Section 139 in income tax may not be the most exciting topic out there, but it is certainly one that affects all taxpayers. In its simplest form, Section 139 states that every person whose total income exceeds the permissible limit is required to file an income tax return. This section also specifies the due date for filing returns, the different types of returns that can be filed, and the consequences of not filing returns on time.
Now, I know what you’re probably thinking – “Ugh, taxes, who cares?” But think about it for a moment. We all reap the benefits of government-funded programs and services, like public schools, infrastructure, and healthcare. Paying taxes is not only a legal obligation but also a civic duty. Understanding Section 139 ensures that you are fulfilling your duties as a responsible citizen and avoiding any potential legal consequences. Plus, if you’re like me, you want to make sure you’re keeping as much of your hard-earned money as possible.
So, let’s dive a little deeper into the nuances of Section 139. Did you know that there are different types of tax returns, including ones for individuals, businesses, and even charitable organizations? And depending on your income and occupation, you may have different deductions and exemptions available to you. Learning about these intricacies can save you a lot of money in the long run. Trust me, I’ve learned this the hard way. So, grab a cup of coffee, put on your thinking cap, and let’s explore the world of Section 139 together.
Understanding Income Tax Law
Income tax is a familiar concept in the financial world, and it is an essential aspect of the government’s revenue collection system. However, navigating through the complicated tax laws can be a daunting task, and understanding its complexities is critical for compliance. Below is a breakdown of Section 139 of the Income Tax Act of 1961, which specifies the filing of the Income Tax Return (ITR).
What is Section 139?
Section 139 of the Income Tax Act of 1961 mandates the filing of the Income Tax Return (ITR) by individuals and businesses. The law requires taxpayers to declare their income, deductions, and investments and pay tax if they fall under the taxable bracket. The purpose of this section is to ensure that individuals pay taxes on time and that income tax evaders can be identified and penalized.
- Under this section, the deadline for ITR filing is July 31st of every year for individuals who are not required to get their accounts audited. This deadline is extended to October 31st for individuals whose accounts are to be audited.
- The law also allows a belated ITR filing after the deadline, but it will attract a late filing fee and interest on the tax due.
- Individuals who miss the ITR filing deadline can file a ‘revised return’ within the following year if they want to make any corrections to their original return. However, this facility is available only if the original return was filed within the deadline.
Consequences of Non-Compliance
Non-compliance with Section 139 can have severe consequences for individuals and businesses. The following are some potential implications:
| Penalty | Description |
|---|---|
| Penalty for Late Filing | Taxpayers need to pay a penalty up to Rs. 10,000 for filing ITR after the deadline. If the income is less than Rs. 5 lakh, the maximum penalty would be Rs. 1,000. |
| Interest on Late Payment | Individuals and businesses with outstanding tax payments after the deadline are liable to pay interest at the rate of 1% per month. |
| Prosecution | If taxpayers do not file their returns or pay their taxes, it can lead to prosecution under various provisions of the Income Tax Act. |
| Refund Claims | Taxpayers may lose the opportunity to claim refunds owed to them if they do not file their ITR within the deadline. |
Therefore, taxpayers should ensure compliance with Section 139 to avoid legal repercussions. It is advisable to hire a tax consultant to navigate through the complicated tax laws and ensure accurate ITR filing.
Section 139: An Overview
Section 139 of the Income Tax Act, 1961 mandates an individual to file their Income Tax Return (ITR) within a specific due date. Since it is a crucial aspect of fulfilling one’s tax obligation, a taxpayer must be aware of the provisions and guidelines related to the section. It also concerns various vital aspects such as belated filing, return revision, etc.
Why is Section 139 Relevant?
- Lawful Requirements: Filing ITR is a lawful obligation for taxpayers.
- Belated Return Filing: Section 139 acts as a cover for belated return filing. A taxpayer can file a return after the due date by invoking the provisions of section 139.
- Resolving discrepancies: A taxpayer can also revise their previous year’s return, and in case any discrepancy arises in the tax computation of ITR, Section 139 ensures a chance to rectify it.
Types of Returns under Section 139
Section 139 of the Income Tax Act specifies specific types of tax returns for availing compliance. Taxpayers can file the following types of returns:
- ITR 1 or Sahaj: Applicable for individuals who earn income from salary or pension, or sources like one property, interest, or current account.
- ITR 2: Applicable for individuals or Hindu Undivided Families (HUFs) who are not eligible to file ITR-1 but whose income does not exceed the maximum amount not chargeable to tax.
- ITR 3: This return is mandatory for individuals or HUFs who have income under the head ‘profit and gains from business or profession.’
