Types of Returns filed under Section 139 of Income Tax Act 1961
S.No. Section Title Effect/Remarks
1 139(1) Mandatory A ‘mandatory return’ is required to be filed
Return & by the following:
Voluntary Return a. Every company (whether domestic or
foreign, public or private)Every
company (whether domestic or foreign,
public or private)
b. Every firm (it includes unlimited
liability partnership firm as well as
LLP)
c. Every other person if his/its total
income* for the relevant financial year
exceeds the basis exemption limit.
*The term total income means total income
computed before allowing the benefit of
provisions of chapter VI-A and
10A/10B/10BA.
Where a person files his/its return of income
even where he/it is not required to file a
mandatory return, such return can be said to
be a ‘voluntary return’. It may be noted that
a voluntary return is also a valid return.
2. 139(3) Loss Return If an assessee has income under the head
‘profits & gains of business or profession’
or under the head ‘capital gains’ he/it shall
be required to file its return of income any
time before the expiry of the time limit of
section 139(1). If he/it does not do so the
right of carry forward of relevant loss shall
not be available however set-off benefit still
does not hamper.
A reading of section 139(3) also reveals that
losses under the head house property as well
as unabsorbed expenses like section 32(2)
does not effect on account of delayed filing of
return of income.
Compiled by CA Anoop Bhatia 1
3. 139(4) Belated Return Where an assessee could not file a return
within the time limit provided under section
139(1), he can file a belated return within 1
year from the end of relevant assessment
year or before completion of the
assessment whichever is earlier.
It must be noted the before completion of
assessment means that before making of an
assessment under section 144.
A belated return may attract penalty under
section 271F of the Income Tax Act 1961 of
Rs. 5,000/-. But a return of income which
was not mandatorily required to be filed
under section 139(1) shall not attract penalty
even if it is filed after the expiry of the
assessment year.
4 139(5) Revised Return Where an original return filed by the assessee
under section 139(1) or 142(1)(i) has certain
‘omission’ or ‘wrong statement’ in it, the
assessee can certainly file a revised return
within 1 year from the end of relevant
assessment year or before completion of
assessment whichever is earlier.
It may therefore be noted that a belated
return can’t be revised but a loss return if
filed within section 139(1) time limit can also
be revised.
5 139(4A) Return of Income Institutions claiming exemption under
of a Public section 11 & 12 of the Income Tax are
Charitable/Religi required to file their return mandatorily if
ous Institute their total income before giving effect to
provisions of section 11 &12 exceeds the
basic exemption limit.
6 139(4B) Return of a A political party is required to file its return of
Political Party income mandatorily if its total income
exceeds the basic exemption limit without
giving benefit of section 13A of the Income
Tax Act 1961.
Compiled by CA Anoop Bhatia 2
7. 139(4C) Certain specific An institution claiming exemption under
& institutions clause (21), (22B), (23A), (23B), (23C), (23D),
139(4D) claiming benefit (23DA), (23FB), (24), (46) or (47) of section 10
under section 10 is required to mandatory files its return of
of the Income Tax income if its total income exceeds the basic
Act 1961. exemption limit without giving benefit of
exemption.
8 139(4D) Institutions An institution referred to in section 35(1)(ii)
referred to in or (iii) are required to mandatory file their
Section 35(1)(ii) or return of income.
35(1)(iii) of the
Income Tax Act
1961
9 139(9) Defective Return A defective return is a return which contains
certain defect mentioned in the Explanation
to section 139(9). A return of income shall be
regarded as defective unless the following
conditions are fulfilled:
a. The annexure, statement and columns
in the return have been duly filled in.
b. The tax together with interest, if any.
Payable in accordance with section
140A has been paid on or before the
date of furnishing return.
Where the Assessing Officer considers that
the return of income furnished by the
assessee is defective, he may intimate the
defect to the assessee and give him an
opportunity to rectify the defect. If the
assessee rectifies the defect within the
permitted or extended period the return shall
be treated as valid otherwise it will become
invalid.
A study of above provisions will help you to find out the correctness or
otherwise of the following queries/statements. The statements given
hereunder are to enable you to check your understanding of the provisions:
a. Every assessee is mandatorily required to file its return of income
notwithstanding his/its total income exceeds the basic exemption limit.
b. Can a belated return be revised?
Compiled by CA Anoop Bhatia 3
c. Where an assessee files a belated return he will be denied to claim carry
forward of losses.
d. Non-payment of advance tax liability renders the return as defective return.
e. An assessee can file two returns of income for one particular assessment
year even.
f. An assessee filing belated return, losses the right to set off his business
losses against house property income.
g. A firm may choose to file or not its return of income if its business was not
operational during the relevant financial year.
Compiled by CA Anoop Bhatia 4
