Section 139(1) of the Income Tax Act: An Overview
The Income Tax Act is a crucial legislation that governs the taxation of income earned by individuals and businesses in India. Section 139(1) of the Act is one of the most important provisions, as it sets out the rules for filing income tax returns. In this blog, we will delve into the key aspects of section 139(1) and its implications for taxpayers.
What is Section 139(1) of the Income Tax Act?
Section 139(1) of the Income Tax Act states that every person whose total income during the previous year exceeds the basic exemption limit must file an income tax return. The basic exemption limit refers to the minimum income level below which no tax is payable. For the financial year 2022-23, the basic exemption limit for individuals below 60 years of age is Rs. 2.5 lakhs, while for senior citizens (aged 60-80 years) and super senior citizens (above 80 years), it is Rs. 3 lakhs and Rs. 5 lakhs, respectively.
Who is Covered Under Section 139(1)?
Section 139(1) covers all individuals, Hindu Undivided Families (HUFs), companies, firms, and other entities that earn taxable income in India. It is important to note that even if an individual’s income is below the basic exemption limit, they may still have to file an income tax return if they have certain types of income, such as income from capital gains or foreign sources.
When Should You File Your Income Tax Return?
The due date for filing income tax returns varies depending on the type of taxpayer and the nature of their income. For individuals and HUFs who are not required to get their accounts audited, the due date is usually 31st July of the assessment year. For other taxpayers, such as companies and firms, the due date is 30th September of the assessment year.
Consequences of Non-Filing or Late Filing of Income Tax Return
Non-filing or late filing of income tax returns can attract penalties and other legal consequences. For instance, if an individual fails to file their income tax return within the due date, they may have to pay a penalty of up to Rs. 10,000. Additionally, the Income Tax Department may initiate prosecution proceedings against the taxpayer for non-compliance with the provisions of the Act.
Types of Income Tax Returns
Under section 139(1), taxpayers are required to file their income tax returns in the prescribed form. The form to be used for filing the return depends on the type of income earned by the taxpayer during the financial year. For instance, individuals who earn income from salary, house property, and other sources such as interest and dividends are required to file Form ITR-1 or ITR-2. However, individuals who have capital gains or business income must file Form ITR-3, ITR-4, or ITR-5, depending on the nature of their income.
Revision of Income Tax Returns
If a taxpayer discovers any error or omission in the income tax return filed earlier, they can file a revised return under section 139(5) of the Income Tax Act. A revised return can be filed within a specified time limit, which is usually before the end of the assessment year or before the completion of the assessment, whichever is earlier.
Penalties for Non-Filing or Late Filing of Income Tax Returns
As mentioned earlier, non-filing or late filing of income tax returns can attract penalties under the Income Tax Act. The penalty for non-filing of income tax returns is Rs. 5,000, while the penalty for late filing of income tax returns is Rs. 1,000 per day for a maximum of 100 days. However, the penalty for late filing of income tax returns is reduced to Rs. 5000 if the return is filed by 31st December of the assessment year.
Conclusion
Section 139(1) of the Income Tax Act is a critical provision that outlines the rules for filing income tax returns in India. Taxpayers must comply with the provisions of the Act to avoid penalties and other legal consequences. Additionally, it is important to file accurate and timely returns to ensure compliance with the Income Tax Act and to avoid unnecessary scrutiny from the Income Tax Department.
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Frequently Asked Questions (FAQs)
Q:1 Who is required to file an income tax return under Section 139(1)? A: Every person whose total income during the previous year exceeds the basic exemption limit is required to file an income tax return under Section 139(1) of the Income Tax Act.
Q:2 What is the due date for filing an income tax return under Section 139(1)? A: The due date for filing an income tax return under Section 139(1) varies depending on the type of taxpayer and the nature of their income. For individuals and HUFs who are not required to get their accounts audited, the due date is usually 31st July of the assessment year. For other taxpayers, such as companies and firms, the due date is 30th September of the assessment year.
Q:3 What are the consequences of non-filing or late filing of an income tax return under Section 139(1)? A: Non-filing or late filing of an income tax return under Section 139(1) can attract penalties and other legal consequences. For instance, if an individual fails to file their income tax return within the due date, they may have to pay a penalty of up to Rs. 10,000. Additionally, the Income Tax Department may initiate prosecution proceedings against the taxpayer for non-compliance with the provisions of the Act.
Q:4 Can a taxpayer file a revised return under Section 139(1)? A: Yes, if a taxpayer discovers any error or omission in the income tax return filed earlier, they can file a revised return under Section 139(5) of the Income Tax Act.
Q:5 What is the penalty for non-filing or late filing of an income tax return under Section 139(1)? A: The penalty for non-filing of an income tax return is Rs. 5,000, while the penalty for late filing of an income tax return is Rs. 1,000 per day for a maximum of 100 days. However, the penalty for late filing of income tax returns is reduced to Rs. 5000 if the return is filed by 31st December of the assessment year.
Q:6 What is the basic exemption limit under Section 139(1)? A: The basic exemption limit under Section 139(1) refers to the minimum income level below which no tax is payable. For the financial year 2022-23, the basic exemption limit for individuals below 60 years of age is Rs. 2.5 lakhs, while for senior citizens (aged 60-80 years) and super senior citizens (above 80 years), it is Rs. 3 lakhs and Rs. 5 lakhs, respectively.
