FILING OF

INCOME TAX RETURN

By:-
R. P. Singh
SECTION 139(1): OBLIGATION TO
FILE RETURN OF INCOME

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 due date, furnish a return of his income
or the income of such other person during the previous year
in the prescribed form and verified in the prescribed
manner and setting forth such other particulars as may be
prescribed.
 139 (1) fourth proviso

• A person, being a resident other than not ordinary

resident in India within the meaning of clause 6 of
Section 6, who is not required to furnish a return
under section 139(1) 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: or
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 for
the previous year in such form and verified in
such manner and setting forth such other
particulars as may be prescribed.
 139 (1) fifth proviso
Every person, being –
• a) an individual, or
• b) a HUF, or
• c) an Association of persons or a body of individuals, whether incorporated or not, or
• d) an artificial judicial person,
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), 10(A), 10B, 10BA, or provisions of chapter VIA (deduction under section
80C to 80U) exceeded the maximum amount which is not chargeable to income tax shall,
on or before the due date to furnish a return of his income or income of any other person
during the previous year, in the prescribed form and in the prescribed manner.
• Note: Point c above cover every company, domestic or foreign company (having some
business connection in India or some operating income in India) either the certificate of
commencement of business is received or not, defunct (मृत)company and also a private
limited company which has not yet started the business
 DUE DATE
(a) Where the assesse is[other than refer in
clause(b)]-
i. A company; or
ii. A person(other than a company) whose accounts are required to be
audited under the income tax act or under any other law.
iii. A working partner of a firm whose accounts are required to be audited
under the income tax act or under any other law.
- Due Date shall be 30th September of Assessment Year.
(b) In case of an assesse who is required to furnish report of transfer pricing
under section 92E.
- Due Date shall be 30th November of the Assessment Year.
(c) In case of any other assesse- Due date shall be 31st July of Assessment
Year.
 Mandatory for e-filing

Electronic Filing of Return: - It is mandatory for the following assesses to file the return
electronically.

i. All companies(with digital signature).

ii. Partnership Firms, Individual and HUFs subject to tax audit under 44AB(with digital
signature).
iii. An individual or HUF whose total income exceed Rs 5 lakhs( Digital signature are
optional).
 Section 139 (3) – Return of loss:
If a person who has sustained a loss in any previous year under the head “profit and
gain of business or profession” or under the head “capital gains” and claims that
such loss or any part thereof should be carried forward under section 72(1) /
73(2) / 73A(2) / 74(1) and (3) or 74A(3) then he may furnish a return of loss within
the time prescribed under section 139(1) and all the provisions of this Act shall
apply as if it were a return under section 139(1).

Important to note:
• Loss on account of house property can be carried forward even if the return is
submitted late.
• Unabsorbed depreciation can also be carried forward even if the return is
submitted late.
• Loss of current previous year cannot be carried forward unless the return of loss is
submitted before the due date but loss of other years for which return of loss was
filed within due date can be carried forward.
 Section 139 (4) – Belated Return:
Any person who has not furnished a return within
the time allowed u/s 139 (1), may furnish the
return for any previous year at any time :
i) before the end of the relevant assessment year; or
ii) before the completion of assessment (assessment
here means assessment u/s 144 i.e. best
judgement assessment)
• whichever is earlier.
 Section 139 (5) – Revised return:
If any person, having furnished a return under section
139(1) or section 139(4), discovers any omission or any
wrong statement therein, he may furnish a revised
return at any time before the expiry of one year from
the end of the relevant assessment year or before the
completion of the assessment, whichever is earlier.
• However as per amendment made by Finance Act, 2017,
revised return can now be submitted before the end of
the relevant assessment year or before the completion
of the assessment, whichever is earlier.
• Important Note:
• Return filed in response notice u/s 142(1) can be
revised, if the same is filed within time allowed in
notice u/s 142(1).
• A revised return can be revised multiple times
within the time allowed.
• Revised return substitutes the original return.
• An application or letter to Assessing Officer
cannot constitute the revised return.
 Section 140 – Verification of Return:

