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Section 139 of Income Tax Act: Your Complete Guide to Filing ITR (AY 2025-26)

  • Writer: Asharam Swain
    Asharam Swain
  • Jul 24
  • 11 min read

Understanding Section 139: Why It Matters for Every Taxpayer

Filing your Income Tax Return (ITR) correctly and on time is a critical financial responsibility. Section 139 of the Income Tax Act is the principal guideline that governs the process of ITR filing in India. It outlines who needs to file, when they need to file, and what happens if they make a mistake or miss the deadline. This comprehensive guide will explain every aspect of Section 139, fully updated for the Assessment Year (AY) 2025-26, to help you manage your tax obligations with confidence. TaxBuddy is here to demystify these rules, ensuring your filing process is seamless.

Table of content 

What is Section 139 of the Income Tax Act, 1961?

Section 139 of the Income Tax Act, 1961, mandates how and when a taxpayer must file their income tax returns. The fundamental purpose of this section is to provide a structured way for taxpayers to declare their annual income, claim eligible deductions, and pay their accurate tax liability to the government. This guide breaks down the complex sub-sections of Section 139 into simple, understandable terms. We will cover all the different types of returns, their specific due dates, and the consequences of any delays or errors, all based on the latest rules for AY 2025-26.


Section 139(1): The Foundation of ITR Filing – Who MUST File and When?

Section 139(1) of the Income Tax Act establishes the basic requirement for filing an ITR. This provision specifies which individuals and entities absolutely must file a return and sets the official deadlines. It also covers the concept of a voluntary return, which someone can file even if not mandatory, to gain benefits like claiming a tax refund, carrying forward financial losses, or providing income proof for loans. The due dates under this section vary depending on the category of the taxpayer.


Who Absolutely Needs to File an ITR under Sec 139(1)?

Under Section 139(1), mandatory ITR filing criteria apply to several categories of taxpayers. You are required to file an income tax return if you fall into any of the following groups:

  • Individuals: Any individual whose gross total income, before claiming any deductions, exceeds the basic exemption limit for the financial year.

  • Companies and Firms: All companies and firms must file an ITR, regardless of whether they earned a profit or incurred a loss.

  • Specific Individuals: People who hold foreign assets, have signing authority in a foreign bank account, or have engaged in certain high-value transactions as specified by the tax department must also file a return.


Mark Your Calendars: ITR Filing Due Dates for AY 2025-26 (FY 2024-25)

The ITR due dates for AY 2025-26 are critical to remember to avoid penalties. The deadlines are set based on the taxpayer's category:

Category of Taxpayer

Due Date for Filing ITR

Individuals, HUFs, AOPs, BOIs (accounts not requiring audit)

15th September 2025

Companies and taxpayers requiring an audit of their accounts

31st October 2025

Taxpayers requiring a transfer pricing report (u/s 92E)

30th November 2025

The original due date of July 31, 2025, for non-audit cases was extended to September 15, 2025, to accommodate changes in the ITR forms.


Section 139(3): Filing a Loss Return – Turning Setbacks into Future Benefits

Section 139(3) addresses the filing of a loss return, which is essential if you want to carry forward certain financial losses to future years. If you have incurred a loss under the head "Capital Gains" or "Profits and Gains of Business or Profession," you must file your ITR by the original due date under Section 139(1) to be able to offset these losses against future income. Failing to file on time means you forfeit the right to carry forward these specific losses, although some exceptions, like unabsorbed depreciation and loss from house property, may still be allowed.


Section 139(4): Missed the Deadline? Understanding Belated Returns

Section 139(4) provides a provision for filing a belated return if you miss the original deadline. A belated return is an ITR filed after the due dates mentioned in Section 139(1) but before a specified final date. This allows taxpayers a second chance to comply with the law, though it comes with certain consequences.


What is the Last Date to File a Belated Return for AY 2025-26?

The belated return last date for AY 2025-26 is December 31, 2025. You must file your late return by this date or before your assessment is completed by the tax department, whichever comes first.


The Downsides: Consequences of Filing a Belated ITR

Filing a belated ITR has several consequences. While it's better than not filing at all, you should be aware of the following implications:

  • Late Filing Fee: A mandatory fee under Section 234F is charged. It is ₹5,000, but if your total income is ₹5 lakh or less, the fee is reduced to ₹1,000.

  • Interest on Tax Due: You must pay interest at 1% per month on any outstanding tax amount under Section 234A from the due date until you file.

  • Loss Carry-Forward Restrictions: You cannot carry forward most business and capital losses if you file a late return.

  • Delayed Refunds: Processing of any tax refunds you are owed will likely be delayed.


