Dear friends, as we all know, India is one of the highest populated country of the world but income tax payers are very less in comparison to size of population. To run a country government needs funds which can be collected in the form of taxation. Taxation is of 2 kinds – Direct Tax like Income Tax and Indirect tax like GST.

Now, the Government of India is focusing to increase taxation base of direct tax and indirect tax. In case of direct tax like Income Tax Act, every year Income Tax departments adds new category of people who are mandatorily under obligation to file Income Tax Return, so that comparative data is available with Income Tax Department with AIR Reports and information collected from other external entities.

Section 139 (1) of Income Tax Act describes about the persons who are mandatorily required to File ITR. Extract of Section 139 (1) is below:

139. (1) Every person,

(a)  being a company or a firm; or

(b)  being a person other than a company or a firm, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax,

shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed:

If you are not covered under above mentioned criteria for filing ITR, then you have to check proviso to this section which cover other transactions that if you have done during the previous year then you are under obligation to file ITR. List of transactions covered under proviso is vary lengthy, out of which I am describing some transaction which a person normally done but does not file ITR.

√ A person referred to in clause (b), who is not required to furnish a return under this sub-section, and who during the previous year—

(i)  has deposited an amount or aggregate of the amounts exceeding one crore rupees in one or more current accounts maintained with a banking company or a co-operative bank; or

(ii)  has incurred expenditure of an amount or aggregate of the amounts exceeding two lakh rupees for himself or any other person for travel to a foreign country; or

(iii)  has incurred expenditure of an amount or aggregate of the amounts exceeding one lakh rupees towards consumption of electricity; or

(iv)  fulfils such other conditions as may be prescribed, shall furnish a return of his income on or before the due date in such form and verified in such manner and setting forth such other particulars, as may be prescribed.]

If the person who is liable to file ITR does not do the same then it may invite many consequences like best judgement assessment under Section 144 & 148. Along with this Income Tax department has introduced other sections like Section 194N, Section 206AB and Section 206CCA which impose deduction of TDS/TCS at higher rate. To avoid above consequences, it is better to file ITR on or before due date because Filing of ITR after due date invite Late Filing Fee and penal interest.

In normal circumstances due date for Filing ITR for Non audit cases is 31st July of respective assessment year. Due date for Filing Belated return U/s 139 (4) of Income Tax Act 1961 for A.Y -2020-21 is 31.03.2021 but due to lockdown in some states due date for Filing belated and revised return U/s 139 (5) of Income Tax Act, 1961 has been extended from 31.03.2021 to 31.05.2021

CBDT Vide its press release dated 01 May 2021 has extended the timelines of certain compliances. In this press release at point No-d it is mentioned that – “Filing of belated return U/s 139 (4) and revised return U/s 139 (5) for A.Y-2021-21, which was required to be filed on or before 31/03/2021, may be filed on or before 31st May 2021”.

All the readers, who are required to file Income Tax return but missed the same due to any reason, kindly file it on or before 31/05/2021 to avoid above mentioned consequences.


This article is for the purpose of information and shall not be treated as solicitation in any manner and for any other purpose whatsoever. It shall not be used as legal opinion and not to be used for rendering any professional advice. This article is written on the basis of author’s person experience and provision applicable as on date of writing of this article. Adequate attention has been given to avoid any clerical/arithmetical error, however; if it still persists kindly intimate us to avoid such error for the benefits of others readers.

The Author can be reached at mail –[email protected] and Mobile/Whatsapp – 9911303737/ 9716118384

Author Bio

Qualification: CA in Practice
Company: Shiv Kumar Sharma & Associates
Location: Delhi, Delhi, India
Member Since: 03 Dec 2018 | Total Posts: 69
My Self CA. Shiv Kumar Sharma. I am a member of "The Institute of Chartered Accountants of India" since 2012. I have Qualified my B.Com (H) in 2010 And Cleared CS- Executive Exam in June 2013. Currently, I am in Practice and dealing in Direct and Indirect taxation along with ROC Compliances. View Full Profile

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May 2021