Nikita Gupta
Summary: The article discusses the amendments introduced by the Finance Act, 2026 to Section 139 of the Income-tax Act, 1961, effective from 1 March 2026, substituting Explanation 2 to specify due dates for filing income tax returns based on the category of taxpayer and applicable conditions. It states that assessees covered by section 92E must file by 30 November, companies and specified audited assessees not covered by section 92E by 31 October, assessees having income from profits and gains of business or profession whose accounts are not required to be audited, along with specified partners, by 31 August, and all other assessees by 31 July. The article explains that a common misconception is that due dates depend on the ITR form number, whereas it states that the due date depends on the nature of income declared. It provides examples involving rental income reclassified from Profits and Gains of Business or Profession to Income from House Property, notes that this may create confusion for firms and partners due to the Income Tax utility, and advises taxpayers to verify the nature of income rather than rely on the ITR form number when determining the due date.
Introduction
The Finance Act, 2026 introduced important amendments to Section 139 of the Income Tax Act, 1961, specifically relating to the due dates for filing income tax returns (ITRs). This amendment was aimed at clarifying timelines for different categories of taxpayers and reducing compliance-related confusion.
In section 139 of the Income-tax Act, with effect from the 1st day of March, 2026,––
(a) in sub-section (1), for Explanation 2, the following Explanation shall be substituted and shall be deemed to have been substituted, namely:––
‘Explanation 2.––For the purposes of this sub-section, “due date” in respect of the persons mentioned in column B of the Table below, subject to the conditions as mentioned in column C of the said Table, shall be the due date of assessment year as mentioned in column D thereof:
| Sl. No. | Person | Conditions | Due Date |
| 1 | Assessee, including the partners of the firm or the spouse of such partner (if section 5A applies to such spouse). | Where the provisions of section 92E apply. | 30th November |
| 2 | (i) Company;
(ii) Assessee (other than a company) whose accounts are required to be audited under this Act or under any other law for the time being in force; (iii) Partner of a firm whose accounts are required to be audited under this Act or under any other law for the time being in force or the spouse of such partner (if section 5A applies to such spouse). |
Where the provisions of section 92E do not apply. | 31st October |
| 3 | (i) Assessee having income from profits and gains of business or profession whose accounts are not required to be audited under this Act or under any other law for the time being in force;
(ii) Partner of a firm whose accounts are not required to be audited under this Act or under any other law for the time being in force or the spouse of such partner (if section 5A applies to such spouse). |
Where the provisions of section 92E do not apply. | 31st August |
| 4 | Any other assessee. | — | 31st July |
Misconceptions About Due Dates
A common misconception among taxpayers is that the due date for filing returns depends solely on the ITR form number. For example:
– ITR-1 & ITR-2 → Believed to be due by 31st July
– ITR-3, ITR-4 & ITR-5 → Believed to be due by 31st August (if audit is not applicable)
This understanding is not entirely correct.
The Correct Position
The due date is determined not by the ITR form itself, but by the nature of income declared:
– If you are filing ITR-3, ITR-4, or ITR-5 but not declaring business income under “Profits and Gains of Business or Profession (PGBP)”, then your due date remains 31st July.
– For instance, if you initially show rental income under PGBP but later reclassify it under Income from House Property (IFHP), thereby reducing your PGBP income to zero, you are not eligible for the August deadline. Your return must be filed by 31st July.
Practical Example
– Firms with rental income: If a firm shows rental income under PGBP and later shifts it to IFHP, the firm’s due date is 31st July.
– Partners of such firms: Their due date may still fall in August, creating confusion.
This discrepancy arises due to the way the Income Tax utility processes returns, and has led to misconceptions among taxpayers.
Advisory
Taxpayers are strongly advised to:
– File their returns by 31st July unless they have genuine business income under PGBP requiring audit.
– Avoid relying solely on the ITR form number for determining due dates.
– Ensure timely compliance to prevent penalties, late fees, or interest under the Income Tax Act.
Conclusion
The Finance Act, 2026 amendment to Section 139 was intended to simplify return filing timelines. However, due to technical issues and misconceptions, many taxpayers remain confused. To stay compliant, always verify the nature of income rather than the ITR form number when determining your due date.