- ITR 4 or Sugam: Applicable for individuals, HUFs, or partnership firms with a total income of up to Rs 50 lakhs, and income under presumptive taxation the scheme of section 44AD/44ADA/44AE.
- ITR 5: Applicable for Limited Liability Partnerships (LLPs), Association of Persons (AoPs), Body of Individuals (BoIs), firms, etc.
Due dates for Filing ITR under Section 139:
The due dates for filing ITR are as follows:
| ITR Type | Due Date |
|---|---|
| ITR 1 | 31st July of every Assessment Year (AY) |
| ITR 2, 3, 5, 6 and 7 | 31st July of every Assessment Year (AY) if taxpayer is not required to obtain a Tax Audit Report(TAR), and 30th September of every Assessment Year (AY) if taxpayer is under Tax Audit. |
| ITR 4 | 31st July of every Assessment Year (AY) if taxpayer is not required to obtain a Tax Audit Report(TAR), and 31st October of every Assessment Year (AY) if taxpayer is under Tax Audit. |
Therefore, as per the due date of the respective types of returns, taxpayers need to ensure compliance with Section 139 of the Income Tax Act at the earliest.
Filing Income Tax Returns Online
Filing income tax returns can often be a tedious task, but with the advent of online filing, it has become easier and more convenient. Section 139 of the Income Tax Act, 1961, deals with the various provisions related to filing income tax returns. The provision lays down certain deadlines for filing returns and specifies the eligibility criteria for qualifying for the online filing of returns.
- One of the benefits of online filing of income tax returns is that it can be done from anywhere, at any time. Taxpayers no longer need to stand in long queues or visit income tax offices to file their returns.
- Another benefit is that online filing reduces the chances of errors. The online platform provides a step-by-step guide that helps taxpayers fill in all details correctly. It also performs various validations to ensure that the information provided is accurate.
- Online filing of returns is also faster than the traditional offline filing method. The entire process takes only a few minutes, and taxpayers can receive their refunds within a few days.
However, certain precautions must be taken while filing returns online. Taxpayers must ensure that they have an active internet connection and are filing returns on a secured portal. They must also verify the return before submitting it to avoid any discrepancies later.
Below is a table summarising the eligibility criteria for online filing of income tax returns:
| Eligibility Criteria | Description |
|---|---|
| Individual Taxpayers | Individual taxpayers with an income of up to Rs 50 lakhs in a financial year can file their returns online. In case the income exceeds the limit, the return must be filed offline. |
| Businesses and Firms | Businesses and firms of any size can file their returns online. |
Overall, filing income tax returns online is a boon for taxpayers. The process is hassle-free, time-saving and error-free, making it an ideal option for those who want to avoid any last-minute stress and confusion.
Documents Required for Filing Income Tax Returns
Section 139 of the Income Tax Act mandates the filing of income tax returns by certain individuals. Filing income tax returns is an important responsibility for every citizen to comply with the law and contribute to the development of the country. To file an income tax return, you need to have the following documents:
- PAN (Permanent Account Number) card
- Form 16, which is given by the employer or payer of the income
- Bank statements or passbook reflecting the transactions made during the year
- Investment-related documents like Form 16A, Form 16B, Form 16C, and Form 26AS
- Receipts of taxes paid
- Deduction-related documents like LIC policy certificates, health insurance premium receipts, home loan interest certificates, and so on
Section 139 (4): Belated Return
Even if you have missed the deadline for filing returns, you can still file the return under Section 139 (4) of the Income Tax Act. This provision allows taxpayers to file the returns after the due date, which is July 31 in most cases.
If you have missed the deadline, you will have to pay a penalty of Rs. 5000 (as per the Finance Act, 2021) for filing the tax return. However, if the total income does not exceed Rs. 5 lakh, the penalty amount will be limited to Rs. 1000.
If you have any outstanding taxes to be paid, you will have to pay them with interest before filing the belated return. Moreover, if the return has been filed after the due date, losses under the head “capital gains” cannot be carried forward.
