PRINCIPLES OF

TAXATION LAW PROJECT

Topic: “Return of Income (Section 139 of

Income Tax Act, 1961)”

Submitted To: Submitted By:

Mr. Meenal Yashika
286/19 (Section-F)
Semester – 10
B.Com. LL.B (Hons.)
 ACKNOWLEDGEMENT
I would like to express my gratitude to Mr. Meenal, my project in charge, who guided me through
the project and gave valuable suggestions and guidance for the completion of this project. He
helped me to understand the intricate issues in project making besides effectively presenting it. My
project has been a success only because of his constant guidance.

I am highly indebted to Prof. Shruti Bedi, Director, University Institute of Legal Studies, for
providing me with the opportunity to be able to make this project.

I would like to express my gratitude towards my parents & friends for their kind co-operation and
encouragement which helped me in completion of this project.

Yashika

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 TABLE OF CONTENTS

INTRODUCTION......................................................................................................................... 5

SECTION 139 OF INCOME TAX ACT, 1961 ........................................................................... 6

Section 139 (1) – Mandatory and Voluntary Returns ..................................................... 6

Mandatory furnishing of return in case of high value transactions [Proviso 7 to sec. 139(1)] 6

Compulsory filing of return in relation to assets located outside India [Proviso 4 and 5 to Sec.
139(1)] ..................................................................................................................................... 7

Due dates of filing of returns ................................................................................................... 8

Filing of return of income through employers [Section 139(1A)]: ......................................... 8

Voluntary Return...................................................................................................................... 9

The exception to a class or classes of the person from filing a return of income [Section
139(1C)]: ................................................................................................................................. 9

Section 139 (3) – Return of Loss ..................................................................................... 10

Section 139 (4) – Belated Return .................................................................................... 10

Time limit for filing belated return .........................................................................................11

Consequences of Belated Return ............................................................................................11

Section 139(5) – Revised Return ..................................................................................... 12

Time limit for filing revised return ........................................................................................ 12

Second revised return ............................................................................................................ 12

Section 139 (4A) – Return of Income of Charitable and Religious Trusts.................. 13

Penalty ................................................................................................................................... 13

Section 139 (4B) – Return of Political Party .................................................................. 13

Section 139 (4C) – Return of Research Association, etc. .............................................. 14

Section 139 (4D) – Return of University, College, or Other institution ...................... 15

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 Section 139 (4E) – Return of Business Trust ................................................................. 15

Section 139 (4F) – Return of Income from Investment Fund ...................................... 15

Section 139(9) – Defective or Incomplete Return.......................................................... 15

Effect of defective return ....................................................................................................... 17

Section 139(8A) – Updated Return ................................................................................. 18

Time limit to file updated return ............................................................................................ 18

Exception ............................................................................................................................... 18

PRESCRIBED FORMS FOR FILING RETURN OF INCOME (RULE 12 OF INCOME

TAX RULES, 1962) ..................................................................................................................... 19

CONCLUSION ........................................................................................................................... 21

BIBLIOGRAPHY ....................................................................................................................... 22

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 TABLE OF CASES

1. Balchand v. ITO, (1969) 72 ITR 197 (SC) ........................................................................11

2. CIT v. Samson Distilleries (P) Ltd, (2006) 9 SOT 24 (Bang.). ........................................ 12
3. Waman Padmanabh Dande v. CIT, (1952) 22 ITR 339 (Nag). ......................................... 13

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 INTRODUCTION

The Income Tax Department of India has classified the income of an Indian citizen into five broad
categories based on income sources. These five categories are mainly salary, house property,
business, capital gains, and other sources. Every person with income is supposed to pay an income
tax to the government and is required to file their tax returns within a fixed deadline.

Income Tax Return or ITR is a form used to show your gross taxable income for the given fiscal
year which is submitted to the Income Tax Department of India. The form is used by taxpayers to
formally declare their income, deductions claimed, exemptions and taxes paid. 1 Therefore, it
calculates your net income tax liability in a fiscal year, i.e, pertaining to a particular financial year,
i.e. starting on 1st April and ending on 31st March of the next year.

