Hi,
What is importance of 7th Proviso to Section 139 (1) of the IT act? Who are dependent on it?
Hi,
What is importance of 7th Proviso to Section 139 (1) of the IT act? Who are dependent on it?
Hi Prabha,
This proviso has been included to mandate the filing of return of income while undertaking certain high-value transactions. This also applies to the person who is otherwise not required to file returns for the reason of income below the exemption limit.
The extract of the proviso is shared here below:
Provided also that a person referred to in clause (b), who is not required to furnish a return under this sub-section, and who during the previous year—
(i) has deposited an amount or aggregate of the amounts exceeding one crore rupees in one or more current accounts maintained with a banking company or a co-operative bank; or (ii) has 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; or
(iii) has curred expenditure of an amount or aggregate of the amounts exceeding one lakh rupees towards consumption of electricity; or
(iv) fulfills such other conditions as may be prescribed,
shall furnish a return of his income on or before the due date in such form and verified in such manner and setting forth such other particulars, as may be prescribed.
Regards,
Bhuvana Anand