Amendment of section 139.
39. In section 139 of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 2020,––
(a) in the sixth proviso, after the word, figures and letters “section 10BA”, the words, figures and letters “ or section 54 or section 54B or section 54D or section 54EC or section 54F or section 54G or section 54GA or section 54GB” shall be inserted;
(b) after the sixth proviso, and before Explanation 1 the following proviso shall be inserted, namely:––
“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 incurred expenditure of an amount or aggregate of the amounts exceeding one lakh rupees towards consumption of electricity; or
(iv) fulfils 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.”;
(c) after Explanation 5, the following Explanation shall be inserted, namely:––
‘Explanation 6.-For the purposes of this sub-section,-
(a) “banking company” shall have the meaning assigned to it in clause (i) of the Explanation to section 269SS;
(b) “co-operative bank” shall have the meaning assigned to it in clause (ii) of the Explanation to section 269SS.’.
Notes on Clauses:
Clause 39 of the Bill seeks to amend section 139 of the Incometax Act relating to return of income.
Sub-section (1) of the said section provides for furnishing of return by every person specified therein.
It is proposed to insert a proviso in the said sub-section so as to provide for furnishing of return by a person referred to in clause (b) of the said sub-section (1), who is not required to furnish a return under the said sub-section, if such person during the previous year -
(i) has deposited an amount or aggregate of the amounts exceeding one crore rupees in one or more current account 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 incurred 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.
It is further proposed to amend the said sub-section so as to provide for furnishing of return by a person who is claiming rollover benefit of capital gains, for investment in a house or a bond or any other asset under sections 54, 54B, 54D, 54EC, 54F, 54G, 54GA and 54GB.
These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020- 2021 and subsequent years.
