Section 139(1)-Return of Income

Section 139 of the Income Tax Act, covers the different kinds of returns that; an assessee can file in case he/she has not filed tax returns before the expiry of the prescribed deadline.

Section 139(1)-Return of Income

This section consists of several subsections which deals with different types of income tax returns; that are required to be filed in case returns have not been filed by the prescribed deadline. Here, we will discuss only section 139(1).

Section 139(1) covers two different types of belated income tax returns namely, mandatory returns and voluntary returns.

Section 139(1) of the Income Tax Act

Under this section, every person being a company or a firm, or other than a company or a firm, if his total income in respect of which he is assessable under this act during the PY surpassed the maximum amount which is not chargeable to income-tax, shall, furnish a return of his income during the PY, on or before the due date, in the prescribed form & authenticated in the prescribed manner & setting forth such other particulars as may be specified.

However, a person other than a company or a firm, who is not needed to furnish a return under this sub-section & residing in such area as may be mentioned by the Board in this behalf by notification in Official Gazette, & who during the PY incurs the expenditure of fifty thousand rupees or more towards the consumption of electricity or at any time during the PY fulfils any one of the following conditions as below;

     i) is in the occupation of an immovable property surpassing a specified floor area; whether by ownership, tenancy or otherwise, as may be prescribed by the Board in this behalf; or

     ii) is the owner/lessee of a motor vehicle other than a two-wheeled motor vehicle; whether having any detachable side car having an extra wheel attached to such two-wheeled motor vehicle or not; or

     iii) has incurred expenditure for himself or any other person on travel to any foreign country; or

     iv) is the holder of a credit card, not being an “add-on” card, issued by any bank or institution; or

     v) is a member of a club where entrance fee charged is Rs. 25,000 or more,

shall furnish a return, of his income during any PY ending before the 1st April 2005, on or before the due date in a prescribed form & verified in the prescribed manner & setting forth such other particulars as may be specified.

Provided that;

the Central Government may, by notification in the Official Gazette; specify the classes or class of persons to whom the provisions of the first provision shall not apply.

every company or a firm shall furnish the return in respect of its income or loss in every PY; on or before the due date.

A person, being a resident (other than not ordinarily resident) in India within the meaning of section 6(6), who is not required to furnish a return under this subsection & who at any time during the PY;

     a) holds, as a beneficial owner or otherwise, any asset (having any financial interest in any entity) situated outside India or has signing authority in any account established outside India; or

     b) is a beneficiary of any asset (having any financial interest in any entity) situated outside India,

shall furnish, on or before the due date, a return in respect of his income/loss for the PY in such form & verified in such manner & setting forth such other particulars as may be specified.

Provided that;

nothing included in the fourth provision shall apply to an individual, being a beneficiary of any asset (having any financial interest in any entity) situated outside India where, income, if any, resulting from such asset is includible in the income of a person referred to in clause (a) of that provision as per the provisions of this Act.

Every person, being an individual or a HUF or a body of individuals or an association of persons, whether incorporated or not, or an artificial juridical person, if his aggregate income or the aggregate income of any other person in regard of which he is assessable under this Act during the PY, without giving effect to the provisions of 38[clause (38) of section 10 or] section 10A or section 10B or section 10BA or Chapter VI-A surpassed the maximum amount which is not chargeable to income-tax, shall, furnish a return of his income or the income of such other person during the PY, on or before the due date, in the prescribed form & verified in the prescribed manner & setting forth such other particulars as may be specified.

Explanation:

1. Here, the expression “Motor Vehicle” shall have the meaning; ascribed to it in section 2(28) of the Motor Vehicles Act, 1988 (59 of 1988).

2. Here, the expression “travel to any foreign country” does not include travel to the neighboring countries or; to such places of pilgrimage as a Board may designate in this behalf by notification in Official Gazette.

3. “Beneficial Owner” in respect of an asset implies an individual who has provided, directly or indirectly; compensation for the asset for the current or future benefit, direct or indirect, of himself or any other person.

4. “Beneficiary” in respect of an asset implies an individual who acquires benefit from the asset during the PY & the consideration for such asset has been provided by any person other than such beneficiary.

5. Due date for;

     i) An assessee who is required to furnish a report referred to in section 92E is 30th November of the AY.

    ii) A company, or a person (other than the company) whose accounts are needed to be audited under this Act or under any other law for the time being in force; or a working partner of a firm whose accounts are required to be audited under this Act or under any other law for the time being in force is the 30th September of the AY.

    iii) In case of a person other than a company, referred to in the first provision of this subsection, the due date is 31st October of the AY.

     iv) in the case of any other assessee, the due date is 31st July of the assessment year.

Important Points:

(1A): Without prejudice to the provisions of sub-section (1), any person, being an individual who is receiving any income chargeable under the head “Salaries” may, at his option, provide a return of his income for any PY to his employer, in accordance with such scheme as may be defined by the Board in this behalf, by notification in Official Gazette, & subject to such conditions as may be mentioned therein, & such employer shall furnish all returns of income earned by him on or before the due date, in such form (including on a diskette, floppy, magnetic cartridge tape, CD-ROM or any other computer readable media) & manner as may be defined in that scheme, & in such case, any employee who has filed a return of his income to his employer shall be assumed to have furnished the return of income under sub-section (1), and the provisions of this Act will apply accordingly.

(1B): Without detriment to the provisions of sub-section (1), any person, being a company or being a person other than the company, required to furnish a return of income under sub-section (1), may, at his option, furnish a return of his income for any PY, on or before the due date, as per such scheme as may be prescribed by the Board in this behalf by notification in Official Gazette & subject to such conditions as may be prescribed therein, in such form (including on a diskette, floppy, magnetic cartridge tape, CD-ROM or any other computer readable media) & in the manner as may be prescribed in that scheme, and in such case, the return of income provided under such scheme shall be assumed to be a return provided under sub-section (1), & the provisions of this Act will apply respectively.

(1C): Notwithstanding anything included in sub-section (1), the Central Government may, by notification in Official Gazette; exempt any class or classes of persons from the obligation of furnishing a return of income; having respect to such conditions as may be prescribed in that notification.

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