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E FILING SEVENTH PROVISION OF SEC 139(1)

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S.NELLAI NAYAGAM

SPECIAL ASSISTANT

26 Points Posted on 08 August 2020

PLEASE EXPLAIN THE DETAILS OF SEVENTH PROVISION OF SECTION139(1) REQUIRED TO FURNISH RETURN OF INCOME WHILEILING E RETURN. I AM A RETIRED BANK PENSIONER. WHETHER I HAVE TO FURNISH DETAILS I HAVE TAXABLE INCOME NOT EXCEEDING RUPEES FIVE LACS

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Quick Summary

This discussion clarifies the Seventh Provision of Section 139(1) of the Income Tax Act, which mandates e-filing a return of income for individuals undertaking specific high-value transactions, even if their total income is below the taxable limit. These transactions include deposits of ₹1 crore or more in current accounts, foreign travel expenditure exceeding ₹2 Lakhs, or electricity consumption above ₹1 Lakh. The provision aims to capture individuals engaging in significant spending or financial activity, regardless of their overall income level.

annu Goyal

641 Points Posted on 08 August 2020

The seventh proviso to section 139(1) provides for furnishing of return by a person referred to in clause (b) of the said sub-section (1), who is not required to furnish a return under the said sub-section, if such person has undertaken the following high value transactions during the previous year —
1. Deposit of Rs. 1 crore or more in current accounts
2. Expenditure on foreign travel for more than Rs. 2 Lakh
3. Expenditure on the consumption of electricity for more than Rs. 1 Lakh

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.

It's based on basic exemption limit i. e. 250000/-, 300000/-&500000/- According to respective age