Currently, a person other than a company or a firm is required to furnish the return of income only if his total income exceeds
the maximum amount not chargeable to tax, subject to certain exceptions. Therefore, a person entering into certain high value
transactions is not necessarily required to furnish his return of income. In order to ensure that persons who enter into certain high
value transactions do furnish their return of income, it is proposed to amend section 139 of the Act so as to provide that a person
shall be mandatorily required to file his return of income, if during the previous year, he -
(i) 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
(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 prescribed conditions, as may be prescribed.
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.
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