Section 139 of the Income Tax Act, 1961 deals with the filing of return of income which falls
under ‘Chapter XIV - Procedure for assessment’ of the Income Tax Act, 1961. The section is
divided into several categories to deal with different types of returns, and every Indian citizen is
advised to follow these guidelines.

Section 139 of Income Tax Act also acts as a framework for filing defaulted returns that the
taxpayer has not filed for the same within the set timeline. There are several sub-sections of this
section that are designed to deal with non-submission of tax returns within the prescribed time
frame by different types of tax assesses. This section offers means to rectify the non-submission
of Income Tax Returns within the timeline by different types of tax assesses.

This project report on ‘Return of Income’ encompasses detailed discussion on Section 139 in
its entirety.

1
What is an Income Tax Return?, available at: https://www.hdfclife.com/insurance-knowledge-centre/tax-saving-
insurance/what-is-income-tax-return (Last visited on February 24, 2024).

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 SECTION 139 OF INCOME TAX ACT, 1961

• Section 139 (1) – Mandatory and Voluntary Returns

Section 139(1) of Income Tax Act, 1961 (hereinafter, referred to as Act) provides that the following
persons are under obligation to file return of income on or before the due date in the prescribed
form and prescribed manner:

1. Company or Firm: Firm here includes LLP (Limited Liability Partnership) as created
under the Limited Liability Partnership Act, 2008 or Unlimited Liability Partnership. Every
company or a firm shall furnish the return in respect of its income or loss in every previous
year. Meaning thereby, it shall file return irrespective of size of income, i.e, even where
there is a loss.

2. Any person other than the company or 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 income-tax, i.e, exceeds basic
exemption limit, then such person is mandatorily required to file return. However, any other
person means an individual/ HUF (Hindu Undivided Family)/ AOP (Association of
Persons)/ BOI (Body of Individuals)/ any other artificial juridical person. Further, all
persons whether they are resident o non-resident during the relevant previous year are
covered under section 139(1).
Proviso 6 to Section 139(1) further provides that any person other than company or firm
shall file return 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, 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 exceeded exemption limit.

Mandatory furnishing of return in case of high value transactions [Proviso 7 to sec. 139(1)]

It provides that a person (other than firm and company), who is not required to furnish a return as
per aforesaid provision, and who during the previous year:
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 a) has deposited an aggregate amount exceeding Rs.1 crore in one or more current accounts
maintained with a banking company or a co-operative bank; or
b) has incurred expenditure of an aggregate amounts exceeding Rs.2 lakhs for himself or any
other person for travel to a foreign country; or
c) has incurred expenditure of an aggregate amount exceeding Rs.1 lakhs towards
consumption of electricity; or
d) fulfils such other conditions as may be prescribed,

shall furnish a return of his income on or before the due date in such form and verified in such
manner and setting forth such other particulars, as may be prescribed.

Compulsory filing of return in relation to assets located outside India [Proviso 4 and 5 to Sec.
139(1)]

It provides that any person, being resident other than not ordinarily resident, who is not required
to furnish return under his sub-section, shall furnish a return within due date in respect of his
income or loss for the previous year, if he during the previous year:

i. 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;
or
ii. is a beneficiary of any asset (including any financial interest in any entity) located outside
India.

However, Proviso 5 provides for an exception stating that an individual, being a beneficiary of any
asset (including any financial interest in any entity) located outside India where, income, if any,
arising from such asset is includible in the income of the person referred above in accordance with
the provisions of this Act (i.e beneficial owner)

“Beneficial owner” in respect of an asset means an individual who has provided, directly or
indirectly, consideration for the asset for the immediate or future benefit, direct or indirect, of
himself or any other person.

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“Beneficiary” in respect of an asset means an individual who derives benefit from the asset during
the previous year and the consideration for such asset has been provided by any person other than
such beneficiary.