Section 139(5): Made a Mistake? How to File a Revised Return

Section 139(5) allows you to file a revised return to correct any mistake, omission, or wrong statement made in your original ITR. This is an important provision that helps you ensure your tax records are completely accurate. You can revise a return whether it was filed on time under Section 139(1) or filed late as a belated return under Section 139(4).


Eligibility and Deadline for Filing a Revised ITR for AY 2025-26

Any taxpayer who has already filed an ITR can revise that return. The last date for filing a revised return for AY 2025-26 is the same as the deadline for a belated return: December 31, 2025, or before the completion of the assessment, whichever is earlier.


Section 139(8A): ITR-U – Your Opportunity to Update Previous Years' Returns

Section 139(8A) introduces the concept of an updated return (ITR-U), a form that gives taxpayers a chance to correct their returns from previous years. This provision was created to encourage voluntary compliance by allowing people to report income they may have missed earlier. You can file an ITR-U even if you did not file any return for that year initially.


Are You Eligible to File ITR-U? Key Conditions

While a useful tool, there are specific conditions for ITR-U eligibility. A person can file an ITR-U to report previously omitted income. However, you cannot file an ITR-U in the following situations:

  • If the updated return is a loss return.

  • If it reduces your total tax liability.

  • If it results in a tax refund or increases an existing refund.

  • If a search or survey proceeding has been initiated against you for that year.


ITR-U Filing Window: For Which Years and Until When?

The ITR-U time limit has recently been extended. A taxpayer can file an updated return within four years (48 months) from the end of the relevant assessment year.

  • For AY 2022-23, an ITR-U can be filed until March 31, 2027.

  • For AY 2023-24, an ITR-U can be filed until March 31, 2028.

  • For AY 2024-25, an ITR-U can be filed until March 31, 2029.


The Cost of Updating: Additional Tax for ITR-U

There is an additional tax for filing an ITR-U. This is calculated on the amount of extra tax and interest you have to pay. The rates are:

  • 25% of the aggregate tax and interest if filed within one year from the end of the relevant assessment year.

  • 50% of the aggregate tax and interest if filed after one year but within two years from the end of the relevant assessment year.


Section 139(9): Uh Oh! Dealing with a Defective Return Notice

Section 139(9) deals with a defective return notice, which the Income Tax Department may send if your ITR is incomplete or has certain inconsistencies. This notice is not a penalty but a request to fix the errors. Common reasons for a defective return notice include a mismatch between TDS claimed and details in Form 26AS, using the wrong ITR form, or leaving mandatory fields empty. The tax department will give you 15 days to rectify the defect, and if you fail to do so, your return might be considered invalid.


Quick Look: Other Key Sub-sections under Section 139

There are several other sub-sections under Section 139 that apply to specific entities. These provisions ensure that various organizations also comply with tax filing requirements.


Section 139(4A) – Trusts and Religious Institutions

This section requires trusts and institutions with income from property held for charitable or religious purposes to file a return if their income, before claiming exemptions, exceeds the basic exemption limit.


Section 139(4B) – Political Parties

Section 139(4B) mandates that political parties must file an ITR if their total income exceeds the non-taxable limit, without considering exemptions under Section 13A.


Section 139(4C) & (4D) – Specific Institutions

These sections apply to entities like research associations, universities, hospitals, and other institutions that claim tax exemptions under Section 10 of the act.


Section 139 at a Glance: Return Types, Deadlines & Implications

This ITR filing summary provides a clear overview of the different types of returns under Section 139. To simplify your choices, here is a comparison table that highlights the key differences between the main return types.

Feature

Original Return (139(1))

Belated Return (139(4))

Revised Return (139(5))

Updated Return (139(8A))

Purpose

Timely filing of income

Filing after the due date

Correcting errors in a filed ITR

Updating past returns with missed income

Deadline (AY 2025-26)

Sept 15 / Oct 31 / Nov 30, 2025

December 31, 2025

December 31, 2025

Within 4 years from end of AY

Late Fee

None

Yes (up to ₹5,000)

No (unless original was late)

Not applicable

Additional Tax

No

No

No

Yes (25% or 50% of tax + interest)

Carry Forward Losses

Yes

No (for most losses)

Yes (if original was on time)

No

Claim Refund

Yes

Yes

Yes

No

Essential Know-How for Your ITR Filing Journey

Filing your ITR involves more than just knowing the right section. Here are some practical tips to keep in mind.


Choosing the Correct ITR Form

The ITR forms you need to use depend on your income sources. For example, ITR-1 (Sahaj) is for resident individuals with simple salary income up to ₹50 lakh, while other forms like ITR-2, 3, and 4 are for those with capital gains, business income, or presumptive income. Using the correct form is a mandatory requirement to avoid a defective return notice.


