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 FY25: IT dept extends last date for filing returns on income tax for FY25 from July 31 to 15 September 2025
The Income Tax Department has officially extended the last date for filing Income Tax Returns (ITRs) for the financial year 2024-25 (assessment year 2025-26). Originally set at 31 July 2025, the due date has now been moved to 15 September 2025. This applies to individual taxpayers and Hindu Undivided Families (HUFs) who do not need to have their accounts audited.
The extension has been announced to help taxpayers manage delays in accessing updated ITR forms and filing systems. The new forms have introduced changes aimed at making the process simpler, more transparent, and better aligned with digital systems. Additional time was needed to adjust backend systems and utilities accordingly.
Salaried individuals, freelancers, and small business owners who are not subject to audits will benefit from this relief, as they now have more time to collect documents and file without last-minute pressure.
Meanwhile, those who are required to get their accounts audited must still file their ITRs by 31 October 2025. Taxpayers are advised to file within the extended timeline to avoid late fees under Section 234F, which can go up to Rs. 5,000 for delayed submissions.Here’s everything you need to know about this section, explained in simple terms.
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.
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 7.35%* 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. 677/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.
