Section 139(5) of the Income Tax Act, of 1961 is an important provision that pertains to the filing of belated returns by taxpayers. As per this provision, a taxpayer who has not filed his/her income tax return by the due date can file a belated return at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
Provisions of Section 139(5)
This provision applies to all categories of taxpayers, including individuals, Hindu Undivided Families (HUFs), firms, companies, and other entities liable to pay income tax in India. However, it is important to note that a belated return can only be filed if the taxpayer has not received a notice from the Income Tax Department for the non-filing of the return.
The due date for filing income tax returns for most taxpayers is July 31 of the relevant assessment year. However, for taxpayers who are required to get their accounts audited or for those who are required to furnish a report under certain provisions of the Income Tax Act, the due date is September 30 of the relevant assessment year.
In case a taxpayer misses the due date for filing the return, he/she can still file a belated return under Section 139(5) of the Income Tax Act. However, there are certain implications of filing a belated return. Firstly, the taxpayer will have to pay a penalty of Rs. 5,000 if the belated return is filed after the due date but before December 31 of the relevant assessment year. If the return is filed after December 31 of the relevant assessment year, the penalty amount increases to Rs. 10,000.
Moreover, if the taxpayer has any outstanding tax liability, interest on the same will be calculated from the due date of filing the return till the date of payment. Hence, it is advisable to file the return on or before the due date to avoid any penalties or interest payments.
It is also important to note that if a taxpayer has missed filing the return for more than one year, he/she cannot file a belated return for the previous year(s). In such cases, the taxpayer will have to file a return under the provisions of Section 139(4) of the Income Tax Act. Under this provision, the taxpayer will have to file a return for the relevant assessment year and also provide a valid reason for the delay in filing the return.
Final Conclusion
In conclusion, Section 139(5) of the Income Tax Act provides relief to taxpayers who miss the due date for filing their income tax return. However, it is important to note that filing a belated return attracts penalties and interest payments. Hence, taxpayers should make sure to file their returns on or before the due date to avoid any such implications.
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Here are some frequently asked questions related to Section 139(5) of the Income Tax Act:
What is Section 139(5) of the Income Tax Act, of 1961?
Section 139(5) of the Income Tax Act, 1961 is a provision that allows taxpayers to file their income tax returns after the due date has passed.
Who can file a belated return under Section 139(5)?
Section 139(5) applies to all categories of taxpayers, including individuals, Hindu Undivided Families (HUFs), firms, companies, and other entities liable to pay income tax in India.
What is the due date for filing income tax returns?
The due date for filing income tax returns for most taxpayers is July 31 of the relevant assessment year. However, for taxpayers who are required to get their accounts audited or for those who are required to furnish a report under certain provisions of the Income Tax Act, the due date is September 30 of the relevant assessment year.
What are the implications of filing a belated return?
Filing a belated return attracts penalties and interest payments. Additionally, if the taxpayer has any outstanding tax liability, interest on the same will be calculated from the due date of filing the return till the date of payment.
What is the penalty for late filing of returns?
If a taxpayer files a belated return after the due date but before December 31 of the relevant assessment year, he/she will have to pay a penalty of Rs. 5,000. If the return is filed after December 31 of the relevant assessment year, the penalty amount increases to Rs. 10,000.
Can a taxpayer file a belated return for multiple years?
No, if a taxpayer has missed filing the return for more than one year, he/she cannot file a belated return for the previous year(s). In such cases, the taxpayer will have to file a return under the provisions of Section 139(4) of the Income Tax Act.
Can a taxpayer revise a belated return?
Yes, a taxpayer can revise a belated return. The time limit for revising a return is the same as that for filing a return within the due date. However, if the return is filed after the due date, the taxpayer will not be able to carry forward losses or claim a refund for the previous year(s).
Can a taxpayer claim deductions while filing a belated return?
Yes, a taxpayer can claim deductions while filing a belated return. However, it is important to note that if the return is filed after the due date, the taxpayer will not be able to carry forward losses or claim a refund for the previous year(s).
Is it mandatory to file a return even if the taxpayer’s income is below the taxable limit?
No, it is not mandatory for taxpayers whose income is below the taxable limit to file a return. However, it is advisable to file a return to claim any refunds due or to carry forward losses for future years.
What happens if a taxpayer fails to file a return?
If a taxpayer fails to file a return, he/she may receive a notice from the Income Tax Department for non-filing of the return. Additionally, the taxpayer may be liable to pay penalties and interest on any outstanding tax liability.
