Section 139 (1) of Income Tax Act Seventh Proviso

Applicability, Due Dates & Return Filing

Taxpayers should know more about Section 139(1) of the Income tax act since it is the section under which they have to file their returns if they have missed filing within the due date.

Section 139(1) Seventh Proviso of Income Tax Act – An Overview

Filing taxes is mandatory for income over Rs. 2.5 lakh. Section 139(1) is crucial for late filers. Here are key provisions under Income Tax Act's Section 139(1):

– Compulsory and voluntary income tax returns.

– ITRs filed by charitable and religious organizations.

– ITRs filed in case of any losses.

– Revised ITR filing.

– ITR filing of political parties and entities seeking exemptions under Section 10.

– ITR filing by investment funds, business trusts and defective IT returns.

Section 139(1) of Income Tax Act Due Date

Those who do not require auditing or assessing of their books of accounts should file ITRs by the 31st of July for each assessment year. This category includes the following types of filers:

– Consultants.

– Salaried professionals or employees.

– Freelancers.

– Self-employed or professional individuals.

Section 139(1) of Income Tax Act – Mandatory Returns

The section covers both voluntary and mandatory IT returns. The following categories are required to file compulsory ITRs:

– Private, public, domestic or foreign firms/companies situated in the country or doing business here.

– Any person with total income surpassing the maximum limit for exemptions.

– All firms including Unlimited Liability Partnerships and also Limited Liability Partnerships or LLPs.

– Any Indian resident with assets situated outside India including financial shareholding of any foreign company.

– Any Indian resident with the signing authority for any account outside India.

– Any association of persons or AOPs, BOIs or bodies of individuals, and HUFs or Hindu Undivided Families.

Seventh Proviso of ITR Section 139(1)

The Indian Government has integrated new guidelines for tax return filing under this section. This was the seventh proviso to section 139(1) and was implemented on 1st April, 2020.

Certain categories of entities or people will have to file ITRs even while falling in the threshold for exemption, in case they undertake transactions of higher values. Now that you know what is 139(1) in income tax returns, you should read on for information on a few more aspects.

Those required to file ITRs under the Section 139(1) Seventh Proviso

– BOIs

– HUFs

– AOPs

– Individuals

– Artificial juridical persons

What transactions come under the Section 139(1) Seventh Proviso?

There are many types of transactions which have coverage under this Act. They include

– Total foreign travel expenditure surpasses Rs. 2 lakh.

– Total current account deposits surpass Rs. 1 crore in either one or multiple accounts.

– Payment of electricity bills surpassing Rs. 1 lakh. However, this is only applicable for the taxpayer himself or herself and not if he or she is paying bills for others in the family.

– Other transactions of higher values as per the guidelines of the CBDT (Central Board of Direct Taxes).

ITR Filing Procedure under Section 139(1)

– In the ITR form, under Part A-General Information, there is a column containing this question- Are you filing a return of income under the seventh proviso to Section 139(1) but otherwise not required to furnish return of income?

– You can either click yes or no, depending on what is applicable to you.

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