Conclusion
Filing income tax returns is a legal obligation for every Indian citizen. You need to ensure that you have all the necessary documents before filing the returns. In case you miss the deadline, you can still file returns under Section 139(4) but with the penalty. To avoid any such penalties and other charges, it is advisable to file returns within the due dates.
| Due Date | Assessment Year 2021-22 (FY 2020-21) |
|---|---|
| 30th September 2021 (For Companies and Other than Companies whose accounts are required to be audited) | – |
| 31st October 2021 (For individuals, Hindu Undivided Families (HUFs), partnership firms, and people other than whose accounts are required to be audited) | 31st March 2022 (Extended due date) |
| 30th November 2021 (Tax Audit Cases) | – |
| 31st December 2021 (Transfer Pricing Cases) | – |
Penalties for Non-Compliance with Section 139
Section 139 of the Income Tax Act requires individuals and businesses to file their income tax returns on time. Failure to do so can result in penalties and legal consequences. Here are some of the penalties for non-compliance with Section 139:
- Late Filing Fees: Individuals or businesses who file their returns late will be required to pay a late filing fee. The fee is calculated based on the period of delay and the income earned. For instance, if an individual fails to file the return by the due date of July 31st and does so by December 31st, they will be required to pay a late filing fee of Rs.5,000.
- Interest on Late Payment: If an individual or business fails to pay their taxes on time, they will be required to pay an interest on the late payment. The interest rate is currently 1% per month or part of the month on the amount of tax due.
- Penalty for Underreporting Income: If an individual or business underreports their income, they may be subject to a penalty of up to 200% of the amount of tax evaded. This penalty is in addition to the tax, interest, and other penalties that may be applicable.
- Penalty for Late Payment: If an individual or business fails to pay their tax on time, they will be required to pay a penalty of up to 1% of the unpaid amount per month or part of the month. This penalty cannot exceed the amount of tax due.
- Prosecution: In severe cases, non-compliance with Section 139 may result in prosecution. This may involve imprisonment for a term of up to seven years, along with a fine. Prosecution is usually reserved for cases where there has been a deliberate attempt to evade taxes.
Consequences of Non-Compliance with Section 139
Failing to comply with Section 139 can have serious legal and financial consequences. Apart from the penalties discussed earlier, individuals or businesses who do not file their tax returns on time may also be barred from claiming certain deductions or carry-forward losses. They may also face difficulties in obtaining loans or credit from financial institutions, as these institutions usually require tax returns as proof of income.
The Importance of Compliance with Section 139
Complying with Section 139 is essential for individuals and businesses who wish to avoid legal and financial consequences. Filing tax returns on time not only ensures compliance with the law but also helps individuals and businesses to plan their finances better. It also serves as proof of income, which is required for various purposes such as obtaining loans, visas, and insurance policies.
| Type of Non-Compliance | Penalty |
|---|---|
| Late Filing | Rs 5,000 or more |
| Late Payment | 1% per month on the unpaid amount |
| Underreporting Income | Up to 200% of the tax evaded |
| Prosecution | Imprisonment for up to 7 years, along with a fine |
It is, therefore, advisable for individuals and businesses to comply with Section 139 and file their tax returns on time to avoid any legal or financial consequences.
Income Tax Slabs and Rates
Section 139 in Income Tax is a crucial aspect taxpayers need to understand. This section mandates individuals to file their income tax returns before the due date every year if their total income during the financial year exceeds the specified limit. Failing to do so can attract penalties and interest charges.
While filing returns, it is essential to know the applicable income tax slab rates for the financial year. The tax slab depends on the individual’s age and income earned during the financial year. The current income tax slab rates under Section 139 for the financial year 2021 – 2022 are as follows:
- Individuals below 60 years of age:
- Income up to Rs. 2,50,000 – No tax
- Income between Rs. 2,50,001 to Rs. 5,00,000 – 5%
- Income between Rs. 5,00,001 to Rs. 10,00,000 – 20%
- Income more than Rs. 10,00,000 – 30%
- Senior citizens between 60 to 80 years of age:
- Income up to Rs. 3,00,000 – No tax
- Income between Rs. 3,00,001 to Rs. 5,00,000 – 5%
- Income between Rs. 5,00,001 to Rs. 10,00,000 – 20%
- Income more than Rs. 10,00,000 – 30%
- Super senior citizens above 80 years of age:
- Income up to Rs. 5,00,000 – No tax
- Income between Rs. 5,00,001 to Rs. 10,00,000 – 20%
- Income more than Rs. 10,00,000 – 30%
Section 139(6)
Section 139(6) provides individuals an extension of time to file or re-file their income tax returns if failed to file or wish to revise the filed returns following the deadline. This extension is granted until the end of the relevant assessment year. However, certain conditions need to meet for availing this extension:
- The return should be filed before the completion of the assessment year (for instance, for the financial year 2020-21, the relevant assessment year would be 2021-22);
- The return should be filed before the expiry of one year from the end of the relevant assessment year;
- The taxpayer owes no taxes or penalties and has adhered to tax compliance until the filing/re-filing of the return.