Due dates of filing of returns

Persons Due Dates (of

assessment year)
1. Company October 31
2. Any person other than the company (including working partner of
a firm) who is required to audit his account under this act or any October 31
other law for the time being in force.
3. Any other person (including non-working partner of a firm) July 31
4. Where taxpayer (Corporate or non-corporate) has international November 30
transaction

Filing of return of income through employers [Section 139(1A)]:

The Scheme is optional and provides an additional mode of furnishing return of income by persons
deriving salary income. Under the scheme, eligible employees may file return of income through
their employers provided following conditions are fulfilled:

i. Assessee must be an "eligible employee". Eligible employee means a person who is

working with an eligible employer and assessed to tax at specified cities given for this
purpose.
ii. He must be working under "eligible employer". Eligible employer means a person:
a) Who has minimum 50 employees assessed to tax at any of the specified cities.
b) Who has been allotted tax deduction account number (TAN).

Specified cities: Ahmedabad, Bangalore, Baroda, Bhopal, Chandigarh, Chennai, Delhi,

Gandhinagar, Hyderabad, Jaipur, Jabalpur, Kolkata, Mumbai, Nagpur, Pune and Thane.

Then, in such case, the eligible employee may furnish return of income in prescribed form together
with the required documents to his eligible employer. Such employer shall furnish e-returns ,

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received by him on or before due date, by transcribing the data of such returns on computer
readable media using authorized Bulk Return Preparation Software (BRPS).

Such returns filed by the employer shall be deemed to be returns filed by the employee under
section 139(1).

Exceptions: However, following returns shall not be furnished under the scheme –

a) Return of income for any Assessment Year other than the current Assessment Year;
b) Return of income where no PAN or incorrect PAN of the employee has been quoted;
c) Return under block assessment;
d) Return of an employee having more than one employer during the previous year;
e) Return of employee who is not in receipt of his salary from the ‘eligible employer’ as on
the last day of the previous year, for which the return is being furnished;
f) A revised return of income.

Voluntary Return

In certain situations, individuals or entities are not under compulsory requirement to file the return.
In such cases their tax filings are considered as Voluntary returns, which are seen as valid tax
returns.

The exception to a class or classes of the person from filing a return of income [Section
139(1C)]:

This section provides that notwithstanding anything contained in sub-section (1), the Central
Government may, by notification in the Official Gazette, exempt any class or classes of persons
from the requirement of furnishing a return of income having regard to such conditions as may be
specified in that notification.

After issuing notice under Section 139(1c), it should be placed before each House of Parliament
for 30 days when the sessions go on immediately following the notification. Upon agreement from
both the Houses, modification will be done in the notification and will be effective. Otherwise,
notification will be ineffective.

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 • Section 139 (3) – Return of Loss

In case of an Individual Tax payer, if any loss was incurred in the previous financial year, then
filing a tax return is not mandatory. Tax return for loss is compulsory for companies and firms.
Return of loss is compulsory for carrying forward a loss. It should be filed the prescribed form, on
or before the due date mentioned under section 139(1). The following losses cannot be carried
forward if the return of loss is not submitted within the time allowed u/s 139(1) –

a) Loss under the head “Profit or gains of business or profession”

b) Loss under the head “Capital Gain”
c) Loss from the activity of owning and maintaining race horses.

However, unabsorbed depreciation u/s 32 and loss under the head “Income from house property”
can be carried forward even if the loss return is filed after the due date u/s 139(1). Furthermore,
loss of the earlier years could be carried forward if the return of losses for those years were filed
with due dates and those losses were assessed.2

Any delay in filing return of loss can be condoned by the following Competent Income Tax
Authority:

Quantum of Loss IT Authority to give prior permission to

Assessing Officer to condone the delay
1. Where it does not exceed Rs.10,000 CIT (Commissioner of IT)
(upto Rs. 10,000)
2. Where it exceeds Rs. 10,000 but does CCIT (Chief Commissioner IT) or
not exceed Rs. 1,00,000 DGIT (Director General IT)
3. Where it exceeds Rs. 1,00,000 CBDT (Central Board of Direct Taxes)

• Section 139 (4) – Belated Return

If an assesse fails to file return within the time limit allowed u/s 139(1) of the act or within the
time allowed under a notice issued u/s 142(1) of the act, he can file a belated return.

