{"id":9394,"date":"2026-03-19T08:52:00","date_gmt":"2026-03-19T08:52:00","guid":{"rendered":"https:\/\/margbooks.com\/blogs\/?p=9394"},"modified":"2026-03-19T08:52:04","modified_gmt":"2026-03-19T08:52:04","slug":"how-income-tax-act-139-1-affects-salaried-individuals-and-businesses","status":"publish","type":"post","link":"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/","title":{"rendered":"How Income Tax Act 139 1 Affects Salaried Individuals and Businesses?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #1c6e70;color:#1c6e70\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #1c6e70;color:#1c6e70\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#Understanding_Income_Tax_Act_139_1\" title=\"Understanding Income Tax Act 139 1\">Understanding Income Tax Act 139 1<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#Who_is_Required_To_Correspond_Section_139_Part_1\" title=\"Who is Required To Correspond Section 139 Part 1?\">Who is Required To Correspond Section 139 Part 1?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#Mandatory_Filing_Even_Below_Threshold\" title=\"Mandatory Filing Even Below Threshold\">Mandatory Filing Even Below Threshold<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#Due_Dates_Under_Income_Tax_Act_139_1\" title=\"Due Dates Under Income Tax Act 139 1\">Due Dates Under Income Tax Act 139 1<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#Audit_Services_Businesses_Need\" title=\"Audit Services Businesses Need\">Audit Services Businesses Need<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#Transfer_Pricing_Cases\" title=\"Transfer Pricing Cases\">Transfer Pricing Cases<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#Impact_on_Salaried_Personnel\" title=\"Impact on Salaried Personnel\">Impact on Salaried Personnel<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#Example\" title=\"Example:\">Example:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#Foreign_Asset_Disclosure\" title=\"Foreign Asset Disclosure\">Foreign Asset Disclosure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#TDS_Reconciliation\" title=\"TDS Reconciliation\">TDS Reconciliation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#Refund_Eligibility\" title=\"Refund Eligibility\">Refund Eligibility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#Practical_Example\" title=\"Practical Example\">Practical Example<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#Impact_on_the_Businesses_and_MSMEs\" title=\"Impact on the Businesses and MSMEs\">Impact on the Businesses and MSMEs<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#Example-2\" title=\"Example:\">Example:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#Audit_Requirement\" title=\"Audit Requirement\">Audit Requirement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#Carry_Forward_of_Losses\" title=\"Carry Forward of Losses\">Carry Forward of Losses<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#Penalties_and_Consequences\" title=\"Penalties and Consequences\">Penalties and Consequences<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#Interest_Under_Section_234A\" title=\"Interest Under Section 234A\">Interest Under Section 234A<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#Elimination_of_Carry_Forward_Benefit\" title=\"Elimination of Carry Forward Benefit\">Elimination of Carry Forward Benefit<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#Role_of_Proper_Record_Keeping\" title=\"Role of Proper Record Keeping\">Role of Proper Record Keeping<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#Practical_Indian_Scenarios\" title=\"Practical Indian Scenarios\">Practical Indian Scenarios<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#Company_Requiring_Tax_Audit\" title=\"Company Requiring Tax Audit\">Company Requiring Tax Audit<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/margbooks.com\/blogs\/how-income-tax-act-139-1-affects-salaried-individuals-and-businesses\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>Filing of income tax return is not optional once situations under Income Tax Act 139 1 are triggered. This section of the Income Tax Act, 1961 requires people, firms, and companies to make compulsory returns of their income based on prescribed limits. It also determines when people are due to pay taxes, and how people who must report income are expected to pay taxes even if there is income tax deduction.&nbsp;<\/p>\n\n\n\n<p>Salaried employees, small traders, professionals and companies have to take care of this provision in a good way. Non-compliance results in late fees, interest and denial of financial benefits.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Understanding_Income_Tax_Act_139_1\"><\/span>Understanding Income Tax Act 139 1<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Section 139(1) lays down:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Who needs to fill Income Tax Return (ITR)<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Income thresholds<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Due dates<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Mandatory filing situations from even below the basic exemption limit.<\/li>\n<\/ul>\n\n\n\n<p>It has applicability to individual(s), Hindu Undivided Family, Firms, LLPs and Companies.<\/p>\n\n\n\n<div class=\"btn-div\">\n\n    <a href=\"https:\/\/me9.in\/MBB\" class=\"marg-btn\" target=\"_blank\" rel=\"noopener\">Get Online Accounting Software<\/a>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_is_Required_To_Correspond_Section_139_Part_1\"><\/span>Who is Required To Correspond Section 139 Part 1?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A person must file ITR if the total income exceeds the basic exemption limit under the income tax act 139 1. These are as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u20b92.5 lakh in case of below 60 years<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u20b93 Lakh senior citizens (60 &#8211; 79 years)<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u20b95 lakh for super senior citizen(b) ( above 80 years of age)<\/li>\n<\/ul>\n\n\n\n<p>The limit is with respect to before claiming deductions under Chapter VI-A.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Mandatory_Filing_Even_Below_Threshold\"><\/span>Mandatory Filing Even Below Threshold<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Filing of returns is compulsory in case of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Deposits in savings bank accounts above 50 lakh in a year.