Conclusion
It is crucial to keep track of the income tax slab rates and return filing deadlines to ensure a smooth tax-filing process. Individuals can employ tax consultants or avail online tax-filing services for accurate filings and timely compliance.
| Income Tax Slab Rates for Financial Year 2021-22: |
|---|
| Individuals below 60 years of age: |
| Income up to Rs. 2,50,000 – No tax |
| Income between Rs. 2,50,001 to Rs. 5,00,000 – 5% |
| Income between Rs. 5,00,001 to Rs. 10,00,000 – 20% |
| Income more than Rs. 10,00,000 – 30% |
| Senior citizens between 60 to 80 years of age: |
| Income up to Rs. 3,00,000 – No tax |
| Income between Rs. 3,00,001 to Rs. 5,00,000 – 5% |
| Income between Rs. 5,00,001 to Rs. 10,00,000 – 20% |
| Income more than Rs. 10,00,000 – 30% |
| Super senior citizens above 80 years of age: |
| Income up to Rs. 5,00,000 – No tax |
| Income between Rs. 5,00,001 to Rs. 10,00,000 – 20% |
| Income more than Rs. 10,00,000 – 30% |
Tax Deductions and Exemptions under Section 139
Section 139 of the Income Tax Act, 1961, deals with the filing of an income tax return. It is essential to file income tax returns on time to avoid any penalty or interest. The section provides various benefits, such as tax deductions and exemptions, to taxpayers who file their returns on time. The tax deductions and exemptions under section 139 are listed below.
Number 7 Subsection
- Section 80D: Deductions for Medical Insurance
- Section 80DD: Deductions for Medical Treatment of Dependent with Disability
- Section 80DDB: Deductions for Medical Treatment of Specified Diseases
The seventh subsection of section 139 provides tax deductions under various sections of the Income Tax Act. These deductions are available to individuals who have timely filed their income tax returns. One of the essential deductions provided under this subsection is medical insurance.
Section 80D of the Income Tax Act allows taxpayers to claim deductions for medical insurance. The deduction is available for the payment of the medical insurance premium, which covers the taxpayer, spouse, dependent children, and parents. The maximum deduction available is Rs. 25,000 in case of individual taxpayers and Rs. 50,000 in case of senior citizens.
Another essential deduction provided under this subsection is for the medical treatment of a dependent with a disability. Section 80DD provides deductions for the medical treatment of dependent children, parents, or siblings who have 40% or more disability. The maximum deduction available is Rs. 75,000.
Section 80DDB provides deductions for the medical treatment of specified diseases such as cancer, chronic renal failure, or Parkinson’s disease. The deduction is available to taxpayers who have incurred expenses for the treatment of themselves, spouse, children, parents, or siblings. The maximum deduction available is Rs. 40,000 for non-senior citizens and Rs. 1,00,000 for senior citizens.
Overall, the seventh subsection of section 139 provides vital tax deductions to taxpayers who have filed their income tax returns on time. Availing these deductions can significantly reduce the tax liability of the taxpayer.
FAQs: What is Section 139 in Income Tax?
Q1. Why do we need to know about section 139 of income tax?
Ans: Section 139 deals with the mandatory filing of income tax returns. It is essential to understand the provisions of Section 139 to comply with the income tax laws and avoid penalties and legal consequences.
Q2. Who is liable to file the income tax return under section 139?
Ans: Any individual, HUF, or company whose gross total income exceeds the basic exemption limit is liable to file income tax returns under section 139.
Q3. What is the due date for filing income tax returns under section 139?
Ans: The due date for filing income tax returns under section 139 for the relevant assessment year is 31st July of the following financial year. However, the deadline can be extended in certain cases.
Q4. What are the consequences of not filing income tax returns under section 139?
Ans: Failure to file income tax returns can result in penalties, prosecution, and other legal consequences. A person may also face difficulties in obtaining loans, credit cards, and applying for visas or passports.
Q5. How can I file my income tax returns under section 139?
Ans: Income tax returns can be filed online or offline. Various e-filing portals and mobile applications are available to file the ITR online. Offline mode includes filling the physical form and submitting it to the tax department.
Q6. Is it necessary to verify the ITR filed under section 139?
Ans: Yes, it is mandatory to verify the ITR filed under section 139 to complete the process and avoid any discrepancy between the filing and assessment of income tax returns.
Closing Thoughts
We hope this article has provided you with the necessary information about what Section 139 in Income Tax is. It is important to file your income tax returns correctly and on time to avoid penalties and legal consequences. If you have any further queries or need assistance, seek the guidance of a tax consultant or visit the official IRS website. Thank you for reading, and we hope to see you again soon!