2
Dr. Jyoti Rattan, Taxation Laws 515 (Bharat Law House Pvt. Ltd., New Delhi, 14th edn., 2021).

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Time limit for filing belated return
Assessee may file such return –

i. before the end of the relevant assessment year; or

ii. before the completion of assessment (u/s 144),

whichever is earlier.

“Assessment” under section 139(4) of the act refers to Best Judgment Assessment under section
144 as no other assessment be made unless a return of income is filed.

It was held in case of Balchand v. ITO3, that completion of assessment means the date on which
the order of assessment is passed and not the date of service of the order upon the assessee.
Therefore, a return of income submitted after the completion of assessment but before the service
of notice is invalid.

Example: Assessee failed to respond to notice u/s 142(1), served on 5/11/2021 (time allowed in
such notice to submit return is 5/12/2021) and assessment u/s 144 is completed on 7/3/2022.
However, assessee has received the assessment order on 5/4/2022.

In this case, he can file belated return for the PY 2020-21 by 7/3/2022.

Consequences of Belated Return

If a return is not filed on or before the due date but a belated return is filed by the assessee then:

1) Assessee shall be liable to pay interest under section 234A of the act i.e. simple interest @
1% per month or part of a month from the date immediately after the due date till:
• Date of furnishing the return, where the return is furnished after the due date; or
• Date of completion of assessment under section 144, where no return is furnished.
2) A penalty of 5000 under section 271F, if a belated return is filed after the end of the relevant
assessment year.
3) Deduction under sections 10A, 10B, 80-1A, 80-1AB, 80-IB, 80-IC and 80-ID will not be
permitted.

3
Balchand v. ITO, (1969) 72 ITR 197 (SC).

11
 4) If the return of loss is submitted after the due date then a few losses cannot be carried
forward further.
5) He would be liable to fee u/s 234F which provides:
Case Fee (in Rs.)
Total income does not exceed Rs. 5 lakhs 1000
Total income exceeds Rs. 5 lakhs
• If the return is furnished on or before 31st December of the 5000
assessment year
• In any other case 10,000

• Section 139(5) – Revised Return

Any person, having furnished a ROI under sub-section (1) of section 139 or sub section (4) of
section 139, discovers any omission or any wrong statement therein, may furnish a revised return
u/s 139(5). Once a revised return is filed, it replaces the earlier return. This signifies that the revised
return should be complete in itself and not merely an accessory to the original return.

Time limit for filing revised return

Assessee may file the revised return –

• before the end of the relevant assessment year; or

• before completion of regular assessment, - whichever is earlier.

Second revised return

A second revised return can be filed by the assessee if there is any omission or wrong statement in
the first revised return. The limitation period for filing the second revised return is the same as for
the first revised return i.e. before the completion of assessment; or the end of the relevant
Assessment Year, whichever is earlier.

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In the case of CIT v. Samson Distilleries (P) Ltd4, the court held that an assessee can file a revised
return as many times as it is within the limitation period and the assessee finds any omission or
wrong statement in it.

Furthermore, it is a right of the assessee to file a revised return, therefore, an application under
this Section seeking permission to revise the original return filed by the assessee is not required as
held in Waman Padmanabh Dande v. CIT5.

• Section 139 (4A) – Return of Income of Charitable and Religious Trusts

Every person who is in receipt of –

1) income from property held under the trust or other legal obligation wholly or partly for
charitable or religious purpose; or
2) income by way of voluntary contribution on behalf of such trust or institution referred to
in Sec. 2 (24)(iia),

and if such income before allowing exemption u/s 11 or 12 exceeds the maximum amount which
is not chargeable to tax, must file a return of such income of previous year in the prescribed form
and verified in the prescribed manner and setting forth such other particulars as may be prescribed
before the due date as per sec.139(1). As far as may be, all the provisions of this act shall apply as
if it were a return required to be furnished under sub-section (1).