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Foreign assets are held.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Expenditure on foreign travel is more than \u20b92 lakh.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Electricity consumption exceeds school prescribed limit.<\/li>\n<\/ul>\n\n\n\n<p>TDS or TCS is more than \u20b925000 (\u20b950000 for senior citizens). Companies and firms have to file returns regardless of income.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Due_Dates_Under_Income_Tax_Act_139_1\"><\/span>Due Dates Under Income Tax Act 139 1<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>31 July of the Assessment Year<br><\/li>\n\n\n\n<li>Example: For the FY 2024-25, due date is 31st July 2025.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Businesses not require audit.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>31 July of the Assessment Year<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Audit_Services_Businesses_Need\"><\/span>Audit Services Businesses Need<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>31st October of the Assessment Year<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Transfer_Pricing_Cases\"><\/span>Transfer Pricing Cases<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>30th November of the Assessment Year.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Missing these dates attracts the consequences under other sections.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_on_Salaried_Personnel\"><\/span>Impact on Salaried Personnel<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In case gross income is more than threshold then return filing is compulsory even if employer has deducted full TDS.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Example\"><\/span>Example:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The earnings of a Delhi worker are \u20b97 Lacs per year. TDS is fully deducted. Return filing is still obligatory under Income Tax Act 139 1.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Foreign_Asset_Disclosure\"><\/span>Foreign Asset Disclosure<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Residents having foreign bank accounts shares or property have to make disclosure from Schedule FA. Non-disclosure is attracting strict penalties as per the Black Money Act.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"TDS_Reconciliation\"><\/span>TDS Reconciliation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Employees must be matched between Form 16 and Form 26AS and AIS. The errors can delay refunds or cause notification. Using proper <a href=\"https:\/\/margbooks.com\/accounting-software.html\">accounting software<\/a> helps to track salary income, deduction, tax deducted at source (TDS) records all along through the year accurately.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Refund_Eligibility\"><\/span>Refund Eligibility<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If extra deduction of TDS is made and return has not been filed then refund by them cannot be claimed. When filing within due date, processing is faster.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Practical_Example\"><\/span>Practical Example<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A mumbai employee misses to file by 31st of july. He files in December:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Pays late fee under Section 234F.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Pays interest in the name of Section 234A if tax payable.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Refund is delayed<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_on_the_Businesses_and_MSMEs\"><\/span>Impact on the Businesses and MSMEs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Small traders under Section 44AD or professionals under Section 44ADA have to file returns even if income has been declared on presumptive basis.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Example-2\"><\/span>Example:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>A small trader in Jaipur claims an income at 8% of turnover in 44AD. It is necessary to file within due date to continue presumptive benefit for future years.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Audit_Requirement\"><\/span>Audit Requirement<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Businesses exceeding turnovers limits:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u20b91 crore of regular businesses<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u20b910 crore where cash transaction is less than 5%.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u20b950 lakh for professionals<\/li>\n<\/ul>\n\n\n\n<p>It must undergo tax audit before submitting form for filing.<\/p>\n\n\n\n<p>A company in Pune crossing audit threshold must file by 31st of October. Delay affects compliance rating or loan approvals. Maintaining proper records using is <a href=\"https:\/\/margbooks.com\/gst-billing-software.html\">GST billing software<\/a> to reduce the error in turnover reporting and reconciliation in audit.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Carry_Forward_of_Losses\"><\/span>Carry Forward of Losses<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Business losses shall be on the basis of return filed within the due date under section 139(1). Late filing results in:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Loss of carry forward of business loss.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Loss of capital loss carry forward.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>This directly has an impact on tax planning.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Penalties_and_Consequences\"><\/span>Penalties and Consequences<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u20b95,000 if filed after due date and before 31st December<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u20b91,000 if total income is not more than \u20b95 lakh<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u20b910,000 if filed after 31 December<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Interest_Under_Section_234A\"><\/span>Interest Under Section 234A<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Interest on Unpaid Taxes Interest is due at 1% per month from due date until filing date.