Fileing return of income under Seventh proviso to section 139(1),

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Sanjit

not applicable

140 Points Posted on 24 August 2020

If i am a non-working housewife earning interest on SB FDs of Rs 75,000 in total (far below the taxable limit of Rs 2,50,000) but i have undertaken a pleasure trip to Europe in the last financial year where more more than 2 lakhs has been spent

Now what does this mean

(1) Does it mean that Rs 2 lac is used from a bank account where i am the primary holder in order to qualify to file a return of income under Seventh proviso to section 139(1),

(2) If 2 lacs was spent from my husbands account would i qualify to file a return of income under Seventh proviso to section 139(1),

(3) what if i has transferred Rs 2.5 lakhs to my husband's account who in turn spent it for the foreign family trip for 2 would i qualify to file a return of income under Seventh proviso to section 139(1),

Thanks

Replies (2)

Ravi SADhiyan

Practice

4510 Points Posted on 24 August 2020

Originally posted by : Sanjit
	If i am a non-working housewife earning interest on SB FDs of Rs 75,000 in total (far below the taxable limit of Rs 2,50,000) but i have undertaken a pleasure trip to Europe in the last financial year where more more than 2 lakhs has been spent Now what does this mean (1) Does it mean that Rs 2 lac is used from a bank account where i am the primary holder in order to qualify to file a return of income under Seventh proviso to section 139(1), (2) If 2 lacs was spent from my husbands account would i qualify to file a return of income under Seventh proviso to section 139(1), (3) what if i has transferred Rs 2.5 lakhs to my husband's account who in turn spent it for the foreign family trip for 2 would i qualify to file a return of income under Seventh proviso to section 139(1), Thanks

If You have 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;

Than You are liable to file return whether this amount incurred from any Bank Account or in Cash

Thanks with Regards

Ravi SADhiyan

Sagar Patel

Tax and Business Consultant

11616 Points Posted on 24 August 2020

@ Sanjit ji..
As Per My View,..
In order to qualify to file a return of income under Seventh proviso to section 139(1),
1. Yes, it mean that Rs 2 lac is used from a bank account where you are the primary holder or from your cash balance.
2. If 2 lacs was spent from your husbands account, than its his expenditure, not yours..
3. Yes, you can do so...Give Gift of Rs. 2 lakh (it's Exempt as given to Spouse) to husband and than hasband spent this amount for foreign travel expenses, but all this can be done before travel.

In simply, if you incurred expenses from your Cash/bank account, than its your expenses, if your husband spend it's from their account than that is his expenses.