An individual is required to file Income Tax Return (ITR) for the respective assessment year as per the seventh proviso to section 139(1) even if the income of the taxpayer is below the basic exemption limit.
For the purpose of the seventh proviso to section 139(1), the total income to be considered is below allowing deduction under Chapter VI-A of the Income Tax Act or deduction for capital gains (section 54 to 54GB).
As per the Seventh proviso to section 139(1) if anyone or all the below conditions are satisfied by any person, then filing of Income Tax Return (ITR) is mandatory i.e. only if a person is not required to file their Income Tax Return (ITR) u/s 139(1), but due to fulfilling of any one or all of the below conditions that person is required to file the Income Tax Return (ITR) for the respective financial year:
|(a)*||Whether the person has deposited any amount or aggregates of the amount that exceeds Rs. 1 Crore in one or more current accounts during the previous financial year.|
|(b)**||Whether any person has expended an amount or aggregate of an amount exceeding Rs. 2 Lakh for the purpose of foreign travel either for yourself or for any other person.|
|(C)***||Whether any person has expended any amount or aggregate of an amount exceeding Rs. 1 lakh on the consumption of electricity|
|(a)*||Amount deposited includes cash deposit as well as non cash deposit.|
|(b)**||In the b clause, there are some controversies where clarification needs to be received by the department in the respective cases. For Instance, if Non-resident is sponsoring the expense of the resident for the said foreign travel whether it will cover it or not? These things will be cleared when the cases will get resolved.|
|(C)***||In case of expenditure on electricity, the Landlord has to be cautious about such expenditure in those cases where they have given one of the commercial units on rent/ lease. In such cases, the tenant will pay the bill for electricity consumption on a CA number registered in the name of the Landlord. The landlord in such cases can obtain an affidavit from the tenant in such regard.|
On satisfying the above mentioned condition person has to select Yes, and provide the relevant information accordingly.