Who Must File an Income Tax Return in India?

Summary: As per Section 139(1) of the Income Tax Act, 1961, any individual or entity whose income for a financial year exceeds the maximum amount not chargeable to tax is required to file a return. The text outlines specific due dates for different types of assessees: October 31st for companies, limited liability partnerships, and firms subject to an audit; November 30th for assessees required to submit a report under Section 92E; and July 31st for all other individuals. Filing is also mandatory regardless of income for anyone who, during the year, deposited over one crore rupees in a current bank account, spent more than two lakh rupees on foreign travel, or incurred electricity expenses exceeding one lakh rupees. The law also mandates that resident assessees with assets or signing authority in foreign accounts must file a return. Additionally, to carry forward a loss from a business or capital gains, the return showing the loss must be filed within the specified due date.

As per Section 139(1) of Income Tax Act, 1961, an assesse whose income for the previous year that is accounting year, exceed the limit of taxable income, has to file his return of income before due date.

Due date for filling return of income is as under:

01. Where the assesse is a Company, Limited Liability Partnership, Partnership Firm whose accounts are required to be audited under Income Tax Act or any other laws like, Companies Act, Goods and Service Tax Act, Public Charitable Trust Act, Society Registration Act etc. In case of partnership firm, the partners and their spouse if the provisions of section 5A applies to such spouse.

    By 31^st October

02. In the case of any other assesse other than mention above.

   By 31^st July

03. Assesse (including company) who is required to submit report under section 92E regarding Transfer Pricing in Form No 3CEB.                                                      

 By 30^th November

Over and above this, there is an amendment by Finance Bill 2015, under section 139(1), as per 4^th proviso, resident assesse not being ordinary resident, who is not required to submit his return of income, have to submit details of income or loss in prescribed form, if during previous year-

• Holds, as a beneficial owner or otherwise, any asset located outside India, or has signing authority in any account located outside India; or
• Is beneficiary of any asset, located outside India, is required to furnish a return of income in respect of his income or loss for the previous year in such form and verified in such manner and setting forth such other particulars as may be prescribed.

Every person, being an individual or Hindu Undivided Family or AOP or BOI or an artificial juridical person, if his total income or total income of any other person in respect of which he is assessable under the Income Tax Act during the previous year before giving effect of the provisions of Sections 10(38) or 10A or 10B or 10BA, or from assessment year 2020-21 and on words section 54, or 54B or 54D or 54EC or 54F or 54G or 54GA or 54GB or deductions under Chapter VI-A exceeds the maximum amount which is not chargeable to income tax, than such person has to, on or before the due date, file his return of income. Let’s take an example to understand this.

During the financial year 2024-25 i.e. assessment Year. 2025-26 Mr. Atul has following income.

In the above case Mr. Atul has to submit his return of income though his taxable income is below taxable income.

Over and above, any person referred to in section 139(1)(b) i.e person other than a company or a firm, who is not required to furnish a return of income u/s 139(1). If any kind of transections below has incurred during the year, assesse will have to file his return of income.

01. Deposited an amount or aggregate of the amounts exceeding one crore rupees in one or more current accounts with a banking company or a co. operative bank;

02. Assesse has incurred expenditure of an amount or aggregate of amounts exceeding two lakh rupees for himself or any other person for travel to a foreign country;

03. Assesse has incurred expenditure of an amount or aggregate of the amounts exceeding one lakh rupees towards consumption of electricity; or

04. Fulfils such other conditions as may be prescribed.

Section 139(1A) provides that an individual receiving salary income may, at his option, furnish his return of income to his employer, in accordance with and subject to the conditions specified in the notified scheme, i. e. “Scheme for Filling of Return by Salaried Employees through Employer, 2004” [265 ITR (St.) 35] The employer in turn shall furnish all such returns received by him from his employees before the due date.

Loss Return: [Section 139(3) with section 80]

If any person has incurred a loss in any previous year under the head ‘Profits or gains of Business or profession’ or under the head Capital Gains’ and claims that loss should be carried forward u/s 72(1) or 73(2) or 73A(2) or 74(1) / (3) or 74A(3), then he must file the return of income showing the loss within the time allowed u/s 139(1). If a person failed to submit within time allowed, he is not entitled to claim carried forward loss.