Section 139(1) of Income Tax Act makes filing a return compulsory for every company and firm, and for any individual, HUF or other person whose gross total income, counted before deductions, goes past the basic exemption limit. It also catches some people with low income, such as anyone who spent more than ₹2 lakh on foreign travel or had ₹25,000 or more of TDS in the year.
A return filed on time under this sub-section is called an original return under section 139(1). Filing on time keeps your losses alive and avoids the late fee. This page covers income of FY 2025-26, filed in AY 2026-27 under the 1961 Act, and shows where the same duty now sits under the Income-tax Act, 2025.
Quick facts
Who must file
Companies and firms always; others when gross income exceeds the exemption limitExemption limit, FY 2025-26
₹4 lakh new regime; ₹2.5 lakh old regime (₹3 lakh at 60, ₹5 lakh at 80)Test income
Before Chapter VI-A deductions and capital gains exemptionsDue date, AY 2026-27
31 July; 31 August for non-audit business cases; 21 November for audit casesLate filing
Fee up to ₹5,000 under 234F; ₹1,000 if income is up to ₹5 lakhDefective return
Section 139(9): fix within 15 days of the noticeUnder the 2025 Act
Section 263(1), from tax year 2026-27
What section 139(1) of Income Tax Act requires
The sub-section names two groups. The first group must file every year, whatever the figures: companies and firms, including LLPs, even in a loss year or a year with no business at all. The second group is everyone else, mainly individuals and HUFs, who must file when their total income crosses the maximum amount not chargeable to tax.
The test for the second group is strict in one way people miss. You compare the limit with income before deductions under Chapter VI-A (80C, 80D and the rest) and before capital gains exemptions such as 54 and 54F. A person who earns ₹4,50,000 under the old regime and invests ₹1,50,000 in 80C still has to file, because the gross figure is above ₹2,50,000.
The 87A rebate does not change this. Nil tax and no return are two different things.
Who should file ITR: limits for FY 2025-26
| Person | New regime | Old regime |
|---|---|---|
| Individual below 60 | ₹4,00,000 | ₹2,50,000 |
| Resident aged 60 to 79 | ₹4,00,000 | ₹3,00,000 |
| Resident aged 80 or more | ₹4,00,000 | ₹5,00,000 |
| Company, firm, LLP | Must file in every case | |
So is it mandatory to file income tax return below 5 lakhs? Often yes. A salaried person below 60 with gross income of ₹4,80,000 crosses both limits. Only a super senior citizen in the old regime gets a ₹5 lakh limit. See the full new regime slabs for the tax side.
Is it compulsory to file ITR when income is below the limit
Yes, in the cases listed in the seventh proviso to 139(1) and Rule 12AB. Any one of these in FY 2025-26 makes a return due:
| Trigger in the year | Threshold |
|---|---|
| Cash or other deposits across your current accounts | More than ₹1 crore in total |
| Deposits in one or more savings accounts | ₹50 lakh or more in total |
| Foreign travel spending, for yourself or anyone else | More than ₹2 lakh |
| Electricity bills paid | More than ₹1 lakh |
| Business turnover or gross receipts | More than ₹60 lakh |
| Gross receipts of a profession | More than ₹10 lakh |
| TDS plus TCS on your income | ₹25,000 or more (₹50,000 for residents aged 60 or more) |
| Foreign asset, foreign account signing authority, or beneficiary of a foreign asset (residents) | Any amount |
You will find most of these figures in your AIS and Form 26AS, since banks and deductors report them.
Worked examples: does this person need to file
Salary with nil tax. Kavita draws ₹7,50,000 as salary in FY 2025-26 and has not left the new regime. Less the ₹75,000 standard deduction, taxable income is ₹6,75,000. Tax on ₹2,75,000 above ₹4 lakh at 5% is ₹13,750, and the 87A rebate cancels all of it. Tax due: nil. But ₹6,75,000 is above the ₹4 lakh limit, so she must file under 139(1).
Low income, one trip abroad. Farhan, aged 34, has ₹2,10,000 of interest and rent in FY 2025-26, below even the old regime limit. He paid ₹2,60,000 for a family holiday overseas. Spending above ₹2 lakh on foreign travel makes the return compulsory for him.
Due dates and what a late return costs
| Type of return | Last date |
|---|---|
| Original return, no business or profession income | 31 July |
| Original return, business or profession without audit | 31 August |
| Original return, tax audit cases | 21 November (extended by CBDT) |
| Transfer pricing cases | 30 November |
| Belated return, section 139(4) | 31 December |
Missing the 139(1) date has three costs. A fee under section 234F of ₹5,000, reduced to ₹1,000 if total income stays within ₹5 lakh. Interest under 234A on unpaid tax, charged at 1% a month. And the year's business and capital losses lose the right to be carried forward, though a house property loss still can. Check the current dates on the ITR due dates page.
Filing an original return on the e-filing portal
- Log in first: the e-filing portal takes your PAN as the user ID.
- In the e-File menu, click Income Tax Returns and select File Income Tax Return.
- Select AY 2026-27 and choose online as the mode.
- Mark yourself as an individual, HUF or other, and select the right ITR form.
- When asked for the filing section, select 139(1), on or before the due date.
- Check prefilled figures against Form 16 and AIS, and pay any tax due.
- Submit it and finish e-verification in 30 days; a return left unverified counts as not filed.
Section 139(9) of Income Tax Act: defective returns
A return can be filed on time and still fail. If the department finds it incomplete, for example tax claimed as paid with no challan, or business income shown with no balance sheet, it sends a notice under 139(9). You get 15 days from the notice to correct the defect, and the officer can allow more time on request.
Reply under e-Proceedings on the portal with a corrected return. Ignore it and the return is treated as never filed.
The same duty under section 263 of the 2025 Act
| Rule | FY 2025-26 (1961 Act) | Tax year 2026-27 (2025 Act) |
|---|---|---|
| Duty to file | Section 139(1) | Section 263(1) |
| Belated return | Section 139(4), by 31 December of AY 2026-27 | Section 263(4), within 9 months after the tax year ends |
| Revised return | Section 139(5) | Section 263(5), within 12 months after the tax year ends |
The portal describes the categories in section 263(1) as broadly the same as before. Income earned from 1 April 2026 is reported for tax year 2026-27, so the first return under the new section comes after that year ends. Background: Income Tax Act, 1961.
Mistakes people make about the filing duty
| Belief | What the law says |
|---|---|
| No tax payable, so no return | The test is gross income against the exemption limit, not tax due |
| 80C investments bring me under the limit | Deductions are ignored for this test |
| My firm made a loss, so it can skip | Firms and companies file every year |
| TDS was cut, so the department already has my details | TDS of ₹25,000 or more itself makes the return compulsory |
General information on the filing rules, not advice for your own facts. Limits and dates can change, so check your case on the official e-filing portal; a chartered accountant can also review it for you.
Sources we checked
- Income-tax Act, 1961, section 139
- Income-tax Rules, 1962, rule 12AB
- Income-tax Act, 2025, section 263
- Income-tax Act, 1961, section 234F
- e-filing portal help: Income Tax Returns FAQs
Frequently asked questions
Who should file income tax return in India?
Every company and firm must file. Individuals and HUFs must file when gross income before deductions is above the exemption limit, or when a trigger such as high foreign travel spending, large deposits or TDS of ₹25,000 or more applies.
Is it mandatory to file ITR if my income is below ₹5 lakh?
It depends on the regime and your age. Under the new regime the limit for FY 2025-26 is ₹4 lakh, and under the old regime it is ₹2.5 lakh below age 60. Income of ₹4.5 lakh therefore usually needs a return, even if the rebate brings the tax down to nil.
How is section 139 different from 139(1)?
Section 139 as a whole covers all returns: original, belated, revised, defective and updated. Sub-section (1) deals only with the original return filed on time, and it sets out who has to file.
What happens if I ignore a 139(9) defective return notice?
The return is treated as invalid, as if you had not filed. You may then face the late fee and lose the right to carry forward some losses. Correct the return within 15 days or ask the officer for more time.
Which section applies to returns after the new Act started?
Returns for FY 2025-26, filed in AY 2026-27, still follow section 139 of the 1961 Act. Returns for tax year 2026-27 onward follow section 263 of the Income-tax Act, 2025.