Penalty
Where an assessee fails to file return of income under this section, within the time limit, it shall be
liable to pay a penalty of Rs.100 per day during which such failure continues [Sec. 272A(2)].

• Section 139 (4B) – Return of Political Party

The chief executive officer (whether such chief executive officer is known as Secretary or by any
other designation) of any political party is required to furnish a return in respect of income of such

4
CIT v. Samson Distilleries (P) Ltd, (2006) 9 SOT 24 (Bang.).
5
Waman Padmanabh Dande v. CIT, (1952) 22 ITR 339 (Nag).

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political party, if the amount of gross total income before allowing exemption u/s 13A exceeds the
maximum amount not chargeable to tax.

• Section 139 (4C) – Return of Research Association, etc.

Section 139(4C) provides that every –

▪ Research Association referred to in sec. 10(21);

▪ News agency referred to in sec. 10(22B);
▪ Association or institution referred to in sec. 10(23A) or sec. 10(23B);
▪ Specified Employee Welfare Fund referred to in sec. 10(23AAA);
▪ Any university or other educational institution referred to in sec. 10(23C)(iiiad) or (iiiab);
▪ Any hospital or other medical institution referred to in sec. 10(23C)(iiiae) or (iiiac);
▪ Fund or institution referred to in sec. 10(23C)(iv);
▪ Trust or institution referred to in sec. 10(23C)(v);
▪ Any university or other educational institution referred to in sec. 10(23C)(vi);
▪ Any hospital or other medical institution referred to in sec. 10(23C)(via);
▪ Mutual Fund referred to in sec. 10(23D);
▪ Securitisation trust referred to in sec. 10(23DA);
▪ Investor Protection Fund referred to in sec. 10(23EC) or sec. 10(23ED);
▪ Core Settlement Guarantee Fund referred to in sec. 10(23EE);
▪ Venture Capital Company or Venture Capital Fund referred to in sec. 10(23FB);
▪ Trade union or an association of such union referred to in sec. 10(24);
▪ Body or authority or Board or Trust or Commission referred to in sec. 10(46) or 10(29A);
▪ Infrastructure debt fund referred to in sec. 10(47),

must file a return, if the total income without giving effect to the provisions of sec. 10, exceeds the
maximum amount which is not chargeable to income-tax.

The institutions that come under Section 139(4c) intend to claim tax exemptions as per the
following clauses under of Section 10: Clauses are: 21, 22B, 23A, 23C, 23D, 23DA, 23FB, 24, 46
and 47.

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 • Section 139 (4D) – Return of University, College, or other Institution

Every university, college, or other institution referred to in section 35(1), is not required to furnish
a return of income or loss under any other provision of this section, shall furnish the return in
respect of its income or loss in every 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).

• Section 139 (4E) – Return of Business Trust

Every business trust, which is not required to furnish a return of income or loss under any other
provisions of this section, shall furnish the return of its income in respect of its income or loss in
every previous year and all the provisions of this Act shall, so far as may be, apply if it were a
return required to be furnished under sub-section (1).

• Section 139 (4F) – Return of Income from Investment Fund

Every investment fund referred to in sec. 115UB, which is not required to furnish return of income
or loss under any other provisions of this section, shall furnish the return of income in respect of
its income or loss in every 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 u/s 139(1).

• Section 139(9) – Defective or Incomplete Return

A return of income shall be regarded as defective in the following cases:

a) Return form not properly filled: It is important to note that various income tax return forms
must be filled in a manner prescribed in the form, however, where a particular column is
not relevant to the assessee, then he must mention "NA" and no column should be left
blank. Therefore, where any column or row is left blank then such return shall be deemed
to be defective.

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b) Return without self-assessment tax: From the assessment Year 2019-20, a return is treated
as defective if sein-assessment tax and the interest payable under Section 140A have not
been paid on or before the date of filing the return.

c) Annexures statements and columns not properly filled: A few statements, reports, proof of
pre-paid taxes, accounts, other documents, etc. should accompany the return of income,
otherwise the return will become defective.

