Filing your Income Tax Return (ITR) is an essential responsibility for taxpayers in India. Income Tax Section 139(1) of the Income Tax Act, 1961, explains the rules for mandatory and voluntary filing of returns. It covers individuals, companies, and other entities.
ITR filing due date missed? What happens if you file belated income tax return
Missing the due date for filing your Income Tax Return (ITR) does not mean you completely lose the opportunity to file. The Central Board of Direct Taxes (CBDT) sometimes announces extensions, but these are limited and apply only in certain situations. For Assessment Year 2025–26, the due date was extended by one day, from 15th September to 16th September 2025, for taxpayers who do not require an audit. No further relaxation has been announced.
If you were unable to meet the due date, you still have an option to file your ITR later as a belated return. A belated ITR can be submitted until 31st December 2025. However, late filing is not free of consequences. While it ensures compliance with the law, there are added costs and restrictions that taxpayers should be aware of.
Filing your ITR after the due date means you could face penalties, higher tax outgo due to interest, and in some cases, limited tax benefits. Understanding the consequences can help you make informed decisions and avoid unnecessary losses.
Consequences of late filing:
Late fee: Under Section 234F, a penalty of up to Rs. 5,000 may apply. If your income is below Rs. 5 lakh, the fee is Rs. 1,000, but if it is above Rs. 5 lakh, the penalty increases to Rs. 5,000.
Interest charges: Interest may be imposed under Sections 234A, 234B, and 234C for delayed filing, short payment of advance tax, or deferment of advance tax.
Restriction on loss set-off: If you file late, you cannot carry forward most losses, except for unabsorbed depreciation and house property losses.
Refund delays: Belated returns may lead to slower processing of refunds.
Extra scrutiny: Filing late could increase the chances of your return being examined more closely by the Income Tax Department.
What is Section 139(1) of the Income Tax Act?
Section 139(1) of the Income Tax Act outlines who is legally required to file an Income Tax Return in India. It covers both mandatory and voluntary returns. Here are the key cases where filing under this section is necessary:
- Any individual whose total income exceeds the exemption limit must file their return before the due date.
- Companies—whether public, private, Indian, or foreign—operating in India must file their return.
- Firms, including Limited Liability Partnerships (LLP) or Unlimited Liability Partnerships (ULP), are also covered under this requirement.
- Indian residents who own assets abroad or are authorised signatories for foreign accounts must file a return, regardless of their income.
- HUFs (Hindu Undivided Families), AOPs (Association of Persons), and BOIs (Body of Individuals) are also required to file if their total income exceeds the tax-free threshold.
Section 139(1c) provides some relief. It allows certain categories of individuals to be exempt from filing returns, provided they meet specific conditions laid out by the government. These exemptions must be formally approved by both Houses of Parliament.
Additionally, voluntary returns can be filed by individuals whose income is below the taxable limit. Even though these returns are not required by law, they are treated as valid filings and can be useful in claiming refunds or carrying forward losses.Let’s look at who must file under this section.
Who needs to file ITR under Section 139(1)?
You must file an Income Tax Return if you fall into one of these categories:
1. For companies
All companies operating in India must file ITR, regardless of profit or loss. This includes:
- Public companies
- Private companies
- Domestic companies
- Foreign companies
2. For firms
Every firm, including:
- Limited liability partnerships (LLPs)
- Unlimited liability partnerships,
must file a tax return even if there is no taxable income.
3. For individuals
Individuals must file ITR if their total annual income exceeds the exemption limit:
- Below 60 years: Rs. 2.5 lakh
- Age 60–80 years: Rs. 3 lakh
- Above 80 years: Rs. 5 lakh
4. Residents with foreign assets
If you are an Indian resident, you must file a return if you:
- Own assets outside India
- Have financial interests in foreign entities
- Hold signing authority for a foreign bank account
5. Other entities
Entities like Hindu Undivided Families (HUFs), Associations of Persons (AOPs), and Bodies of Individuals (BOIs) must file ITR if their income exceeds the exemption limit.
Additional conditions requiring filing ITR
Even if your total income is less than the basic exemption limit, the Income Tax Act requires you to file a return if you meet any of the following conditions:
Large bank deposits: If you deposited Rs. 1 crore or more in one or more current accounts, or Rs. 50 lakh or more in one or more savings accounts, during the financial year.
Foreign travel expenses: If you spent more than Rs. 2 lakh in total on foreign travel for yourself or another person.
High electricity bills: If you spent more than Rs. 1 lakh on electricity during the year.
Business turnover or professional income: If the total turnover of your business exceeds Rs. 60 lakh, or professional receipts exceed Rs. 10 lakh.
TDS or TCS above limits: If the total Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) is Rs. 25,000 or more in a financial year (Rs. 50,000 or more in the case of senior citizens).
