Section 139 of Income Tax Act & Importance of filing

Section 139 of the Income Tax Act

Section 139 of the Income Tax Act deals with the filing of Income Tax returns. It specifies the circumstances under which individuals, Hindu Undivided Families (HUFs), companies, and other entities are required to file their returns. Section 139 1 of Income Tax Act is the foundation of the ITR filing process, specifying the timelines, forms, and procedures involved. It is a complete guide to understand your obligations related to filing income tax returns.

Why Section 139 1 of Income Tax Act:

Section 139 1 of the Income Tax Act specifically deals with the mandatory filing of income tax returns. It lists the categories of taxpayers who must file their returns if their income exceeds certain thresholds. Section 139 1 of Income Tax Act is particularly important as it establishes the basic criteria for compulsory ITR filing.

Who is Required to File Under Section 139 1 of Income Tax Act?

Section 139 1 of Income Tax Act mandates ITR filing for the following categories of taxpayers if their income exceeds the basic exemption limit:

• Individuals: Resident individuals whose gross total income exceeds the basic exemption limit (currently ₹2.5 lakhs for individuals below 60 years, ₹3 lakhs for senior citizens (60-80 years), and ₹5 lakhs for super senior citizens (above 80 years)).
• Hindu Undivided Families (HUFs): HUFs whose gross total income exceeds the basic exemption limit.
• Companies: All companies, whether private or public, are required to file their income tax returns, irrespective of their income or profit.
• Firms: Partnership firms, Limited Liability Partnerships (LLPs), and other similar entities are required to file ITRs.
• Associations of Persons (AOPs) and Body of Individuals (BOIs): These entities are also required to file returns if their income exceeds the basic exemption limit.

Important Considerations Regarding Section 139 1 of Income Tax Act:

• Gross Total Income: The income considered for determining the filing requirement is the gross total income before deductions under Chapter VI-A (like Section 80C, 80D, etc.).
• Basic Exemption Limit: The basic exemption limit under Section 139 1 of Income Tax Act varies based on the individual's age. It's crucial to be aware of the applicable limit for your category.
• Even if Income is Below Exemption Limit: Even if your income is below the basic exemption limit as per Section 139 1 of Income Tax Act, still filing an ITR is often beneficial. It serves as an official record of your income and can be helpful for various purposes, such as loan applications, visa processing, etc.
• Resident Status: The applicability of Section 139 1 of Income Tax Act also depends on the residential status of the individual.

Due Dates for Filing ITR Under Section 139 1 of Income Tax Act:

The due dates for filing ITR under Section 139 1 of Income Tax Act vary depending on the type of taxpayer:

• Individuals and HUFs: Generally, the due date is July 31st of the following assessment year.
• Companies: Companies have a due date of October 31st of the following assessment year.
• Other entities: Other entities like firms, AOPs, and BOIs also generally have a due date of July 31st.

Consequences of Not Filing Under Section 139 1 of Income Tax Act:

If you fail to file your ITR under Section 139 1 of Income Tax Act within the due date, it can result in penalties under Section 234F of the Income Tax Act. The penalty amount under section 139 1 of Income Tax Act varies depending on the delay and the total income. Additionally, non-filing can lead to scrutiny from the income tax department, which may involve inquiries, assessments, and even more severe consequences.

Benefits of Filing ITR:

While filing ITR under Section 139 1 of Income Tax Act is a legal obligation for many, it also comes with several benefits:

• Proof of Income: ITR serves as a valid proof of your income, useful for various financial transactions.
• Claiming Refunds: If you've paid excess tax, you can claim a refund through your ITR.
• Avoiding Penalties: Filing on time helps you avoid penalties for late filing.
• Building Financial Credibility: Regular ITR filing enhances your financial credibility.

Conclusion:

Section 139 1 of Income Tax Act is a fundamental provision that mandates income tax return filing for specified categories of taxpayers. Hence understanding the requirements, due dates, and consequences of non-compliance is necessary. Even if you're not obligated to file ITR, doing so can be beneficial in the long run. Becoming aware and staying updated and compliant with Section 139 1 of Income Tax Act and other provisions of the Income Tax Act is necessary for better financial management.