Section 139(5) of the Income Tax Act 1961 is an important provision that deals with the filing of income tax returns. It lays down the guidelines for taxpayers who have missed the deadline for filing their returns or need to revise their returns. In this blog, we will discuss Section 139(5) in detail, including its provisions, applicability, and consequences of non-compliance.
What is Section 139(5)?
Section 139(5) of the Income Tax Act 1961 provides for the filing of a belated or revised income tax return. Under this provision, taxpayers who have missed the original due date for filing their returns or need to make changes to their already filed returns can do so by filing a belated or revised return.
Provisions of Section 139(5)
The following are the key provisions of Section 139(5):
- Belated Return: A belated return is a return filed after the original due date for filing the return has passed. As per the Income Tax Act, the due date for filing an income tax return for most taxpayers is July 31st of the assessment year. Therefore, a return filed after July 31st is considered a belated return.
- Revised Return: A revised return is a return filed by a taxpayer who has already filed a return but wants to make changes to the same. A revised return can be filed anytime before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
- Interest and Penalty: A belated return or a revised return is subject to interest and penalty provisions. If a taxpayer files a belated return, he/she will be liable to pay interest under Section 234A of the Income Tax Act at the rate of 1% per month or part of a month, calculated from the due date of filing the return till the date of actual filing. Additionally, a penalty of Rs. 5,000 can be levied under Section 271F of the Income Tax Act for filing a belated return after December 31st of the assessment year.
Applicability of Section 139(5)
The provisions of Section 139(5) apply to all taxpayers who have missed the original due date for filing their returns or need to revise their already filed returns. However, there are certain exceptions to this provision. Section 139(4) of the Income Tax Act provides that a taxpayer who has not filed a return for a particular assessment year can file a return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
Consequences of Non-compliance
Non-compliance with the provisions of Section 139(5) can have several consequences for taxpayers. Firstly, a belated return or a revised return filed after the due date attracts interest and penalties as mentioned above. Secondly, a taxpayer who does not file his/her return within the stipulated time may be subjected to a notice under Section 142(1) of the Income Tax Act, which requires him/her to furnish the return within a specified time. Failure to comply with the notice may result in penalties and prosecution under the Income Tax Act.
The provision of Section 139(5) of the Income Tax Act 1961 has been introduced to provide relief to taxpayers who miss the original due date for filing their income tax returns. It recognizes that there may be various reasons why a taxpayer may not be able to file his/her return on time, such as genuine hardships, medical emergencies, or technical glitches. However, the provision also seeks to ensure that taxpayers do not misuse this facility to evade taxes or delay their tax compliance obligations.
One important thing to note is that a belated return or a revised return can only be filed if the original return has not been processed by the Income Tax Department. Once the original return has been processed, it cannot be revised or amended. Therefore, taxpayers must ensure that they file their returns correctly and in a timely manner to avoid any errors or omissions that may require them to file a revised return later.
Another important aspect of Section 139(5) is that it provides for penalties and interest for non-compliance. This is to ensure that taxpayers do not take the provisions of this section lightly and make an effort to file their returns within the stipulated time. The interest and penalties levied are meant to deter taxpayers from delaying their tax compliance obligations and to compensate the government for any loss of revenue due to such delays.
In recent years, the Income Tax Department has introduced several measures to simplify and streamline the process of filing income tax returns. One such measure is the e-filing of income tax returns, which has made it easier for taxpayers to file their returns online from the comfort of their homes or offices. The e-filing facility also provides taxpayers with various tools and resources to help them file their returns correctly and in a timely manner.
The Income Tax Department has also introduced a system of pre-filled income tax returns, which is aimed at reducing the time and effort required by taxpayers to file their returns. Under this system, taxpayers’ income and tax details are pre-filled in their tax returns based on the information available with the Income Tax Department. Taxpayers can then review and verify the details before submitting their returns, which reduces the chances of errors or omissions.
However, despite these efforts, there are still several taxpayers who miss the original due date for filing their returns or need to make changes to their already filed returns. In such cases, Section 139(5) of the Income Tax Act 1961 provides them with an opportunity to file a belated or revised return. This provision is particularly beneficial for taxpayers who may have missed the due date due to genuine hardships or technical glitches.
Conclusion
Section 139(5) of the Income Tax Act 1961 provides taxpayers with an opportunity to file a belated or revised return in case they miss the original due date or need to make changes to their already filed returns. However, taxpayers must ensure that they file their returns within the stipulated time and pay the interest and penalties as applicable to avoid any legal consequences.
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)
What is Section 139(5) of the Income Tax Act 1961?
Section 139(5) of the Income Tax Act 1961 provides taxpayers with an opportunity to file their income tax returns even if they miss the original due date or need to make changes to their already filed returns.
What is the due date for filing an income tax return?
The due date for filing an income tax return is July 31st of the assessment year for individuals and HUFs (Hindu Undivided Families). For companies and firms, the due date is September 30th of the assessment year.
Can a belated return be filed after the due date?
Yes, a belated return can be filed after the due date, but only up to the end of the assessment year or before the completion of the assessment, whichever is earlier.
Is there any penalty for filing a belated return?
Yes, there is a penalty for filing a belated return. If the return is filed after the due date but before December 31st of the assessment year, a penalty of Rs. 5,000 will be levied. If the return is filed after December 31st, a penalty of Rs. 10,000 will be levied.
Can a revised return be filed after filing the original return?
Yes, a revised return can be filed after filing the original return if the taxpayer discovers any errors or omissions in the original return. However, the revised return can only be filed within the prescribed time limit.
Can a revised return be filed after the due date?
No, a revised return cannot be filed after the due date. It can only be filed within the prescribed time limit.
Is it mandatory to file a revised return?
No, it is not mandatory to file a revised return. A revised return can be filed only if the taxpayer discovers any errors or omissions in the original return.
What is the time limit for filing a revised return?
The time limit for filing a revised return is the end of the assessment year or before the completion of the assessment, whichever is earlier.
Can a taxpayer claim a refund while filing a belated return?
Yes, a taxpayer can claim a refund while filing a belated return if he/she is eligible for a refund.
Can a taxpayer revise a belated return?
No, a belated return cannot be revised. Once a belated return is filed, it is considered final and cannot be revised or amended.