The return is accompanied by the following documents –

i. a statement showing the computation of tax liability;
ii. the audit report u/s 44AB (where the report has been submitted prior to the
furnishing of return, a copy of audit report together with proof of furnishing the
report);
iii. the proof of tax deducted or collected at source, advance tax paid and tax paid on
self-assessment; d. where regular books of account are maintained by the assessee:
a. copies of Manufacturing A/c, Trading A/c, Profit and Loss A/c or Income and
Expenditure A/c or any other similar account and Balance Sheet;
b. in the case of –
▪ A proprietary business or profession - the personal account of the proprietor;
▪ A firm, AOP or BOI - personal account of the partners or members; or
▪ A partner or member of the firm, AOP or BOI - his personal account in the
firm, association of persons or body of individuals

where regular books of account are not maintained by the assessee –

iv. where regular books of account are not maintained by the assessee:
a. a statement indicating the amount of turnover or gross receipts, gross profit,
expenses and net profit of the business or profession and the basis on which such
amount have been computed; and
b. the amount of sundry debtors, sundry creditors, stock and cash balance as at the
end of the previous year.

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 v. where the accounts of the assessee have been audited, copies of the audited Profit
and Loss A/c, Balance Sheet and a copy of the Auditor’s report;
vi. Cost audit report u/s 233B of the Companies Act, 1956 (if any).

However, it is to be noted that currently, the assessee is required to furnish paper-less return. i.e.,
no documents, proof or report (other than some specified report required to be furnished
electronically) is required to be attached with return of income. In this regard, return of income
shall not be considered as defective return as it is not possible to attach proof of pre-paid taxes
(like tax dedudcted/collected at source, self-assessment tax etc). However, the assessee should
retain these documents, proof or report with himself. If called for by the income-tax authority
during any proceeding, it shall be incumbent upon the assessee to furnish/produce the same.

d) Where an Updated return is not accompanied by the proof of payment of tax: If the updated
return of income is furnished under section 139(8A), then it must be accompanied by the
proof of payment of tax as required under section 140B. Therefore, where such proof is not
given, it will be treated as a defective return.

Effect of defective return

Where the Assessing Officer considers that the return of income furnished by the taxpayer is
defective, he may intimate the defect to the taxpayer and give him an opportunity to rectify the
defect(s). The following procedure needs to be followed:

• The assessee must rectify the error within a period of 15 days from the date of intimation
(served on the assessee) or within such extended time as allowed by the Assessing Officer.
Where the taxpayer rectifies the defect after the expiry of the period of 15 days or such
extended period but before the assessment is completed, the Assessing Officer can condone
such delay.
• If defect is not rectified within the time limit, the Assessing Officer will treat the return as
an invalid return and provisions of the Act will apply as if the taxpayer had failed to furnish
the return at all.

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 • Section 139(8A) – Updated Return

Section 139 (8A) of the act provides that any person, whether or not he has furnished a return
under section 139(1) or (4) or (5), for an assessment year (as the relevant assessment year), may
furnish an updated return of his income or the income of any other person in respect of which he
is assessable under this Act, for the previous year relevant to such assessment year. Such an
updated return is to be filed in the prescribed form, verified in such manner and setting forth such
particulars as may be prescribed.

Time limit to file updated return

Such a return can be filed at any time within twenty-four months from the end of the relevant
assessment year.

Exception
Provided that the provision of this sub-section shall not apply if the updated return:

a) is a return of a loss; or
b) has the effect of decreasing the total tax liability determined on the basis of return
furnished under 139(1) or (4) or (5); or
c) results in a refund or increases under 139(1) or (4) or (5), the refund due on the basis of
return furnished

of such person under this Act for the relevant assessment year.

