Section 139 of the Income Tax Act

• Section 139 of the Indian Tax Act (ITA) is related to the filing of income tax.
• As per Section 139 of the ITA, any entity with a total income exceeding the non-taxable threshold must file an Income Tax Return (ITR) for the previous year.
• If you own a firm or a company, it is mandatory to file your ITR regardless of profit or loss.

Learning how to file your Income Tax Return (ITR) is necessary when it comes to understanding the management of finances. To gain a deeper understanding of filing your taxes, you must
understand Section 139 of the Indian Tax Act (ITA).After learning about Section 139 of the Indian Tax Act (ITA), you will be more confident while filing your income tax and managing your finances in general. Whether you want to file taxes for yourself or for the business that you own, having sufficient knowledge about Section 139 is a must.

Any person, business, or organisation whose total income is above the non-taxable threshold is required by Section 139 to file an ITR for the prior year.A statutory deadline for electronically filing income taxes is also established. Taxpayers should submit their returns on time. In some cases, they can file late until the end of the assessment year or before the assessment.

Section 139(1): Submission of Income Tax Returns

Now that you are aware of what Section 139 is, we can now look at the specifics of the subsections of Section 139. Subsection 139(1) deals with the mandatory and voluntary returns of the ITR. 1. Voluntary Returns Entities or individual taxpayers who are not required by law to file income tax returns but voluntarily do so in accordance with the Income Tax Act's requirements are the subject of voluntary returns. 2. Mandatory Returns The mandatory requirements for filing income tax returns are covered in Section 139(1) of the ITA as well. The following organisations/individuals must submit their tax returns:

• Any person whose total income is above the exemption threshold is required to file their income tax return by the deadline.
• Any organisation that operates in India or conducts business there, whether it be public, private, domestic, or foreign.
• Limited Liability Partnerships (LLP) and Unlimited Liability Partnerships (ULP) are among the businesses covered by this rule.
• Residents with assets outside of India or organisations with control over accounts outside of India.
• If their income exceeds the specified exemption level, Hindu Undivided Families (HUFs) , Associations of Persons (AOPs), and Bodies of Individuals (BOIs) are required to file an income tax return.

Certain groups of people who fulfil specific requirements are released from the requirement to file tax returns under Section 139(1c).Both Houses of Parliament must be notified of these exemptions within 30 days of the start of their respective sessions. The notification won't go into effect until both houses agree.

Section 139(3) - Filing ITR During Loss

If a company or an individual taxpayer experienced a financial loss in the previous year, this subsection addresses the filing of an ITR. In the following situations, taxpayers must file an income tax return that reflects the loss:

• An individual or business must file an ITR if they incur a loss that falls within the "Capital Gains" or "Profits and Gains of Business and Professions" categories, and plan to deduct the loss from future income.
• Even if someone files an ITR after the deadline, they are still able to carry forward any losses they suffer under "House or Residential Property".
• After e-filing income taxes, an individual may choose to offset the loss with income from another source during the same fiscal year.

Section 139(4) Delayed Submission of Income Tax Returns

A person may file their ITR at any time before three months before the end of the assessment year or before the assessment procedure is completed, according to Section 139(4).According to Section 234F, taxpayers who submit their ITR beyond the deadline risk a ₹5,000 penalty. However, if the assessee's total income is less than ₹5 lakh, the penalty would not be more than ₹1,000.Tax returns that are not required by Section 139(1) are exempt from penalties. Also Read: What is Tax? Meaning, Types, Features & Benefits Explained

Section 139(5): Revised Return

If there were mistakes made in the original filing, this section covers how to file amended income tax returns. Among the clauses in this section are:A revised tax return may be filed within a year after the end of the relevant assessment year or before the assessment's completion, whichever occurs first if the taxpayer or an entity filed the initial or original income tax returns in accordance with Section 139(1) of the Income Tax Act.Revisions are not available for late tax returns. On the other hand, any return that was submitted within the deadline specified in Section 139(1) may be modified.

Section 139 (9): Defective Returns

Defective returns with particular defects listed in Section 139(9) are covered under this clause.The Assessing Officer (AO) has the authority to inform the taxpayer and allow them to correct any errors found in an ITR. AOs typically give a 15-day opportunity for correction, though an extension may be granted with a good cause.

Ways to Submit ITR

There are various ways to submit your ITR:

• Paper Form: You can submit a physical form of the ITR directly.
• E-Form: You can submit an E-form and approve it through a digital signature.
• Barcode: You can use the barcode return submission code.

Section 139 of the Indian Income Tax Act is fundamental to understanding income tax return filing requirements. It outlines who must file, the different types of returns, and the implications of late filing. Adhering to the provisions of Section 139 is crucial for all taxpayers, from individuals to businesses, to ensure compliance with Indian tax laws and avoid penalties.Understanding these regulations empowers taxpayers to manage their financial obligations effectively and maintain accurate tax records. What is Income Tax in India? Details You Should Know Also Read: