An in-depth analysis of Section 139(8A) of the Income-tax Act of 1961

Overview

A crucial section pertaining to the filing of income tax returns in India is Section 139(8A) of the Income-tax Act, 1961. The Finance Act of 2020 introduced this provision, which has been in effect starting with the 2020–21 assessment year. In this blog post, we will explore the specifics of Section 139(8A) and its impact on taxpayers, including its background, key points, ramifications, and commonly asked questions.

Section 139(8A): History

Until the introduction of Section 139(8A) by the Finance Act of 2020, the Income-tax Act, 1961 did not have a specific provision for filing late returns. This section was introduced to provide taxpayers, who had missed the deadline, an opportunity to file their tax returns and avoid penalties and other consequences.

What is Section 139(8A)?

According to Section 139(8A), if a person’s deadline for filing a return under Subsection (1) has passed and they have not furnished a return under Subsections (1), (4), or (5) of Section 139, they are required to provide a return of income within the timeframe and manner specified by the Central Board of Direct Taxes (CBDT).

Principal Elements of Section 139(8A)

• Application: This section applies to those who failed to file their income tax returns within the prescribed time limits.
• Time Limit: As of now, the CBDT has not specified a deadline for filing the return under this section.
• Method of Filing: The return of income must be filed in the manner specified by the CBDT.
• Implications of Non-Compliance: Failure to submit the return required under this section may lead to penalties and other consequences as per the Income-tax Act.
• Eligibility: Any individual who has not furnished an income return under Section 139’s subsections (1), (4), or (5) and whose deadline for filing a return under subsection (1) has passed can file a return under Section 139(8A).

The Consequences of Section 139(8A)

• Enhanced Compliance: The purpose of this section is to increase compliance among taxpayers who have missed the original deadline for filing returns.
• Reduced Litigation: It is expected that this provision will reduce litigation and disputes between taxpayers and tax authorities by providing an opportunity to file returns.
• Increased Tax Collection: By bringing more taxpayers into the fold, this section is likely to improve tax collection.
• Relief for Taxpayers: Taxpayers who missed filing returns due to valid reasons, such as ignorance or oversight, are provided relief under Section 139(8A).
• Deterrent to Non-Compliance: By imposing penalties and other consequences for non-filing, this provision acts as a deterrent to non-compliance.

Answers to Common Questions (FAQs)

• Who is eligible to file a return under Section 139(8A)?
  Any individual whose time limit for filing a return under Subsection (1) has passed and who has not yet provided a return of income under Subsections (1), (4), or (5) of Section 139.
• What is the deadline for filing a return under Section 139(8A)?
  The CBDT has not yet specified a deadline for filing the return under this provision.
• What are the consequences of non-compliance with Section 139(8A)?
  Non-compliance with this section may result in penalties and other consequences as prescribed by the Income-tax Act.
• Can a taxpayer file an amended return under Section 139(8A)?
  Yes, a taxpayer who has filed a return under Section 139(8A) is eligible to file a revised return under the same provision.
• Does Section 139(8A) apply to all taxpayers?
  No, Section 139(8A) only applies to taxpayers who have not filed their returns within the prescribed time limits.

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