Provisions with respect to Return of Income under I.T. Act, 1961

Return of Income:- Section 139(1)-

Every person-

a. being a company or a firm; or

b. being a person other than a company or a firm, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to tax,

shall on or before the due date, furnish the return of his income or the income of such other person.

As per 6th proviso to section 139(1), total income of person referred to in clause (b) shall be taken without giving effect to the provisions of section 10(38) or section 10A or section 10B or section 10BA or section 54 or section 54B or section 54D or section 54EC or section 54F or section 54G or section 54GA or section 54GB or Chapter VI-A.

As per 7th proviso to section 139(1), a person referred to in clause (b), who is not required to furnish a return under this sub-section, and who during the previous year-

a. has deposited an amount or aggregate of the amounts exceeding one crore rupees in one or more current accounts maintained with a banking company or a co-operative bank; or

b. has incurred expenditure of an amount or aggregate of the amounts exceeding two lakh rupees for himself or any other person for travel to a foreign country; or

c. has incurred expenditure of an amount or aggregate of the amounts exceeding one lakh rupees towards consumption of electricity,

shall on or before the due date, furnish the return of his income.

As per 3rd proviso to section 139(1), every company or a firm shall also required to furnish on or before the due date the return in respect of its loss.

As per 4th proviso to section 139(1), a person, being a resident other than not ordinarily resident in India who is not required to furnish a return under this sub-section and who at any time during the previous year,-

a. holds, as a beneficial owner or otherwise, any asset (including any financial interest in any entity) located outside India or has signing authority in any account located outside India;

b. is a beneficiary of any asset (including any financial interest in any entity) located outside India,

shall furnish, on or before the due date, a return in respect of his income or loss.

Due Dates to file ITR:-

a. Due date is 31^st day of October of the Assessment Year, where the assessee is-

i. a company; or

ii. a person (other than a company) whose accounts are required to be audited under this Act or under any other law for the time being in force; or

iii. a 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.

b. Due date is 30^th day of November of the Assessment Year, where assessee is required to furnish report referred to in section 92E.

c. Due date is 31^st day of July of the Assessment Year in all other cases.

Return of Loss:-Section 139(3)-

If any person who has sustained a loss in any previous year under the head "Profits and gains of business or profession" or under the head "Capital gains" and claims that the loss or any part thereof should be carried forward, he may furnish, within the time allowed under sub-section (1), a return of loss, and all the provisions of this Act shall apply as if it were a return under sub-section (1).

It may be noted that loss under the head "Income from house property" has not been mentioned in section 139(3) which means such loss can be carried forward even though the return of loss has not been furnished within the time allowed under section 139(1).

Belated Return:- Section 139(4)-

Any person who has not furnished a return within the time allowed to him under sub-section (1), may furnish the return for any previous year at any time before 31st Day of December of the assessment year or before the completion of the assessment, whichever is earlier.

Return of Income of Trusts/Institutions claiming exemption u/s 11 & 12:- Section 139 (4A)-

Every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes, shall, (the total income for this purpose being computed under this Act without giving effect to the provisions of section 11 & 12 exceeds the maximum amount which is not chargeable to income-tax), furnish a return of such income of the previous year and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).

Return of Income of Political party:- Section 139(4B) -

The chief executive officer of every political party shall, if the total income in respect of which the political party is assessable (the total income for this purpose being computed under this Act without giving effect to the provisions of section 13A) exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year and all the provisions of this Act, shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).

Similarly section 139(4C) mandates certain institutions referred u/s 10 to furnish return of income, further section 139(4D) mandates universities, research institutions governed by section 35 to furnish return of income, also section 139(4E) and 139(4F) mandates business trust and investment fund to file its return of income by the due dates specified u/s 139(1).

Revised Return:- Section 139(5)-

If any person, having furnished a return under sub-section (1) or sub-section (4), discovers any omission or any wrong statement therein, he may furnish a revised return at any time before 31^st December of the assessment year or before the completion of the assessment, whichever is earlier.

Defective Return:- Section 139(9)-

Where the Assessing Officer considers that the return of income furnished by the assessee is defective, he may intimate the defect to the assessee and give him an opportunity to rectify the defect within a period of fifteen days; or within such further period, which, on an application made in this behalf, the assessing officer may allow and if the defect is not rectified within the said period of fifteen days, or as the case may be, the further period so allowed, then, the return shall be treated as an invalid return and the provisions of this Act shall apply as if the assessee had failed to furnish the return.

It may be noted that where the assessee rectifies the defect after the expiry of the said period of fifteen days or the further period allowed, but before the assessment is made, the Assessing Officer may condone the delay and treat the return as a valid return.

It may also be noted that due to pandemic and new income tax web portal due dates for Assessment Year 2021-22 have been extended by CBDT.