Documents You'll Need for Filing Your ITR

Having the right documents for ITR filing makes the process much smoother. Key documents include your PAN card, Aadhaar card, Form 16 from your employer, bank statements, and details from your Form 26AS and Annual Information Statement (AIS) to ensure all income and TDS are correctly reported.


Don't Forget: The Crucial Step of E-Verifying Your ITR

You must e-verify your ITR after filing it. The tax department will not process your return until it is verified. You have 30 days from the date of filing to complete the verification process. If you miss this deadline, your ITR will be considered invalid. You can e-verify instantly using methods like Aadhaar OTP or net banking.


The Cost of Non-Compliance: Penalties Related to Section 139

The income tax penalties for not complying with Section 139 can be significant. Beyond the late filing fee under Section 234F, other penalties include:

  • Interest under Section 234A: For delay in filing the return.

  • Penalty for misreporting income (Section 270A): This can be as high as 200% of the tax payable on the misreported income.

  • Prosecution under Section 276CC: In cases of willful failure to file a return, the department can initiate prosecution, which may lead to imprisonment.


Navigating Section 139 with TaxBuddy: Expert Assistance at Your Fingertips

Understanding all the rules of TaxBuddy ITR filing can feel overwhelming, but you don't have to do it alone. Our team of tax experts is here to provide assistance with every step of the process. Whether you need help with choosing the right form, calculating your taxes, or responding to a notice, we ensure your filing is accurate and fully compliant.


Conclusion: Mastering Your ITR Obligations under Section 139

This section 139 summary confirms its crucial role in tax compliance. The key is to file accurately and on time to avoid unnecessary penalties and interest.

  • Always be aware of your correct due date.

  • File a loss return on time to carry forward business and capital losses.

  • Use the revised return option to correct any mistakes promptly.

  • Remember that filing a belated return is always better than not filing at all.

  • Never forget to e-verify your return within 30 days.

Staying informed about these rules helps maintain a clean financial record. For any complexities, TaxBuddy is always ready to assist.


Frequently Asked Question (FAQs) :on Section 139 of the Income Tax Act

Q1. What is the main purpose of Section 139? 

Section 139 of the Income Tax Act outlines the rules for filing income tax returns, including who must file, the deadlines, and the types of returns.


Q2. Is it mandatory to file an ITR if my income is below the taxable limit?

It is not mandatory, but it is recommended to file a "nil return" to claim refunds, carry forward losses, or have proof of income for loan applications.


Q3. What is the difference between Section 139(1) and Section 139(4)? 

Section 139(1) is for returns filed by the original due date, while Section 139(4) is for belated returns filed after the due date has passed.


Q4. Can I file a revised return for an ITR filed under Section 139(4) (belated return)? 

Yes, a belated return filed under Section 139(4) can be revised using Section 139(5).


Q5. What happens if I don't file my ITR at all? 

Not filing your ITR can lead to penalties, interest on the tax due, and even prosecution in severe cases.


Q6. What is the fee for filing a belated return under Sec 234F for AY 2025-26? 

The fee is ₹5,000, but it is reduced to ₹1,000 if your total income does not exceed ₹5 lakh.


Q7. How many times can I revise my ITR under Section 139(5)? 

You can revise your return multiple times before the deadline of December 31 of the assessment year.


Q8. What is ITR-U (Section 139(8A)) and for which Assessment Years can I file it now? 

ITR-U is an updated return to correct past ITRs. It can be filed within four years from the end of the relevant AY. For example, in FY 2025-26, you can file ITR-U for AYs 2022-23, 2023-24 and so on.


Q9. Can I claim a refund through ITR-U? 

No, an updated return cannot be used to claim a refund or increase a refund amount.


Q10. What should I do if I receive a defective return notice under Section 139(9)? 

You must rectify the specified defect and file a corrected return within 15 days of receiving the notice.


Q11. Can I carry forward business losses if I file a belated return? 

No, most business losses and capital losses cannot be carried forward if you file a belated return.


Q12. Is e-verification compulsory after filing ITR? 

Yes, e-verification is mandatory and must be completed within 30 days of filing for the return to be considered valid.


Q13. What is the due date for filing ITR for a company for AY 2025-26? 

The due date for companies that require an audit is October 31, 2025.


Q14. Does the New Tax Regime affect filing returns under Section 139? 

Yes, for certain taxpayers, if a belated return is filed, they may lose the option to choose the old tax regime and must file under the new regime by default.


Q15. If I file ITR-U, do I still need to pay interest on the tax due? 

Yes, you must pay the tax due along with interest, plus an additional tax of 25% or 50%.


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