The Finance Act, 2019 has amended section 139(1) of the Income-tax Act, effective from April 1, 2020, by inserting seventh proviso. The new proviso requires certain individuals to mandatorily file their income tax returns, even if they were previously not required to do so under the Income Tax Act/Rules. The following are the cases, in which this mandatory filing applies, although otherwise exempt under clause (b) of section 139(1):
i) If a person has deposited an amount or a total of amounts exceeding one crore rupees in one or more current accounts with a banking company or a co-operative bank.
ii) If a person has spent an amount or a total of amounts exceeding two lakh rupees on travel to a foreign country for either themselves or someone else.
iii) If a person has spent an amount or a total of amounts exceeding one lakh rupees on electricity consumption.
iv) If a person fulfills any other conditions that may be prescribed/notified by the CBDT.
These individuals must now file their income tax return by the specified due date, following the prescribed form and verification procedure, along with providing other necessary details as determined.
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