ITR filing deadlines under Section 139(1)
As per Section 139(1) of the Income Tax Act, individuals and entities not required to audit their accounts must file their ITR by 31 July of the relevant assessment year. This deadline applies to salaried individuals, freelancers, small business owners, and Hindu Undivided Families (HUFs). If their income exceeds the basic exemption limit, they are legally required to file their returns on time. Filing after this date may attract penalties under Section 234F. However, revised deadlines may occasionally be announced by the Income Tax Department in special cases.
Timely tax filing is crucial for maintaining good financial health, especially when planning significant investments like purchasing a home. If you are considering buying your dream home, Bajaj Finserv offers competitive rates starting from 7.45%* p.a with flexible tenure options. Check your loan eligibility and discover attractive home financing options. You may already be eligible, find out by entering your mobile number and OTP.
Penalties and fees for late ITR filing under Section 139(1)
If you fail to file your Income Tax Return by the due date specified under Section 139(1), you may have to pay a late fee of up to Rs. 5,000. However, if your total income is Rs. 5 lakh or less, the maximum penalty is reduced to Rs. 1,000. This fee is levied under Section 234F of the Income Tax Act. To avoid these charges, it’s important to file your return on or before the due date, even if your tax liability is nil or minimal.
Differences: Section 139(1) vs. 139(4) (Belated ITR)
Section 139(1) (Original ITR) |
Section 139(4) (Belated ITR) |
Mandatory filing for eligible taxpayers |
Voluntary filing after missing deadline |
Due by July 31 (or extended deadline) |
Due by December 31 (or extended deadline) |
No late fees if filed on time |
Late fees: Rs. 1,000 (<Rs. 5 lakh income) to Rs. 5,000 (≥Rs. 5 lakh) |
No interest charges |
1% monthly interest on unpaid tax (Section 234A) |
Allows loss carry-forward (except house property in new regime) |
No loss carry-forward (except house property) |
Can revise return later |
Cannot revise (only correct mistakes) |
Ideal for full tax benefits |
Last resort for late filers |
Voluntary returns under Section 139(1)
What if you are not required to file a return but still want to do so? You can file a voluntary return.
Voluntary returns are valid and can help you:
- Claim tax refunds
- Maintain a record of income for loans or visas
- Avoid issues with financial transactions
Key benefits of filing under Section 139(1)
Filing your ITR on time offers several advantages:
Legal compliance: Filing is a legal duty, and staying compliant avoids penalties.
Claim refunds: Excess taxes paid can be claimed as refunds only if you file your return.
Proof of income: ITR acts as proof of income, which is useful for loan approvals and visa applications.
Carry forward losses: If you file on time, you can carry forward business or capital losses to future years.
Having a properly filed ITR is essential when applying for major loans, particularly home loans. Your ITR serves as income proof and strengthens your loan application. If you are planning to buy a home, consider exploring home loan options from Bajaj Finserv with loan amounts up to Rs. 15 Crore* and EMIs starting at just Rs. 684/lakh*. Check your home loan eligibility and get personalised offers. You may already be eligible, find out by entering your mobile number and OTP.
Exemptions under Section 139(1c)
The central government can exempt certain groups from filing tax returns under Section 139(1c). However, these exemptions come with conditions:
- The exemptions must be approved by both Houses of Parliament.
- They remain valid only if Parliament agrees.
Consequences of not filing mandatory returns
Missing the deadline for filing mandatory returns can lead to:
1. Late filing fees (Section 234F):
- Rs. 1,000 if your income is up to Rs. 5 lakh.
- Rs. 5,000 if it exceeds Rs. 5 lakh.
2. Interest on taxes due: An interest of 1% per month applies to unpaid taxes.
3. Loss of tax benefits:
- No carry-forward of losses to offset future income.
- Missed refunds and deductions.
4. Notices from the tax department:
You may receive a notice under Sections 142(1) or 148 asking for details.
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Key points to remember
Voluntary returns are valid: Even if filing is not mandatory, voluntary returns are accepted by the tax department.
Use deductions: Save tax by claiming deductions under Sections 80C (investments) and 80D (medical insurance).
File before the deadline: Filing on time avoids penalties and ensures quicker refunds.
Income Tax Section 139(1) simplifies the rules for filing returns. Whether you are an individual, a company, or a resident with foreign assets, knowing your responsibilities helps you stay tax-compliant.
Understanding your tax obligations is the first step towards better financial planning and achieving your life goals, including homeownership. With proper tax compliance and income documentation, you can easily qualify for attractive home loan offers. Bajaj Finserv provides hassle-free approval within 48 hours* and flexible repayment options up to 32 years. Check your eligibility for competitive home loan rates and make your dream home a reality. You may already be eligible, find out by entering your mobile number and OTP.
