OBLIGATION TO FILE RETURN OF INCOME EVEN IF THERE IS NO INCOME


In this Article, we will discuss about the cases where the income of a person is Nil or below the maximum amount not chargeable to tax but still they are liable to file their income tax return for AY 2020-21. Seventh proviso to section 139 (1) covers the cases where the income of a person is Nil or below the maximum amount not chargeable to tax but still they are liable to file income tax returns for AY 2020-21.


According to Section 139(1) :


Every person:


(a)Being a company or a firm; or


(b)Being a person other than a company or a firm, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to tax,


shall, on or before due date, furnish a return of his income or the income of such other person during the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed.


SIXTH PROVISO TO SECTION 139(1)


  • Being an Individual or a Hindu Undivided Family or an Association of Persons or a Body of Individuals, whether incorporated or not, or An Artificial Juridical Person,

  • if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year,

  • without giving effect to the provisions of Chapter VI-A

  • exceeded the maximum amount which is not chargeable to tax,

  • shall, on or before the due date,

  • furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed.


SEVENTH PROVISO TO SECTION 139(1)


Provided also that a person referred to in clause (b), who is not required to furnish a return under this sub-section, and who during the previous year—

(i)has deposited an amount or aggregate of the amounts exceeding one crore rupees in one or more current accounts maintained with a banking company or a co-operative bank; or


(ii)has incurred expenditure of an amount or aggregate of the amounts exceeding two lakh rupees for himself or any other person for travel to a foreign country; or


(iii)has incurred expenditure of an amount or aggregate of the amounts exceeding one lakh rupees towards consumption of electricity; or


(iv)fulfills such other conditions as may be prescribed, shall furnish a return of his income on or before the due date in such form and verified in such manner and setting forth such other particulars, as may be prescribed.

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