The Indian Income Tax Act, of 1961, is a comprehensive law that governs the taxation of income earned by individuals, companies, and other entities in India. Under this act, taxpayers are required to file their income tax returns (ITR) every year by the specified due date. However, in case a taxpayer fails to file their ITR by the due date, they can still file a belated return under Section 139(4) of the Income Tax Act. This article aims to provide an in-depth understanding of Section 139(4) of the Income Tax Act, including its provisions, eligibility criteria, and consequences of non-filing or late filing.
Provisions of Section 139(4)
Section 139(4) of the Income Tax Act provides taxpayers with the option to file a belated return if they have missed the due date for filing their original ITR. The belated return can be filed at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier. For instance, if the due date for filing the ITR for the financial year 2021-22 is July 31, 2022, the taxpayer can file a belated return for the same financial year before March 31, 2024.
Eligibility Criteria for Filing Belated Returns: Not all taxpayers are eligible to file belated returns under Section 139(4) of the Income Tax Act. The eligibility criteria are as follows:
- Individual taxpayers with income above the basic exemption limit: Any individual taxpayer who has a total income exceeding the basic exemption limit of Rs 2.5 lakhs (for FY 2021-22) is required to file an ITR. If they miss the due date, they can file a belated return under Section 139(4).
- Companies and firms: All companies and firms, irrespective of their income, are required to file an ITR within the specified due date. If they miss the due date, they can file a belated return under Section 139(4).
- Non-resident taxpayers: Non-resident taxpayers who have earned any income in India during the financial year are required to file an ITR. If they miss the due date, they can file a belated return under Section 139(4).
Know Other Difference:
Consequences of Non-Filing or Late-Filing:
Non-filing or late filing of ITR can have severe consequences for taxpayers. The following are the consequences of non-filing or late-filing of ITR:
- Penalty: If a taxpayer fails to file their ITR within the due date, they are liable to pay a penalty of Rs 5,000 under Section 234F of the Income Tax Act. The penalty amount increases to Rs 10,000 if the ITR is filed after December 31 of the relevant assessment year.
- Interest: If a taxpayer files their ITR after the due date, they are liable to pay interest on the outstanding tax amount. The interest rate is 1% per month or part of the month for the period of delay.
- Loss of certain benefits: If a taxpayer fails to file their ITR within the due date, they may lose certain benefits such as carrying forward losses, claiming deductions under Section 80, and claiming refunds.
- Prosecution: In case of willful non-filing or late-filing of ITR, a taxpayer can face prosecution under Section 276CC of the Income Tax Act. The punishment for such an offense can be imprisonment for a term of 3 months to 2 years and a fine.
Final Conclusion:
In conclusion, Section 139(4) of the Income Tax Act provides taxpayers with an opportunity to file belated tax returns even after the due date has passed. The provision allows taxpayers to file their returns within a specified time limit, which is usually one year from the end of the relevant assessment year.
However, there are certain conditions and consequences associated with filing belated returns under this provision, including the possibility of being subject to penalties and interest.
It is important for taxpayers to be aware of the provisions of Section 139(4) and to file their tax returns within the prescribed time limit to avoid any penalties and interest. Furthermore, it is advisable to seek professional guidance if you have missed the due date for filing your tax returns to ensure that you comply with the provisions of the Income Tax Act and avoid any potential legal consequences.
Overall, understanding the provisions of Section 139(4) of the Income Tax Act is essential for all taxpayers to ensure timely compliance with the tax laws and avoid any adverse repercussions.
Q: What is Section 139(4) of the Income Tax Act?
A: Section 139(4) of the Income Tax Act allows taxpayers to file a belated return of income tax after the due date has passed.
Q: What is a belated return?
A: A belated return is an income tax return filed after the due date specified under the Income Tax Act.
Q: What is the due date for filing an income tax return?
A: The due date for filing an income tax return is generally July 31st of the assessment year for individuals and September 30th of the assessment year for businesses.
Q: Can I file a belated return for any assessment year?
A: No, a belated return can only be filed for the assessment year immediately following the financial year for which the return was due.
Q: Is there a penalty for filing a belated return?
A: Yes, a penalty may be levied under Section 234F of the Income Tax Act for filing a belated return. The penalty can range from Rs. 1,000 to Rs. 10,000 depending on the delay in filing the return.
Q: Can the penalty for filing a belated return be waived?
A: The penalty for filing a belated return may be waived off in certain cases. For example, if the total income of the taxpayer does not exceed Rs. 5 lacks, the penalty amount will not exceed Rs. 1,000.
Q: Can I claim a refund for a belated return?
A: Yes, you can claim a refund for a belated return, provided that you are eligible for a refund and have filed the return within the prescribed time limit.
Q: Can I revise a belated return?
A: No, you cannot revise a belated return. However, if you have filed a belated return, you can still file a revised return within the prescribed time limit.
Q: Is it advisable to file a belated return?
A: It is always advisable to file your income tax return within the due date to avoid any penalty or legal consequences. However, if you have missed the due date, it is better to file a belated return instead of not filing a return at all.
