Section 139 of Income Tax Act 1961 – Late ITR Filing Update

According to the Section 139 of the Income Tax Act, 1961, any individual who has not yet filed their income tax returns can further receive multiple different kinds of returns from the IT department, reminding them to file.

Section 139 of the Income Tax Act 1961 deals with the different kinds of returns that can be filed in case the person or the entity in question has not filed tax returns before the expiry of the prescribed deadline. In general the due dates prescribed by which individuals or entities are required to file their income tax returns are as follows:

A belated return is a return filed after the deadline i.e. 31st July of the assessment year but before 31st December of the assessment year. While late filing has consequences, it’s still better than facing potential penalties for non-compliance.

The due date to file income tax return for the Financial Year 2023-24 is 31st July 2024. If you miss filing your ITR within the original deadline, then you can file a late return, known as Belated Return.

Filing ITR for Previous Year

If you missed filing ITR for previous year within due date, you can file a belated return on or before 31st December of the relevant assessment year. For Example, for the AY 2024-25, the timeline to file a belated return is on or before 31 December 2024. 
In case you miss the belated return deadline, then you may file ITR-U in certain specified cases. 
The amendment vide Finance Act 2021 reduced the timeline of filing the belated return. With effect from AY 2021-22, you can file the belated return three months before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

Drawbacks of Filing Late Return

The following are the disadvantages of filing a belated return:

• Interest may be applicable under sections 234A, 234B and 234C.
• A late fee will be levied under Section 234F while filing a belated return: 

Gross total income	Late fee
up to Rs. 5 lakh	Rs 1,000
more than Rs. 5 lakh	Rs 5,000

• If you have incurred losses, like business and capital losses, they cannot be carried forward and set off in the subsequent years. However, an exception is available for losses from house property that can be carried forward even if you file your returns late.
• Deductions/ Exemptions Disallowed: Deductions/ exemptions u/s 10A, 10B, 80-IA, 80-IB, 80-IC, 80-ID and 80-IE shall not be available if you delay ITR filing. These tax-saving benefits are allowed only if the ITR is filed before the original deadline.

Different Types of Income Tax Returns To Be Filed Under Section 139 of the Income Tax Act 1961

While Section 139 generally deals with late filing of income tax returns, it also consists of sub sections which deal with different types of income tax returns that are required to be filed in case returns have not been filed by the prescribed deadline. These subsections are as follows:

Section 139(1) – Mandatory Return and Voluntary Return:

Section 139(1) of the Income Tax Act deals with two types of belated income tax returns, namely Mandatory Returns and Voluntary Returns.

Mandatory Returns:

The following individuals or entities are required to file a Mandatory Return:

1. Any company regardless of whether it may be public, private, foreign or domestic
2. Any firm, which also includes Limited Liability Partnerships (LLP) as well as Unlimited Liability Partnerships
3. Any person provided that the sum of his or her taxable income for the financial year of relevance is more than the exemption limit allowed

Voluntary Returns:

If a person or entity has filed income tax returns should an event arise wherein the individual or the entity is not under any compulsion to file a Mandatory Return, then the income tax returns filed by the person or the entity in question will be deemed to be a Voluntary Return. Voluntary Returns are also considered to be valid returns.

Section 139(3) – Return of Loss

Section 139(3) of the Income Tax Act states the following:

1. Any assessee or entity who has acquired or earned any income that falls under the heading ‘Profits and Gains of Business or Profession’ or under the heading ‘Capital Gains’, then the assessee or the entity in question will mandatorily be required to file income tax returns of such income at any time prior to the expiration of the due date as mentioned under Section 139(1)
2. Should the assessee or the entity in question not file income tax returns before the expiration of the due date mentioned under Section 139(1), then the assessee or entity will lose the right to carry forward any losses incurred to subsequent years.
3. However, the late filing of income tax returns will still not affect the assessee’s or the entity’s right to set-off these losses. Any losses incurred under the following headings will not be affected by late filing of income tax returns:
   1. Losses incurred through house or residential property
   2. Losses or expenses that have been unabsorbed as mentioned in Section 32(2)

Section 139(5) – Revised Return

Section 139(5) of the Income Tax Act states the following:

1. An assessee or entity has the right to file a revised income tax return within a period of one year following the expiration of the assessment year of relevance or prior to the completion or conclusion of assessment, depending on which takes place sooner, if the original or initial income tax return that was filed by the assessee or entity as per Section 139(1) or Section 142(1)(i) contains a particular or specific ‘omission’ or ‘wrong or invalid statement’ within it.
2. A belated or late income tax return cannot be revised. However, any loss return that was filed within the prescribed due date as mentioned in Section 139(1) can be eligible for revision.

