Income Tax Return is prescribed under Section 139 of the Income Tax Act, 1961.
For an individual, the general rule under this section is that if his total income [or the total income of any other person in respect of which he is assessable under the said Act] during the previous year exceeded the maximum amount which is not chargeable to income-tax, shall furnish the Income Tax Return. This means that generally speaking, if the total income of an individual is less than the taxable income then he is not required to file Income Tax Return. However, there are exceptions to this general rule. For example, Section 139 itself provides that in the following situations, an individual may be required to file the Income Tax Return even if his total income is less than the taxable income:
- during the previous year incurs an expenditure of fifty thousand rupees or more towards consumption of electricity, or
- at any time during the previous year, is in occupation of an immovable property exceeding a specified floor area, whether by way of ownership, tenancy or otherwise, as may be specified by the Board in this behalf; or
- at any time during the previous year, is the owner or the lessee of a motor vehicle other than a two-wheeled motor vehicle, whether having any detachable side car having extra wheel attached to such two-wheeled motor vehicle or not; or
- at any time during the previous year, has incurred expenditure for himself or any other person on travel to any foreign country; or
- at any time during the previous year, is the holder of a credit card, not being an “add-on” card, issued by any bank or institution; or
- at any time during the previous year, is a member of a club where entrance fee charged is twenty-five thousand rupees or more.
Thus, there may be situations, where an individual may be required under law to file Income Tax Return even if his total income is less than the taxable income.
Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.
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