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Section 139(1) of The Income Tax Act, 1961 governs the provisions of Compulsory filing of Income Tax Return.

As per this section, companies and firms have to compulsorily file Income Tax return for every previous year on or before the due date.

Further, every person being an individual or a HUF or an AOP or BOI or an artificial person has to file Income Tax Return for every previous year on or before the due date, if his total income without giving effect to the exemptions or any deductions exceeds the basic exemption limit.

This section includes the responsibility of the taxpayer to file Income Tax Return within a time frame.

Section 139(3) states that Return of Loss should also be compulsorily filed on or before the due date. The term “loss” involves business loss, speculation loss, brought forward loss etc.

Since the company is a product of the Companies Act, 2013 it has an indefinite life until unless it is dissolved by the owners legally. The lifetime of any of its owners or managers does not limit it.

Section 139(4) comprises of “Belated Return” which is filed when any person fails to file his return within the given time frame.

This return should be filed at any time:

1. Before 3 months prior to the end of relevant assessment year;

2. Before the completion of assessment; whichever is earlier.

Section 139(5) covers the concept of “Revised Return” .

If any person after filing his return discovers any errors, omissions or any wrong information therein; then he can file a revised return any time:

1. Before 3 months prior to the end of relevant assessment year;

2. Before the completion of assessment; whichever is earlier.

This return can be filed for any required number of times within the given time frame. In this case, the latest filed return will replace all the returns filed earlier.

Section 139(9) covers “Defective Return”

Where the Assessing Officer (AO) considers that the return filed by assessee is defective, he may communicate the defect to him and give him an opportunity to rectify the defect within 15 days from the date of such intimation.The AO has the discretion to extend the time limit beyond 15 days on an application made by the assessee.

Income Tax Return is filed according to the source of income & how much income the assessee has earned.

Section 139(8A) Updated Return

This section is inserted by the recent budget on 02.02.2022.

Any person can file updated return within 2 years from the end of the relevant assessment year under new section 140B for return under section 139(8A):

i) When no return filed earlier OR

ii) When any return filed under 139(1) (Original Return) Or 139(4) (Belated Return) Or 139(5) (Revised Return).

It shall not apply, if the updated return,

i) is a return of a loss or

ii) has the effect of decreasing the total tax liability determined on the basis of return furnished under sub-section (1), subsection (4) or sub-section (5) or

iii) Results in refund or increases the refund due for the relevant assessment year.

Any procedure of search/seizure/proceedings under section 132 or 132A notice has been started against the assessee.

It is also proposed that an amount equal to 25% or 50% as additional tax on the tax and interest due on the additional income furnished would be required to be paid.