NO INCOME BUT ITR FILING MANDATORY


 Mandatory furnishing of ITR by certain persons.- 

 In order to ensure that persons who entered into certain high value transactions do furnish their return of income , amend in section 139 of Income Tax Act that a person shall be mandatory to file ITR, if during the previous year he- 

i.                Has deposited an amount exceeding 1crore in one or more current account maintained with the banking company or a co-operative bank
OR
ii.              Has incurred expenditure of an amount exceeding 2 lacs for himself or any other person for travel to a foreign country.

OR
iii.              Has incurred expenditure of an amount 1 lacs to wards consumption of electricity   

OR

iv.              A person who is claiming rollover benefits on investment u/s 54,54B,54D,54EC,54F,54GA,54GB of the Act shall also necessarily required to furnish a return, if before claim of the rollover benefits, his total income is more than  the maximum amount not chargeable to tax.
OR

v.           Such other prescribe conditions, as may be prescribed

In Nut shell:  if a person deposited exceeding 1 crore in current account or expend exceeding  2 lacs Rupees for travelling to a foreign country or incurred expenditure exceeding 1 lacs Rupees for consumption of electricity  annually mandatory to file ITR


Author

 CA Pooja Shukla FCA
RYPS & ASSOCIATES LLP
Website:www.ryps.in
Contact No: 9810505547






Comments

  1. Nitin GuptaJuly 15, 2019 at 8:11 AM

    Good Article, keep sharing such information with us..

    ReplyDelete
  2. UnknownJuly 15, 2019 at 2:07 PM

    Very nicely pointed out. It is true that the above amendments are measures to curb tax evasion, in case it existed. Above-mentioned persons have to mandatory file their returns next year onwards because they demonstrated last year that inspite of those heavy transactions, their income were below taxable limit. The article is right in mentioning that if the financial state of affairs of those persons are true that income is not taxable, those assessees have to mandatorily prove it in ink. That's it.

    It appears that you also have noted that FM had mentioned an example of an elephant in her budget speech. It can be inferred from that baseline that nothing by the department is decided on trial and error. The decisions are fact based. For instance, a newspaper daily next day reported that as many as 1.75 lakh persons withdrew more than Rupees 1 crore last year from their current account but did not file their income tax returns. In another instance, many SMEs in non metro cities had consumed enough electricity in lakhs last year as nowadays electric power has become indispensable and reached at all places. However, there might be many small scale power-suppliers in grade 2 cities in residential and commercial areas who gross up Rs. 3-4 lakhs per annum from the receipients and pay Rs. 1 lakh or more as electrical charges to the Government. Hence, I am of the view that limit should have been Rs. 2 lakhs ideally.

    Similarly, agriculturists used to take the benefit of section 54 by investing the capital gains upon sale of asset and did not file ITRs due to which no data was furnished to the income-tax department. Next, all the foreign travellers furnish their PAN either for passport or to travel agent who books the ticket, specially above Rs. 50,000. Herein again, when the income tax department found that their ITRs were not in the system, they wondered that how is it possible to spend such sums if income is below the exemption limit.

    ReplyDelete
  3. UnknownJuly 15, 2019 at 6:21 PM

    Excellent Article

    ReplyDelete
  4. Adv. AVINASH SHUKLAJuly 27, 2019 at 1:25 AM

    Nicee 👍

    ReplyDelete

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