Mandatory Income Tax Return Filing: Detailed Guide to Section 139(1) and Related Provisions
Filing an income tax return is not merely a procedural formality—it is a statutory obligation under the Income Tax Act 1961. Section 139(1) clearly lays down the circumstances in which an assessee must file a return of income within the prescribed due dates. This article explains those situations, due dates, extended conditions introduced by amendments, and special rules relating to loss returns.
1. Basic Obligation to File Return under Section 139(1)
Under Section 139(1) of the Income Tax Act 1961, every assessee whose total income for a previous year exceeds the basic exemption limit is required to file a return of income within the stipulated due date.
The “previous year” refers to the financial year (accounting year) immediately preceding the relevant assessment year. If the total income (before considering certain exemptions and deductions discussed later) crosses the threshold that is not chargeable to tax, filing a return becomes mandatory.
2. Due Dates for Filing Return of Income
The law prescribes different due dates depending on the nature and status of the assessee and the statutory requirements applicable to them.
2.1 Assessees Requiring Audit of Accounts
Where the assessee falls under any of the following categories and is required to get accounts audited under the Income Tax Act 1961 or under any other law (such as Companies Act 2013, Goods and Service Tax Act, Public Charitable Trust Act, Society Registration Act, etc.), the due date is:
- Company
- Limited Liability Partnership (LLP)
- Partnership Firm whose accounts are subject to audit under any applicable law
- Partners of such partnership firm, and their spouse, where provisions of
section 5Aapply to that spouse
Due Date: 31st October of the relevant assessment year
This extended timeline recognizes the additional compliance burden associated with statutory audits.
2.2 Other Assessees (Non-Audit Cases)
Any assessee who does not fall in the above category (for example, an individual not subject to audit, an HUF without audit requirement, etc.) must file the return of income by:
Due Date: 31st July of the relevant assessment year
2.3 Assessees Involved in Transfer Pricing (Section 92E)
Where an assessee, including a company, is required to furnish a report under section 92E in Form No. 3CEB in relation to international transactions or specified domestic transactions, a further extended due date is provided.
Due Date: 30th November of the relevant assessment year
This special timeline accounts for the detailed transfer pricing documentation and reporting obligations.
3. Additional Filing Obligation for Certain Resident Assessees (Foreign Assets)
The Finance Bill 2015 introduced an important expansion under the 4th proviso to Section 139(1). As per this amendment, certain resident assessees must file a return even if their income may not otherwise necessitate it.
3.1 Who Is Covered?
- A resident assessee,
- Not being “not ordinarily resident”,
- Who is otherwise not required to file a return under
Section 139(1),
is nevertheless required to furnish a return of income if, during the previous year, such person:
- Holds any asset located outside India,
- Whether as a beneficial owner or otherwise, or
- Has signing authority in any account located outside India; or
- Is a beneficiary of any asset situated outside India.