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Elimination_of_Carry_Forward_Benefit\"><\/span>Elimination of Carry Forward Benefit<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Losses under:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Business<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Capital gains<\/li>\n<\/ul>\n\n\n\n<p>Can not be carried forward if the return is not filed on time.<\/p>\n\n\n\n<div class=\"btn-div\">\n\n    <a href=\"https:\/\/me9.in\/MBB\" class=\"marg-btn\" target=\"_blank\" rel=\"noopener\">Get Cloud-Based GST Billing Software<\/a>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Role_of_Proper_Record_Keeping\"><\/span>Role of Proper Record Keeping<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Accurate documentation helps in reducing the compliance risk. Businesses using the platform can:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Track income and expenses<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Prepare Financial Statements<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>To reconcile GST and income figures<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Prepare audit-ready reports<\/li>\n<\/ul>\n\n\n\n<p>Our MargBooks software also makes return data preparation easier for accountants. For salaried employees who engage in additional businesses on the side, it is beneficial to keep separate income records.<\/p>\n\n\n\n<p>During the audit season, professionals have a preference for structured reports created through MargBooks software. As mentioned earlier, to ensure data does not cause any mismatch, data maintenance is taken care of by itself.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Practical_Indian_Scenarios\"><\/span>Practical Indian Scenarios<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Pays \u20b95,000 late fee<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Loses ability to profit forward capital loss<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Refund processing delayed<\/li>\n<\/ul>\n\n\n\n<p>Small Trader Under Presumptive Scheme<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Files before 31 July<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Continues presumptive taxation benefit<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Avoids penalty<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Company_Requiring_Tax_Audit\"><\/span>Company Requiring Tax Audit<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Completing audit by September<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Files by 31 October<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Avoids scrutiny of interest and compliance<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The income tax act 139 1 forms the basis of return filing compliance in India. It specifies the who needs to file, it specifies the when to file and the consequence of delay. Salaried people need to file if they are earning more than the basic exemption or mandatory. Businesses need to ensure they file on time so that they can retain loss carry forward and not liable for a penalty.&nbsp;<\/p>\n\n\n\n<p>Compliance risk is reduced when a firm has proper financial discipline under the <a href=\"https:\/\/margbooks.com\/\">MargBooks software<\/a> and accurate record keeping. Understanding Income Tax Act 139 1, ensuring legal safety, financial transparency, and easy interaction with tax department.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Filing of income tax return is not optional once situations under Income Tax Act 139 1 are triggered. This section of the Income Tax Act, 1961 requires people, firms, and companies to make compulsory returns of their income based on prescribed limits. It also determines when people are due to pay taxes, and how people [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9395,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[1948],"tags":[2546,2547],"class_list":["post-9394","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-income-tax","tag-income-tax-act-1391","tag-income-tax-for-businesses"],"blocksy_meta":[],"blog_post_layout_featured_media_urls":{"thumbnail":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/03\/Income-tax-act-139-1-150x150.webp",150,150,true],"full":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/03\/Income-tax-act-139-1.webp",1200,576,false]},"categories_names":{"1948":{"name":"Income Tax","link":"https:\/\/margbooks.com\/blogs\/category\/income-tax\/"}},"tags_names":{"2546":{"name":"Income Tax Act 139(1)","link":"https:\/\/margbooks.com\/blogs\/tag\/income-tax-act-1391\/"},"2547":{"name":"Income Tax for Businesses","link":"https:\/\/margbooks.com\/blogs\/tag\/income-tax-for-businesses\/"}},"comments_number":"0","wpmagazine_modules_lite_featured_media_urls":{"thumbnail":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/03\/Income-tax-act-139-1-150x150.webp",150,150,true],"cvmm-medium":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/03\/Income-tax-act-139-1-300x300.webp",300,300,true],"cvmm-medium-plus":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/03\/Income-tax-act-139-1-305x207.webp",305,207,true],"cvmm-portrait":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/03\/Income-tax-act-139-1-400x576.webp",400,576,true],"cvmm-medium-square":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/03\/Income-tax-act-139-1-600x576.webp",600,576,true],"cvmm-large":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/03\/Income-tax-act-139-1-1024x576.webp",1024,576,true],"cvmm-small":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/03\/Income-tax-act-139-1-130x95.webp",130,95,true],"full":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/03\/Income-tax-act-139-1.webp",1200,576,false]},"_links":{"self":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts\/9394","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/comments?post=9394"}],"version-history":[{"count":1,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts\/9394\/revisions"}],"predecessor-version":[{"id":9396,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts\/9394\/revisions\/9396"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/media\/9395"}],"wp:attachment":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/media?parent=9394"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/categories?post=9394"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/tags?post=9394"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}