Presently, a person other than a company or a firm is required to furnish Return of Income (ITR) only if his total income exceeds the maximum amount which is not chargeable to tax, subject to certain exceptions.
In the Budget-2019 with the objective to ensure, persons who enter into certain high value transactions, government made amendment in the section 139 of the Income Tax Act-1961, which provide that a person shall be mandatorily required to file his return of income, if during the previous year, he:
- has deposited an amount or aggregate of the amounts exceeding Rs. 1 Crore 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 Rs. 2 Lakh 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 Rs. 1 Lakh towards consumption of electricity; or
- fulfils such other prescribed conditions, as may be prescribed.
Further, In order to make furnishing of return compulsory, government made amendment in 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.
- For example: If your total income exceeds maximum amount which is not chargeable to tax but after claiming the deduction under sections 54, 54B, 54D, 54EC, 54F, 54G, 54GA and 54GB of the Act your income comes to less than maximum amount which is not chargeable to tax, Now in this case from assessment year 2020-2021 you have to file your Income Tax Return.
- This proviso does not apply if the total income of a person including capital gain does not exceed the maximum amount which is not chargeable to tax.
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The contents of this article are solely for informational purpose.
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