was submitted by the deadline, but the taxpayer later discovers that there was an error or omission, Section 139 provides for the submission of a revised return of income tax to fix the errors (5). A late return, however, falls outside the purview of this provision and cannot be changed.

A revised return may be filed at any time within a year following the conclusion of or before the assessment is finished, whichever comes first. The frequency of tax return revisions is not constrained within the allotted time. The original ITR form or a different return form may be used for this revision. The updated return should be approved when the new ITR filing is completed under Section 139(5), and the previous return submitted under Section 139(1) shall be regarded as withdrawn.

Only accidental errors are allowed to be changed on a return. Section 139(5) only applies to “Omissions and Wrong Statements”; it is not intended to cover “Concealment or False Statements.” If a taxpayer makes an intentional error or omission or files a false tax return, they could be fined.

5. Section 139(4a)

The ITR of charitable or religious trusts is addressed in this section of Section 139 of the Income Tax Act. According to Section 139(4a), any person who receives income from property held under a trust or other legal obligation must file an income tax return. It may be entirely or partially for religious or philanthropic reasons, or the income may be a voluntary contribution.

Suppose the total income is greater than the maximum allowable amount that is not exempt from income tax after applying Sections 11 and 12’s requirements. The voluntary contribution should be described in Subsection 2(24)(iia).

6. Section 139(4b)

The submission of ITR on income by political parties is addressed in Section 139(4b). According to the aforementioned clause, political parties must submit an ITR if their total revenue exceeds the maximum amount allowed for income tax exemptions. The consequences of Section 13 provisions are not taken into account when calculating the total revenue for this particular purpose (A). All political parties must provide this ITR, as appropriate, through their CEO or secretary.

7. Section 139(4c) and Section 139(4d)

The ITR of specific organisations obtaining income tax benefits under Section 10 of the IT Act, 1961, is addressed in these subsections of Section 139. ITRs are institutions that are legally compelled to file tax returns under Section 139(4c) if the amount they have accumulated exceeds the maximum amount of tax exemption. Other exemption benefits that the institution receives are not included in this. According to Section 139(4c), an ITR must be submitted by:

Every association engaged in scientific research

Institutions or associations prescribed under Section 10(23A)

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Institutions mentioned under Section 10(23B)

University, institutions, other educational and medical institutions, hospitals

Institutions covered by Section 139(4c) seek to request tax exemptions under Section 10’s provisions. The clauses are numbers 24, 46, 47, 21, 22, 22B, 23A, 23C, 23D, 23DA, and 23FB.

On the other hand, all universities and institutions that do not have to file ITR and loss must submit a return under Section 139(4d). Both Section 35(1)(ii) and Section 35(1) are covered by Section 139(4d) (iii).

8. Section 139(4f)

Every investment fund included in Section 115UB that is not required to report income or losses under the other requirements of this section is required to file an ITR for the previous year’s income or losses. To the extent possible, the provisions of this act shall be applied as if the document were a return that needed to be filed under sub-section(1).

9. Section 139(9)

The faulty income tax returns are covered in this section. A tax return is deemed to be defective under Section 139(9) if it was filed without a specific document. If the tax officer finds a problem with the return, they will notify the taxpayer and provide them with the opportunity to fix it. Within 15 days, beginning on the day of notification, this must be completed. The time frame provided may also be extended upon application by the taxpayer. The assessing officer informs the taxpayer of the error with a straightforward letter. The following list of records can help you keep your ITR from being ruled invalid:

A properly completed tax return in the recommended format.

An accounting statement of the taxes due.

Proof of all tax payments, as claimed. Examples include documentation of income tax deduction and collection at source, as well as self-assessment and advance tax payments.

A report for the audit conducted under Section 44AB, when the report is provided before submitting the ITR.

If a taxpayer keeps books of account, the following copies are needed by law:

The balance sheet, income & expense account, accounting for profit and loss, manufacturing, and trading.
Personal A/Cs of partners are used in partnership firms.
Personal accounts of the AOP/BOI members.
Personal account for proprietors.
Copies of the audit report and audited profit and loss account, and balance sheet must be provided if a taxpayer has the account audited.
The pertinent report in a cost audit scenario.
A statement listing the net profit, bank balance, stocks, cash, debtors, gross receipts, creditors information, turnover amount, expenses, etc., is required if the taxpayer has not kept books.

know about: Section 142(1)

FAQs

Can I submit a late ITR?

According to section 139(4), a person may submit a late return if they fail to submit their income tax return within the time frame specified in this regard. A late return may be submitted up to three months before the end of the applicable assessment year or before the assessment is finished, whichever comes first.

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