18
 PRESCRIBED FORMS FOR FILING RETURN OF INCOME
(RULE 12 OF INCOME TAX RULES, 1962)

NEW ITR FORMS PERSONS

ITR 1 Sahaj Form ITR 1 Sahaj is to be used for filing of Income Tax Return
by resident individuals (other than not ordinarily resident)
having total income upto Rs. 50 lakhs, having Income from
Salaries, one house property, other sources (Interest, etc.), and
agricultural income upto Rs. 5 thousand. IT 1 is not to be used
by an individual who is either Director in a company or has
invested in unlisted equity shares or in cases where TDS has
been deducted u/s 194N or if income-tax is deferred on ESOP.
ITR 2 Form ITR 2 is to be used for filing of Income Tax Return by
Individuals and HUFs not having income from profits and
gains from business or profession.
ITR 3 Form IT 3 is to be used for filing of Income Tax Return by
individuals and HUFs having income from profits and gains
from business or profession.
ITR 4 Form IT 4 Sugam is to be used for filing of Income Tax Return
by resident Individuals, HUFs and Firms (other than LLP)
having total income upto Rs.50 lakh and having income from
business and profession which is computed under sections
44AD, 44ADA or 44AE (i.e. presumptive taxation schemes).
However, IT 4 is not to be used by an individual who is either
Director in a company or has invested in unlisted equity shares
or if income-tax is deferred on ESOP or has agricultural income
more than Rs.5000.

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ITR 5 Form IT 5 is to be used for filing of Income Tax Return by
persons other than individual, HUF, company and those who
are required to file ITR 7
ITR 6 Form IT 6 is to be used for filing of Income Tax Return by
Companies other than the companies which are claiming
exemption under section 11 of the Income Tax Act, 1961
ITR 7 Form IT 7 is to be used for filing of Income Tax Return by
persons (including companies) required to furnish return under
sections 139(4) or 139(4B) or 139(4C) оr 139(4D) only.
ITR V - Acknowledgement Form IT V Acknowledgement is issued by the Income Tax
Deptt., as a token of receipt of duly filed Income Tax Returns.
Therefore, where return of income is filed electronically in
Forms ITR - 1, ITR - 2, ITR - 3, ITR - 4, ITR - 5, IT - 6 and
ITR - 7 without digital signature then physical return is to be
filed in ITR - V within 15 days from the date of
acknowledgement of e-return.

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 CONCLUSION

Income tax plays a very important role in the growth of a country. It is the main source of income
for the government. The amount is used to pay salaries, welfare schemes, government projects,
defence, etc. To ensure that every taxable entity pays its dues to the government, taxpayers need
to file Income Tax Returns (ITR) along with the tax amount.

Income Tax Return is very important as it helps to claim TDS refunds, makes your loan
applications easier to process, and helps you to carry forward any losses. An assesse is required to
file an ITR to claim deductions and exemptions under the Income Tax Act, 1961. Section 139 of
Income Tax Act, 1961 is relevant when taxpayers who have failed to file their income tax returns
within the stipulated time period. Certain amendments to Section 139 of the Income Tax Act have
been made in recent years to facilitate information exchange. There are various provisions to
conveniently review defective forms for various taxpayers and also for revision of scope. The
special provisions must also be noted in their separate categories and all documents must be
produced for the acceptance of the form. This essential task has now been made easier and
convenient by the latest online portals so that someone can check their entire accounts at once and
perform the tax payment duties quite easily.

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 BIBLIOGRAPHY

Statutes Referred:

• Income Tax Act, 1961

• Income Tax Rules, 1962

Books Referred:

• Dr. Jyoti Rattan, Taxation Laws (Bharat Law House Pvt. Ltd., New Delhi, 14th edn., 2021)

Articles Referred:

• Intermediate Paper -7, Direct Taxation ( The Institute of Cost Accountants of India, March
2021)

Websites Referred:

• https://tax2win.in/guide/section-139-of-income-tax-act
• https://www.paisabazaar.com/tax/section-139-of-income-tax-act/
• https://www.hdfclife.com/insurance-knowledge-centre/tax-saving-insurance/what-is-
income-tax-return
• https://www.iciciprulife.com/insurance-library/income-tax/what-is-itr.html

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