If an individual has deposited over 1 crore in one or more current accounts or incurred foreign travel of expenditure of over Rs 2 lakh for self or others or spent more than Rs 1 lakh towards electricity consumption, he will have to mandatorily file his return of income even though his total income does not exceed the maximum amount not chargeable to tax.
In its budget proposal 2019-20, the government 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 has entered into certain high-value transactions as mentioned above.
As of now, a person is required to file income tax return only if the total income exceeds the maximum amount not chargeable to tax and 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,” said the budget document. It also proposed to make it mandatory for individuals to file return if they claim rollover benefit of exemption from capital gains tax on investment in specified assets.