Who is required to file Return of Income under Income Tax Act?

• July 12, 2020
• CA Chandan Agarwal's Office

1. Sec 139 of Income Tax Act

a. As per sec 139(1), being a company or a firm [mandatorily required to file Return of Income (ROI)] ; or being a person other than a company or a firm, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax [if taxable income exceeds maximum amount not chargeable to tax as per slab rates notified in Finance Act is required to file ROI].

 b. As per sixth proviso to sec 139(1), in case of an individual, HUF or an association of persons or a body of individuals whether incorporated or not or an artificial judicial person, if his total taxable income exceeded the maximum amount which is not chargeable to income-tax without giving effect to sec 10(38) [any income arising from long term capital gains from an equity shares in a company or a unit of equity oriented fund or unit of a business trust and such transaction is chargeable to securities transaction tax], sec 10A [Special provision in respect of newly established undertakings in free trade zone, etc.], sec 10B [Special provisions in respect of newly established hundred percent export-oriented undertakings], sec 10BA [Special provisions in respect of export of certain articles or things], sec 54 [Profit on sale of property used for residence.], sec 54B [Capital gain on transfer of land used for agricultural purposes not to be charged in certain cases], sec 54D [Capital gain on compulsory acquisition of lands and buildings not to be charged in certain cases], sec 54EC [Capital gain not to be charged on investment in certain bonds], sec 54F [Capital gain on transfer of certain capital assets not to be charged in case of investment in residential house], sec 54G [Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area], sec 54GA [Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area to any Special Economic Zone], sec 54GB [Capital gain on transfer of residential property not to be charged in certain cases] or Chapter VI-A [Deductions to be made in computing total income].

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