Section 139(4b) of the Income Tax Act is an important provision that deals with the filing of income tax returns by taxpayers who have received income from a business or profession. In this blog, we will provide an overview of this provision and explain how it affects taxpayers.
What is Section 139(4b)?
Section 139(4b) of the Income Tax Act mandates taxpayers who have income from a business or profession to file their income tax returns by the specified due date. The due date for filing income tax returns for such taxpayers is generally July 31st of the assessment year. However, if the taxpayer is required to get their accounts audited under Section 44AB of the Income Tax Act, then the due date is September 30th of the assessment year.
Who is affected by Section 139(4b)?
Section 139(4b) affects taxpayers who have income from a business or profession. This includes individuals, Hindu Undivided Families (HUFs), and partnership firms. If such taxpayers fail to file their income tax returns by the due date, they may be subject to penalties and interest under the Income Tax Act.
What are the consequences of non-compliance with Section 139(4b)?
If a taxpayer who has income from a business or profession fails to file their income tax returns by the due date, they may be subject to penalties and interest under the Income Tax Act. The penalty for late filing of income tax returns is Rs. 5,000 if the return is filed after the due date but before December 31st of the assessment year. If the return is filed after December 31st but before March 31st of the assessment year, the penalty is Rs. 10,000. For returns filed after March 31st of the assessment year, the penalty is Rs. 10,000 or 1% of the total income, whichever is lower.
In addition to the penalty, taxpayers may also be liable to pay interest under Section 234A of the Income Tax Act. The interest is calculated at the rate of 1% per month or part thereof on the tax amount due.
How can taxpayers ensure compliance with Section 139(4b)?
To ensure compliance with Section 139(4b), taxpayers who have income from a business or profession should ensure that they file their income tax returns by the due date. They should also ensure that their accounts are audited under Section 44AB of the Income Tax Act, if required.
Taxpayers may also seek the assistance of a tax professional to ensure compliance with the provisions of the Income Tax Act. Tax professionals can help taxpayers with the preparation and filing of their income tax returns, as well as provide guidance on the various provisions of the Income Tax Act.
Conclusion
Section 139(4b) of the Income Tax Act is an important provision that affects taxpayers who have income from a business or profession. Taxpayers who fall under this category should ensure that they file their income tax returns by the specified due date to avoid penalties and interest under the Income Tax Act. Seeking the assistance of a tax professional can also help taxpayers ensure compliance with the various provisions of the Income Tax Act.
Read more useful content:
- section 234e of income tax act
- section 286 of income tax act
- section 90a of income tax act
- section 40a(7) of income tax act
- section 226(3) of income tax act
- section 24 of income tax act
Frequently Asked Questions (FAQs)
Q: Who is required to file income tax returns under Section 139(4b)?
A: Taxpayers who have income from a business or profession are required to file income tax returns under Section 139(4b). This includes individuals, Hindu Undivided Families (HUFs), and partnership firms.
Q: What is the due date for filing income tax returns under Section 139(4b)?
A: The due date for filing income tax returns under Section 139(4b) is generally July 31st of the assessment year. However, if the taxpayer is required to get their accounts audited under Section 44AB of the Income Tax Act, then the due date is September 30th of the assessment year.
Q: What are the consequences of not filing income tax returns under Section 139(4b)?
A: Taxpayers who fail to file their income tax returns by the due date may be subject to penalties and interest under the Income Tax Act. The penalty for late filing of income tax returns is Rs. 5,000 if the return is filed after the due date but before December 31st of the assessment year. If the return is filed after December 31st but before March 31st of the assessment year, the penalty is Rs. 10,000. For returns filed after March 31st of the assessment year, the penalty is Rs. 10,000 or 1% of the total income, whichever is lower. Taxpayers may also be liable to pay interest under Section 234A of the Income Tax Act.
Q: What is the requirement for getting accounts audited under Section 44AB of the Income Tax Act?
A: Taxpayers who have a turnover of more than Rs. 1 crore in a financial year are required to get their accounts audited under Section 44AB of the Income Tax Act. Similarly, taxpayers who have a gross receipts or turnover of more than Rs. 50 lakhs in a financial year and are engaged in certain professions are also required to get their accounts audited under Section 44AB.
Q: Can a taxpayer revise their income tax return filed under Section 139(4b)?
A: Yes, a taxpayer can revise their income tax return filed under Section 139(4b) within the prescribed time limit. The time limit for revising the income tax return is generally before the end of the relevant assessment year or before the completion of assessment, whichever is earlier.
Q: Is it mandatory to file income tax returns even if the taxpayer has incurred losses from the business or profession?
A: Yes, it is mandatory for taxpayers who have income from a business or profession to file income tax returns under Section 139(4b), even if they have incurred losses. Filing income tax returns can help taxpayers carry forward their losses and set them off against future profits.
Q: Can a taxpayer who has missed the due date for filing income tax returns file a belated return under Section 139(4b)?
A: Yes, taxpayers who have missed the due date for filing income tax returns under Section 139(4b) can file a belated return. However, they may be subject to penalties and interest as per the provisions of the Income Tax Act.
