Section 140 of the Income Tax Act, 1961 is an important provision that deals with the filing of returns of income by taxpayers. In this blog post, we will discuss the various provisions of Section 140, its applicability, and the consequences of non-compliance.
What is Section 140 of the Income Tax Act?
Section 140 of the Income Tax Act deals with the filing of returns of income by taxpayers. As per this section, every person whose total income exceeds the maximum amount not chargeable to tax shall file a return of income in the prescribed form and manner. This means that any person whose total income exceeds the basic exemption limit, which is currently Rs. 2.5 lakhs for individuals and HUFs, Rs. 3 lakhs for senior citizens, and Rs. 5 lakhs for super senior citizens, is required to file an income tax return.
Who is required to file a return of income?
As per Section 139(1) of the Income Tax Act, the following persons are required to file an income tax return:
- Every company or firm, irrespective of whether it has made a profit or loss during the financial year.
- Every person other than a company or firm, if his/her total income exceeds the maximum amount not chargeable to tax.
- Every person who is required to furnish a return of income under any other provision of the Income Tax Act, such as Section 139(4A), 139(4B), 139(4C), and 139(4D).
Consequences of non-compliance
Non-compliance with the provisions of Section 140 can lead to various consequences, such as:
- Penalty for late filing: If a person fails to file the income tax return within the due date, a penalty of Rs. 5,000 may be levied under Section 234F of the Income Tax Act. This penalty may increase to Rs. 10,000 if the return is filed after 31st December of the relevant assessment year.
- Interest on late payment of tax: If a person fails to pay the tax due on the income tax return within the due date, interest may be charged at the rate of 1% per month or part of a month under Section 234A of the Income Tax Act.
- Prosecution for willful default: If a person willfully fails to furnish the return of income, he/she may be liable for prosecution under Section 276CC of the Income Tax Act, which may result in imprisonment for a term of 3 months to 7 years and a fine.
- Loss of certain benefits: Non-filing of income tax return may result in the loss of certain benefits, such as carry forward and set-off of losses, claiming of deductions, etc.
Due Date for Filing Income Tax Returns
The due date for filing income tax returns is generally July 31st of the assessment year (AY), which is the year immediately following the financial year for which the return is being filed. However, for AY 2022-23, the due date for filing income tax returns for individuals and HUFs who are not required to get their accounts audited has been extended to December 31, 2022.
In case of taxpayers who are required to get their accounts audited, such as companies and partnerships, the due date for filing income tax returns is September 30th of the assessment year.
Modes of Filing Income Tax Returns
Income tax returns can be filed either online or offline. Online filing of income tax returns is more convenient, faster, and easier. The Income Tax Department provides two online modes for filing income tax returns:
- E-filing: This can be done by visiting the Income Tax Department’s e-filing portal, logging in with the user ID and password, and uploading the relevant documents and income tax return.
- E-Verification: After filing the income tax return online, taxpayers can verify their returns electronically by using Aadhaar-based OTP, net banking, bank account-based validation, or by sending a physical ITR-V to the Income Tax Department’s CPC in Bangalore.
For taxpayers who prefer offline filing of income tax returns, the form can be downloaded from the Income Tax Department’s website, filled manually, and submitted physically to the Income Tax Department.
Revised Return
In case a taxpayer discovers any errors or omissions in the originally filed income tax return, he/she can file a revised return under Section 139(5) of the Income Tax Act within a prescribed time limit. The revised return can be filed within one year from the end of the relevant assessment year or before the completion of assessment, whichever is earlier.
Conclusion
Section 140 of the Income Tax Act is a crucial provision that requires taxpayers to file income tax returns if their total income exceeds the basic exemption limit. Filing income tax returns within the due date is essential to avoid penalties and other consequences of non-compliance. Taxpayers can file income tax returns online or offline, and in case of any errors or omissions, can file a revised return within the prescribed time limit. It is advisable to consult a tax expert or chartered accountant for any queries related to the filing of income tax returns.
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Frequently Asked Questions (FAQs)
Q:1 Who is required to file an income tax return under Section 140 of the Income Tax Act?
A: Any person whose total income exceeds the maximum amount not chargeable to tax is required to file an income tax return under Section 140 of the Income Tax Act.
Q:2 What is the due date for filing income tax returns under Section 140 of the Income Tax Act?
A: The due date for filing income tax returns is generally July 31st of the assessment year. However, it can be extended by the Income Tax Department.
Q:3 What happens if I do not file an income tax return within the due date?
A: If you do not file an income tax return within the due date, you may be liable to pay a penalty of Rs. 5,000 under Section 234F of the Income Tax Act. The penalty amount may increase if you file the return after December 31st of the assessment year.
Q:4 Can I file an income tax return after the due date?
A: Yes, you can file an income tax return after the due date. However, you will be liable to pay a penalty of Rs. 5,000 under Section 234F of the Income Tax Act. The penalty amount may increase if you file the return after December 31st of the assessment year.
Q:5 Can I file a revised return under Section 140 of the Income Tax Act?
A: Yes, you can file a revised return under Section 140 of the Income Tax Act if you discover any errors or omissions in the originally filed income tax return. The revised return can be filed within a prescribed time limit.
Q:6 What are the consequences of non-compliance with Section 140 of the Income Tax Act?
A: Non-compliance with Section 140 of the Income Tax Act can lead to penalties, interest on late payment of tax, loss of certain benefits, and prosecution for willful default.
Q:7 Can I file income tax returns offline under Section 140 of the Income Tax Act?
A: Yes, you can file income tax returns offline by downloading the form from the Income Tax Department’s website, filling it manually, and submitting it physically to the Income Tax Department. However, online filing of income tax returns is more convenient, faster, and easier.
Q:8 Are there any exceptions to the requirement of filing an income tax return under Section 140 of the Income Tax Act?
A: Yes, there are some exceptions to the requirement of filing an income tax return under Section 140 of the Income Tax Act. For example, individuals who are over 80 years of age and do not have any income from business or profession are not required to file an income tax return. Similarly, individuals whose total income consists only of income from salary and interest up to Rs. 5 lakhs are also not required to file an income tax return.