a) Individual –
i) By individual himself
ii) he is absent from India, then by himself or by authorised person
iii) If he is mentally incapacitated (अक्षम)– by his guardian or any
other competent person to do so
iv) In case of his inability – by any person duly authorised by him
b) HUF (Hindu undivided family) – by karta himself and where
karta is absent / mentally incapacitated then by any other adult
member of the family
c) Company –
i) by managing director or in case of his inability / absence by any director
ii) in case of the company being wound up – by liquidator
iii) in case of a company whose management is taken over by Central / State
Government – by principal officer thereof
iv) in case of company which has admitted application for corporate insolvency
resolution – by appointed insolvency professional
d) Firm – by managing partner or in case of his inability / absence by any
partner
e) LLP (Limited liability partnership) – by designated partner or in case of his
inability / absence by any partner
f) Local Authority – by principal officer
g) Political party – by chief executive officer
h) Any other association – by any member of the association or principal
officer
i) Any other person – i) by that person or ii) any other competent person on
his behalf
 Consequences of not filing the return
i) Interest for default in filing the return u/s 139(1) or 139(4)
or in response to notice u/s 142(1) – section 234A(1)
Interest is payable @1% p.m. for every month or part of
month
• a) Where the return of income is furnished after the due
date specified u/s 139(1) – from date immediately following
the due date till the date of furnishing the return.
• b) Where the return of income is not furnished– from date
immediately following the due date till the date of
completion of best judgement assessment u/s 144
ii) Late fees – u/s 234(F) w.e.f. AY 2018-19
• Where return u/s 139 is not furnished within in time
prescribed u/s 139(1), he shall pay, by way of fee, a
sum of –
a) Rs. 5000/- if the return is furnished on or before 31st
December of the assessment year
b) Rs. 10000/- in any other case
• However this penalty shall not exceed Rs. 1000/-
where total income of person does not exceed Rs.
5,00,000 /-
iii) Prosecution
• Willful failure to file return may attract prosecution u/s
276CC.
iv) In case of charitable trust and institutions / other
association and institutions there is a penalty of Rs. 100 per
day u/s 272A(2) for delay in filing the return.
v) In case of Political party exemption u/s section 13A shall not
be allowed unless it furnishes the return of income.
vi) In case of charitable trust and institutions exemption u/s
section 11 and 12 shall not be allowed unless it furnishes the
return of income.
 Understanding PAN
Permanent Account Number(PAN) is a code that acts as identifications of
Indians, especially for those who pay income tax. It is 10–character alpha
numeric identifier issued to all judicial entities identifiable under the income
tax act 1961.
Take a look at image below for better understanding: -
The fourth character of the PAN must be one of the following, depending on
the type of assesse:-

Code Type of Assesse

C Company
P Person
H HUF(Hindu Undivided Family)
F Firm
A Association of Person(AOP)
T AOP(Trust)
B Body of Individual(BOI)
L Local Authority
J Artificial Judicial Person
G Government
 Specific section for different
category of Assessee
Income Tax Act has covered every type of assesse in its scope for the
purpose of filing of return. Following table gives a brief description of
sections under which different assesse falls: -

Section Type of Assesse

139(4A) ROI of charitable or religious Trust or Institution.

139(4B) ROI of political party.

139(4C) ROI of certain specified institution.

139(4D) ROI of research institute, college, or universities.

Types of Return
 10 STEPS TO FILE INCOME TAX
RETURN ONLINE
1. To e-file your income tax return, you will have to register
yourself on tax department's website using your personal
details. Your permanent account number (PAN) will be your
User ID.
2. There are two ways of e-filing your income tax return. First,
you can go to the download section and select the requisite
form, save it on your desktop and fill all the details. Click
on the generate XML. Then go to the website again and
click on the upload XML button. You will have to first log
into to upload the XML file saved on your desktop and
click on submit.
3. You can go to the Quick e-file section of the website. Log
in and select the form
and the assessment year for which you are filing return and
fill in all the details.
 10 STEPS TO FILE INCOME TAX
RETURN ONLINE
4.You have to select the forms on the basis of the source of
your income. In case of individual with salary or pension
income or income from one house property or income from
other sources excluding lottery, you have to select form ITR-1,
also known as SAHAJ. If you have capital gains, you will have
to file ITR-2.
5.You will have to keep a few documents such as your PAN
number, Form 16, your interest statement, tax deducted at
source (TDS) details and investments proofs handy while e-
filing your income tax return.
6.From this year an additional column has been added called
"AL" in which you will have to disclose the value of your asset
and liabilities at the end of the year, in case your income for
the year is more than Rs 50 lakh.
 10 STEPS TO FILE INCOME TAX
RETURN ONLINE
7.You can also download your Form 26AS, which is your
consolidated tax statement summarizing tax paid against
your PAN. You can validate your tax return with Form
26AS to check your tax liability.
8.On submitting the form, an acknowledgement number
is generated in case the return is submitted using digital
signature. If the return is submitted without a digital
signature, then an ITR-V is generated and is sent to your
registered Email ID. ITR-V is an acknowledgement that
your return has been submitted.
 10 STEPS TO FILE INCOME TAX
RETURN ONLINE
9.You will have to send the signed ITR-V to the
centralized processing center at Bengaluru within 120 days
of filing the return to complete the tax filing process.
10.You can also e-verify (don't have to send the ITR-V to
Bengaluru office) your return through electronic verification by
using the e-verify return option on the website. You can also use
net banking, Aadhaar-based one-time password to e-verify it.
(For more information income tax return, visit the following
link: https://www.incometaxindiaefiling.gov.in/home