Section 139(4A) – Return of Income of a Charity or Religious Institution

Section 139(4A) of the Income Tax Act states the following:

1. Any public charity or religious institutions that are looking to claim tax exemptions as per Section 11 and Section 12 of the Income Tax Act are mandatorily required to file their income tax returns provided that the sum of the income accumulated prior to the provisions outlined in Section 11 and Section 12 is beyond the basic limit allowed for exemption.

Section 139(4B) – Return of Income of a Political Party

Section 139(4B) of the Income Tax Act states the following:

1. Any political party or party with political affiliations will be required to mandatorily file its income tax returns provided that the sum of the income accumulated by the party is beyond the basic limit allowed for exemption without taking into consideration any benefits outlined in Section 13A of the Income Tax Act 1961

Section 139(4C) and Section 139(4D)

Section 139(4C) and Section 139(4D) of the Income Tax Act deal with specific or certain institutions who claim benefits as per Section 10 of the Income Tax Act 1961. These sections state the following:

1. An institution is mandatorily required to file its income tax returns provided that the sum of the income accumulated by the institution in question is beyond the basic limit allowed for exemption, without taking into consideration any other exemption benefits.
2. This applies to those institutions who are looking to claim tax exemptions under the following clauses of Section 10
   1. Clause (21)
   2. Clause (22B)
   3. Clause (23A)
   4. Clause (23C)
   5. Clause (23D)
   6. Clause (23DA)
   7. Clause (23FB)
   8. Clause (24)
   9. Clause (46)
   10. Clause (47)
3. Section 139(4D) also applies to those institutions that are mentioned in the following sections of the Income Tax Act
   1. Section 35(1)(ii)
   2. Section 35(1)(iii)

Section 139(9) – Defective Returns

Section 139(9) of the Income Tax Act deals with defective returns of income. Defective returns are those income tax returns that are deemed to contain specific defects as outlined in the provisions of Section 139(9).

An income tax return that has been filed shall be deemed to be defective if the conditions mentioned below are not satisfied:

1. The columns, annexures and statements contained in the tax return are completely and correctly filled in
2. The tax along with the interest if applicable was:
   1. Paid on the due date prescribed for submitting the income tax return
   2. Prior to the due date prescribed for submitting the income tax return
   3. Paid in accordance with the provisions of Section 140A

Section 139(9) of the Income Tax Act also states the following

1. In the event the Assessing Officer deems that the income tax return that has been submitted by the assessee is found to contain defects, he or she may notify the assessee in question about the defects contained within the return, and offer him or her the chance to correct the defects.
2. Should the assessee in question correct the defects found in the income tax return within the time frame or period of extension that has been allowed to him or her, then the return will be deemed to be valid.
3. If the assessee in question is found to have not corrected or rectified the defects found in the income tax return within the time frame or period of extension that has been allowed to him or her, then the return will be deemed to be invalid.

How to File Belated Returns?

Belated return u/s 139(4) can be in the usual manner on Cleartax. Refer to this page for a detailed guide.

If you wish to file it on Income Tax Portal, take a look at this step-by-step guide on how to file a belated return online and offline.

Online Method

Step 1: Log in to your account on the e-filing account

Step 2:  Click on ‘e-File‘ > Choose ‘Income Tax Returns‘ and > Select ‘File Income Tax Return‘

Step 3: Select the relevant assessment year

Step 4: If you select the mode of filing as ‘Online’, follow Steps 5-10. 

Step 5: Click on the ‘Start new filing’ button

Step 6: Select the applicable status

Step 7: Now, select the applicable ITR form

Step 8: Click on the ‘Personal Information’ section and ensure all your personal details are correct.

Step 9: Scroll down to the filing section and select 139(4).

Step 10: Fill in all your income details under various source heads and proceed to make the tax payment.