Rationalisation of provisions relating to filing of return of income

(A) Rationalisation of provisions relating to filing of return of income [Section 139] Effective from: A.Y.2017-18

For the purposes of rationalising the time allowed for filing of returns, completion of proceedings, and realization of revenue without undue compliance burden on the taxpayer, and to encourage due compliance, the following amendments have been effected in section 139:

	Section	Provision	Amendment by the Finance Act, 2016
r^…..‘ ……0	139(1) [Sixth proviso]	Mandatory filing of return if	Mandatory filing of return if total
		total income before giving	income before giving effect to
		effect to deductions under	exemption u/s 10(38) in respect
		Chapter VIA exceed basic	of long-term capital gains exceed
		exemption limit	basic exemption limit
		Every person, being an individual or HUF or an AOP or a BOI, whether incorporated or not or any artificial juridical person, 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, without giving effect to provisions of Chapter VI-A, exceeds the basic exemption limit shall be liable to furnish return on or before the due date.	If such a person earns income by way of long-term capital gains in the previous year, which is exempt under section 10(38), and income of such person without giving effect to section 10(38) exceeds the basic exemption limit, then also such person shall be liable to mandatorily file return of income for the previous year on or before the due date.
(ii)	139(4)	Time limit for filing belated	Reduction of time limit for filing
		return:	belated return:
		A person who has not furnished a return within the time allowed to him under section 139(1), or	Any person who has not furnished a return within the time allowed to him under section 139(1), may

		within the time allowed under a notice issued under section section 142(1), may furnish the return for any previous year at any time before the expiry of one year	furnish the return for any previous year at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier. Thus, belated return can be filed only in case a person has not furnished his return within the time allowed under section 139(1). Also, the belated return cannot be furnished after the end of the relevant assessment year.
		from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
(iii)	139(5)	Belated return cannot be revised:	Belated return can be revised:
			If any person, having furnished a return under section 139(1) or belated return under section 139(4), discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier. An enabling provision for revision of belated return has been introduced. However, a return furnished in pursuance of a notice issued under section 142(1) cannot be revised.
		If any person, having furnished the return under section 139(1), or in pursuance of a notice issued under section 142(1), discovers any omission or any wrong statement therein, he may furnish a revised return at any time before one year from the end of the relevant assessment year or completion of assessment, whichever is earlier.
(iv)	Clause (aa) — Expin to ¹³⁹(⁹)	Return deemed to be defective	Return not deemed to be
		if self-assessment tax is not	defective if self-assessment tax
		paid before furnishing the	is not paid before furnishing the
		return	return
		A return of income shall be regarded as defective unless the self-assessment tax together with interest, if any, payable in accordance with the provisions of section 140A, has been paid on or before the date of furnishing of return.	A return which is otherwise valid would not be treated defective merely because self-assessment tax and interest payable in accordance with the provisions of section 140A has not been paid on or before the date of furnishing of the return.

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