WHO IS REQUIRE TO FILE INCOME TAX RETURN [SEC 139(1) : Income tax Act]

Under following situation Income Tax Return Mandatory to file :




  • Any private, public, domestic or foreign country located and/or doing business in India
  • Any firm including LLP (Limited Liability Partnership) or Unlimited Liability Partnership
  • Any resident who has an asset located outside of India (might include financial interest in some entity as well) OR any resident who retains signing authority for an account based outside India 
  • Individual, HUF, AOP, BOI, AJP if Total income without giving effect to provision of "Chapter VI-A & Sec 54/54B/54D/54EC/54F/54G/54GA/54GB ( not 55EE) , during PY, exceed the basic exemption limits i.e Rs 2.5 lakh.

In the following cases, the filing of Income Tax Return is Voluntary :

  • In certain situations individuals or entities are not under compulsory requirement to file the return. In such cases their tax filings are considered as Voluntary returns, which are seen as valid tax returns.

Seventh Proviso to Sec 139(1): Applicable from FY 2019-20 return


Finance Act, 2019 has inserted a new seventh proviso to section 139(1) to provide for mandatory filing of return of income for undertaking certain high-value transactions even though the person is otherwise not required to file a return of income due to the fact that total income is below the basic exemption limit.

This Proviso is applicable to Individual /HUF / AOP / BOI / AJP. This proviso is not applicable to Company or Firm.

As per this Proviso Every person, who is not require to file ROI u/s 139(1), shall be required to filed ROI by due date if during the PY
 
  • Incurred Expenditure of an " amount or aggregate of the amounts" exceeding Rs. 1 lakh towards consumption of electricity ; OR
  • 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
  • Deposited an " amount or aggregate of amounts " exceeding Rs. 1 crore in one or more Current Account maintained with a banking company or a co-operative bank ; OR
  • Fulfill such other conditions as may be prescribed.
For E-Filling Return Visit : https://www.incometaxindiaefiling.gov.in/home
Location: India

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