Chapter - 13 Return

Section 139(1) Assessee required to file return compulsorily Section 139(5) : Revised return Section 139(8A) : Updated return
Assessees quired to File Return 1. A Revised Return is a return that an assessee can file to correct An Updated Return is a return that allows an assessee to correct or update

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Mandatory for Companies & Firms irrespective of profit, loss, or any omission or wrong statement in the original return filed their income details within 24 months from the end of the relevant
nil income. under Section 139(1) or a belated return filed under Section assessment year, even if they have not filed any return earlier or have
Residents with Foreign Assets/Interests – Includes beneficial already filed an original, belated, or revised return.
139(4).
ownership, signing authority, etc., even if no taxable income. The provisions of updated return would not apply if
2. Time Limit for Filing a Revised Return

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Individuals, HUFs, AOPs, BOIs, Artificial Juridical Persons – If 1. It is a loss return.
total income (before deductions under Chapter VI-A, Sections
A revised return can be filed before the earlier of the following:
Three months before the end of the relevant assessment year
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2. It reduces total tax liability from the earlier return.
3. It results in or increases a refund.
54, 54B, 54D, 54EC, 54F) exceeds the basic exemption limit. For P.Y. 2023-24, the deadline is 31.12.2024. Assessee not allowed to file updated return if:
Other Persons (Not Company or Firm) Meeting Specific Criteria:

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Completion of the assessment by the Assessing Officer. 1. An updated return has already been filed for the same year.
Deposits in current accounts > ₹1 crore. Important Points 2. Any assessment, reassessment, recomputation, or revision is
Foreign travel expenses > ₹2 lakh. A belated return can also be revised under Section 139(5). pending or completed.
Electricity consumption > ₹1 lakh. 3. The person or class of persons is notified by CBDT as ineligible
The revised return replaces the original or belated return.

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Other prescribed conditions.
Additional Criteria for Compulsory Filing (If not otherwise
It allows correction of errors but should not be misused for tax Section 140B : Tax on Updated Return
evasion. 1. Tax, interest, fee, and additional tax must be paid before filing an updated
required under Section 139(1)):
Business Turnover > ₹60 lakh (previous year). Section 234A : Interest for default in furnishing return return under Section 139(8A).
2. Computation of Tax Payable (after adjusting the following):
Professional Gross Receipts > ₹10 lakh (previous year). Applicability of Interest ● Advance tax already paid.
TDS + TCS Aggregate ≥ ₹25,000 (for residents) / ₹50,000 Interest under Section 234A is payable if:

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● TDS/TCS deducted or collected.
(for senior citizens aged 60+). The return is filed after the due date, or ● Relief under Section 89 (for salary arrears, etc.).
Savings Bank Deposits ≥ ₹50 lakh (during previous year). No return is filed by the assessee. ● Tax credit under Section 115JD (if shifting from the default tax regime
Due Dates for Filing Return Rate & Calculation of Interest under Section 115BAC.

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31st October – Companies, entities requiring audit, and partners Simple interest @ 1% per month (or part of a month). 3.If no return was filed earlier:
● Interest under Section 234A applies on tax payable.
of firms requiring audit. Interest period: From the day after the due date until the earlier
● Payment of additional tax under Section 140B(3) is required.
30th November – Assessees required to file a report under of: 4.If a return was filed earlier under Section 139(1), 139(4), or 139(5):

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Section 92E (international transactions). Filing of the return (if filed late). ●Tax is payable after reducing interest already paid in earlier returns.
31st July – All other assessees. Completion of assessment (if no return is filed). ● The tax payable is increased by any refund received on the earlier return.

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Exception 5.Additional Income Tax on Updated Return:
Section 139(3) : Return of loss No interest is payable if the assessee has paid all taxes in full on ● 25% of total tax & interest if filed within 12 months from the end of the
or before the due date. relevant assessment year.
1.Loss Carry Forward Condition:

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● 50% of total tax & interest if filed between 12 to 24 months from the end
An assessee can carry forward or set off losses only if the return of the relevant assessment year.
is filed within the due date specified under Section 139(1) Section 140A : Self Assessment 6.Proof of payment of tax, additional tax, and interest must be
2.Exceptions: Self-assessment tax must be paid before filing a return under submitted with the updated return.
Loss from House Property and Unabsorbed Depreciation can be Section 139 after adjusting:
carried forward for set-off even if the return is filed after the 1. Tax already paid (Advance Tax/Self-Assessment Tax). Section 139A : Permanent account number (PAN)
due date. 2. TDS/TCS deducted or collected. PAN is mandatory for:

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3. Relief under Section 89 (for salary arrears, etc.). 1. All income tax returns and correspondence with tax authorities.
Section 139(4) : Belated return 4. Tax credit under Section 115JD (if shifting from the default 2. All tax payment challans under the Income Tax Act.
tax regime under Section 115BAC(1A)). 3. Specified transactions (as per CBDT), e.g., purchase of a vehicle, cash
1. A Belated Return is a return of income that is filed after the due payment over ₹50,000 at a hotel, etc.

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date specified under Section 139(1) but within the prescribed 5. Tax and interest payable under Section 191(2).
Interchangeability of PAN & Aadhaar: P
time limit. If the payment made under Section 140A(1) is insufficient, it is 1. If a person does not have a PAN but has Aadhaar, they can quote Aadhaar
2.Time Limit for Filing Belated Return adjusted in the following order: instead of PAN.
A belated return for a previous year can be filed before the 1. First – Fee payable. 2. If a person has PAN and has linked it with Aadhaar as per Section 139AA(2),
earlier of the following: 2. Second – Interest payable. they can use Aadhaar in place of PAN.
3. Third – Balance tax payable.
Three months before the end of the relevant assessment year Section 139AA : Quoting of Aadhaar
For P.Y. 2024-25, the deadline is 31.12.2025. Section 139(9) : Defective Return Aadhaar must be quoted in PAN application & income tax returns from 1st July
Completion of the assessment by the Assessing Officer. 2017.
If the Assessing Officer (AO) finds a defective return, he will
Thus, if the assessment is completed before 31st December 2025, If Aadhaar is not available, the Aadhaar Enrolment ID must be quoted.
notify the assessee. PAN-Aadhaar linking deadline: 31st March 2022 for those who had PAN as of
the return cannot be filed after that date.
The assessee must rectify the defect within 15 days of intimation 1st July 2017 and were eligible for Aadhaar.
Section 234(F) : Belated return (or within an extended period allowed by the AO). P
Penalty for non-linking by 31st March 2022: PAN becomes inoperative, and a
₹1,000 fee is payable as per Section 234H & Rule 114(5A).
If not rectified within the given period, the return is treated as
Fee for late filing of return under Section 139(1): ₹5,000. If Aadhaar is linked after 31st March 2022 (with fee payment), PAN becomes
invalid, and it is considered as if no return was filed. operative within 30 days.
Reduced fee to ₹1,000 if total income ≤ ₹5 lakhs.
If the defect is rectified after 15 days but before assessment, the Inoperative PAN consequences effective from 1st July 2023 (Circular No.
AO may condone the delay and treat the return as valid. 3/2023, dated 28th March 2023).

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