Prabeer (B. COM (H) CA & CS Final) 28 December 2012
Filing of income-tax return in relation to assets located outside India is Compulsory:
A person is required to furnish his return of income within the parameters of section 139. In the case of a company / firm, return has to be submitted whether there is any income or loss. However, a person other than company is required to furnish his return of income only if his total income (before giving a few deductions) exceeds the exemption limit.
The above provisions have been amended. Under the amended provisions furnishing of return of income under section 139 from A.Y. 2012-13 onwards has become mandatory if the following conditions are satisfied –
a. The person is resident in India (but other than not ordinarily resident), and
b. He or it has an asset (including financial interest in any entity) located outside India or signing authority in any account located outside India.
If the above two conditions are satisfied, furnishing of return by such person has become mandatory irrespective of the fact whether the person has taxable income or not. The above provisions are not applicable if the concerned person is non-resident or if he / it is resident but not ordinarily resident in India for the relevant assessment year.
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