Section 139(1) – Filing of Income Tax Return (Normal Due Date)

In India, filing an Income Tax Return (ITR) is a fundamental obligation for most individuals and entities, serving as a declaration of their income, tax calculations, and claims for refunds or deductions. The primary provision governing this mandatory filing is Section 139(1) of the Income Tax Act, 1961, which specifies who must file an ITR and by what due date.

Who is Mandatorily Required to File ITR under Section 139(1)?

1. Individuals and Hindu Undivided Families (HUFs):

An individual or HUF is mandatorily required to file an ITR if their Gross Total Income (GTI) before claiming deductions under Chapter VI-A (like Section 80C, Section 80D, etc.) exceeds the basic exemption limit applicable to them for that financial year.

Example: For the Financial Year (FY) 2024-25, the basic exemption limit for an individual below 60 years of age is ₹2,50,000 (under the old tax regime). If Mr. Sharma's Gross Total Income (before Chapter VI-A deductions) is ₹3,00,000, he is mandatorily required to file his ITR.

Additionally, even if an individual's or HUF's GTI does not exceed the basic exemption limit, they are still required to file an ITR if, during the previous year, they:

• Deposited an amount or aggregate of amounts exceeding ₹1 crore in one or more current accounts maintained with a banking company or a co-operative bank.
• Incurred expenditure of an amount or aggregate of amounts exceeding ₹2 lakh for himself or any other person for travel to a foreign country.
• Incurred expenditure of an amount or aggregate of amounts exceeding ₹1 lakh on electricity consumption.
• Their total sales, gross receipts, or turnover from a business exceeds ₹60 lakh, or from a profession exceeds ₹10 lakh.
• Total TDS and TCS during the year is ₹25,000 or more (₹50,000 or more for senior citizens).
• Aggregate deposit in one or more savings bank accounts is ₹50 lakh or more.

2. Companies and Firms:

Every company and every firm (including Limited Liability Partnerships or LLPs) is mandatorily required to file an ITR for every assessment year, regardless of whether they have earned any income or incurred a loss during the financial year.

3. Other Entities:

Certain other entities are also required to file an ITR, including:

• Every political party.
• Every research association, news agency, university, or other educational institution, hospital, or medical institution referred to in Section 10(23C) (iv), (v), (vi) or (via).
• Every university or other educational institution or hospital or other medical institution referred to in Section 10(23C) (iiiad) or (iiiae).
• Every fund, institution, trust, any university or other educational institution or any hospital or other medical institution referred to in Section 10(23C) (iv), (v), (vi) or (via) or Section 10(23C) (iiiad) or (iiiae).
• Every business trust.
• Every investment fund.
• Every securitization trust.

These entities must file their ITR if their income, before claiming certain exemptions and deductions (e.g., under Section 10 or Chapter III), exceeds the basic exemption limit.

What is Gross Total Income (GTI)?

Gross Total Income refers to the total income of a taxpayer computed under the five heads of income (Salaries, House Property, Profits and Gains from Business or Profession, Capital Gains, and Income from Other Sources) before allowing any deductions under Chapter VI-A (e.g., Section 80C to Section 80U).

Due Dates for Filing ITR under Section 139(1)

The due dates for filing ITR under Section 139(1) depend on the category of the assessee and the nature of their income. These dates are for the relevant Assessment Year (AY), which immediately follows the Financial Year (FY).

• July 31st of the Assessment Year:
  • For individuals, Hindu Undivided Families (HUFs), Association of Persons (AOPs), and Body of Individuals (BOIs) whose accounts are not required to be audited.
  • For a working partner of a firm whose accounts are not required to be audited.

  Example: For the Financial Year 2024-25 (income earned from April 1, 2024, to March 31, 2025), the Assessment Year is 2025-26. The due date for filing ITR for most salaried individuals would be July 31, 2025.

• October 31st of the Assessment Year:
  • For companies.
  • For persons (other than companies) whose accounts are required to be audited under the Income Tax Act or any other law (e.g., businesses with turnover exceeding a certain limit).
  • For a partner of a firm whose accounts are required to be audited.
• November 30th of the Assessment Year:
  • For assessees who are required to furnish a report under Section 92E (in respect of international or specified domestic transactions).

Benefits of Filing ITR by the Due Date:

Filing your ITR by the specified due date offers several advantages:

• Avoid Penalties & Fees: It helps in avoiding late filing fees under Section 234F (up to ₹5,000 for returns filed after due date but before Dec 31st, and ₹10,000 thereafter for higher income, or ₹1,000 for income up to ₹5 lakh) and interest under Section 234A on unpaid tax.
• Carry Forward of Losses: Allows taxpayers to carry forward most types of losses (like business losses, capital losses) to future assessment years, enabling set-off against future income.
• Prompt Refunds: Ensures that any tax refunds due (Section 245) are processed and received promptly.
• Claiming Deductions & Exemptions: All eligible deductions under Chapter VI-A and various exemptions can be claimed.
• Ease of Financial Transactions: A filed ITR is often required for loan applications, visa processing, credit card applications, etc., serving as proof of income and tax compliance.

Consequences of Not Filing / Late Filing:

Failure to file ITR by the due date or not filing at all can lead to several adverse consequences:

• Late Filing Fees (Section 234F): As mentioned above, a fee is levied for belated returns.
• Interest on Unpaid Tax (Section 234A): Interest at 1% per month or part thereof is charged on the unpaid tax amount from the due date until the actual date of filing.
• Loss of Carry Forward of Losses: Most losses (except unabsorbed depreciation and loss from house property) cannot be carried forward to subsequent years if the return is not filed by the due date (or by the due date for belated returns under Section 139(4)).
• Loss of Certain Deductions/Exemptions: Some deductions or exemptions may not be available if the return is filed belatedly.
• Delayed Refunds: Processing of refunds is delayed, and the taxpayer might also lose interest on the refund amount.
• Penalties & Prosecution: In severe cases of non-compliance, particularly for significant tax evasion, the taxpayer may face rigorous penalties and even prosecution.
• Notice from IT Department: The department may issue a notice under Section 142(1) requiring the taxpayer to file the return.

Types of ITR Forms and How to File

The Income Tax Department prescribes different ITR forms (ITR-1 to ITR-7) based on the taxpayer's category and the sources of their income. Taxpayers can file their ITR online through the Income Tax Department's e-filing portal, which has become the most common and convenient method.

Interplay with Other Sections

While Section 139(1) deals with mandatory filing by the normal due date, the Income Tax Act also provides for situations where returns can be filed after the due date:

• Section 139(4) - Belated Return: Allows filing of returns after the normal due date but before December 31st of the assessment year. However, it comes with late fees and restrictions on carrying forward losses.
• Section 139(5) - Revised Return: Allows taxpayers to revise an original or belated return if any omission or wrong statement is discovered.
• Section 139(8A) - Updated Return: Introduced recently, allows taxpayers to file an updated return within 24 months from the end of the relevant assessment year, typically with additional tax.