Currently, a person (other than company or firm) is required to furnish the return of income only if his total income exceeds maximum amount not chargeable to tax, subject to certain exceptions.
Therefore, a person entering into certain high value transaction is not necessarily required to filed his return of income.
Section 139 has been amended with the effect from April 1, 2020 (from A.Y 2020-21 onwards).
Under this a person, (other than company or firm) shall be mandatorily required to file his return, if during the previous year, he-
- has deposited an amount or aggregate of the amounts exceeding one crore rupees in one or more current account maintained with a banking company or a co-operative bank; or
- has incurred expenditure of an amount or aggregate of the amounts exceeding two lacs rupees for himself or any other person for travel to a foreign country; or
- has incurred expenditure of an amount or aggregate of the amounts exceeding one lacs rupees towards consumption of electricity; or
- fulfills such other prescribed conditions, as may be
Persons claiming exemptions under section 54,54B etc.
Further, currently, a person claiming rollover benefit of exemption from capital gains tax on investment in specified assets like house, bonds etc., is not required to furnish a return of income, if after claim of such rollover benefits, his total income is not more than the maximum amount not chargeable to tax . In order to make furnishing of return compulsory for such persons, it is proposed to amend the sixth proviso to section 139 of the Act to provide that a person who is claiming such rollover benefits on investment in a house or a bond or other assets, under sections 54, 54B, 54D, 54EC, 54F, 54G, 54GA and 54GB of the Act, shall necessarily be required to furnish a return, if before claim of the rollover benefits, his total income is more than the maximum amount not chargeable to tax.
These amendments will take effect from 1st April, 2020 and will, accordingly apply in relation to assessment year 2020-2021 and subsequent assessment years.
| Who is covered by sixth proviso | Individual/HUF/AOP/BOI/Artificial Judicial Person |
| When return is required to be submitted on compulsory basis | If the total income (or net income, taxable income) exceeds the exemption limit without claiming the following exemptions or deductions- 1.Deduction under section 10A, 10B, 10BA, 80C to 80U. 2. Exemptions under section 54, 54B, 54D, 54EC, 54F, 54G, 54GA, and (applicable from A.Y 2020-21 onwards). |