Seventh Proviso to Sec 139(1)

As per the Seventh Proviso to Section 139(1) (inserted by Finance Act, 2019 and effective from AY 2020-21):

Even if a person is not otherwise required to file a return of income (i.e., income is below the exemption limit), they must file a return if during the previous year they have:

1. Deposited ₹1 crore or more in one or more current accounts with a bank or cooperative bank;

2. Incurred expenditure of ₹2 lakh or more on foreign travel for self or any other person;

3. Incurred expenditure of ₹1 lakh or more on electricity consumption;

4. Other prescribed conditions (added later via Rules, e.g., owning a motor vehicle, house property in foreign country, etc.).

If you have incurred any such high value transaction in the year select Yes..... Otherwise No.

@ Dhirajlal Rambhia

Dhirajlal Ji, Namaskar.

Your guidance is succinct and precise, always.

Warm Regards

 Thank you....     

Sir, 

Do i need to tick Yes, if my final tax liability is Rs 2,50,000/- ?

No. 

You are filing return because your income is more than basic exemption limit.

The Seventh Proviso to Section 139(1) was inserted by Finance Act 2019 to catch high-value transactions that may not reflect fully in declared income. Even if your total income is below Rs. 3 lakh (basic exemption), you must file an ITR for FY 2025-26 if ANY of the following triggers apply:

1. Deposits of Rs. 1 crore or more in one or more current accounts with a bank or co-operative bank during the year
2. Expenditure of Rs. 2 lakh or more on travel to a foreign country for yourself or any other person
3. Electricity consumption expenditure of Rs. 1 lakh or more during the year
4. TDS or TCS of Rs. 25,000 or more deducted/collected (Rs. 50,000 for senior citizens)
5. Business turnover of Rs. 60 lakh or more
6. Professional gross receipts of Rs. 10 lakh or more
7. Savings bank deposits of Rs. 50 lakh or more

When filing, under "Filing Status" select the relevant reason from the dropdown. Use ITR-1 if you have only salary/one house/other income; use ITR-2 if you have capital gains or multiple properties.

Deadline: July 31, 2026 for individuals not subject to audit. If you miss this, a belated return under Section 139(4) attracts a late fee of Rs. 1,000 (income up to Rs. 5 lakh) or Rs. 5,000 (income above Rs. 5 lakh) under Section 234F, plus interest under Section 234A.

For step-by-step ITR filing guidance: https://taxgarden.in/blog/how-to-read-form-16-file-itr-salaried-ay-2026-27