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

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].

 c. As per seventh proviso to sec 139(1), in case of person other than company or firm and who has 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;

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.

iii. has incurred expenditure of an amount or aggregate of the amounts exceeding one lakh rupees towards consumption of electricity;

iv. fulfils such other conditions as may be prescribed, is required to file ROI irrespective of taxable income.

d. As per sec 139(3), if any person has incurred loss under the head “Profits and gains of business or profession” or under the head “Capital gains” and claims that loss or carried forward any part thereof under sec 72(1), sec 73(2), sec 73A(2), sec 74(1), sec 74(3), or sec 74A(3), then he is required to file ROI under the time limit prescribed under sec 139(1) and as per sec 80, no loss can be carried forward and set off under above sections, if ROI not filed within the time limit prescribed under sec 139(1).

e. As per sec 139(4A), every person who has received income from property held under trust or other legal obligation wholly or partly for charitable or religious purposes or of income being voluntary contribution as referred to in sec 2(24)(iia) shall file ROI if the total income [before giving effect to the provisions of sec 11 and sec 12] in respect of which he is assessable as an authorised representative exceeds maximum amount not chargeable to tax.

f. As per sec 139(4B), the chief executive officer (CEO) [whether such CEO is known by secretary or by other designation] of every political party shall file ROI if the total income of such political party [before giving effect to the provisions of sec 13A] exceeds maximum amount not chargeable to tax.

 g. As per sec 139(4C), every :-

i. Research association referred in sec 10(21);

ii. News agency referred in sec 10(22B);

iii. Association or institution referred to in sec 10(23A);

iv. Person referred in sec 10(23AAA);

v. Institution referred in sec 10(23B);

vi. Fund or institution referred in sec 10(23C)(iv) or trust or institution referred in sec 10(23C)(v) or any university or other educational institution referred in sec 10(23C)(iiiab) or sec 10(23C)(iiiad) or 10(23C)(vi) or any hospital or other medical institution referred in sec 10(23C)(iiiac) or sec 10(23C)(iiiae) or sec 10(23C)(via);

vii. Mutual Fund referred in sec 10(23D);

viii. Securitisation trust referred in sec 10(23DA);

ix. Investor Protection Fund referred in sec 10(23EC) or sec 10(23ED);

x. Core Settlement Guarantee Fund referred in sec 10(23EE);

xi. Venture capital company or venture capital fund referred in sec 10(23FB);

xii. Trade union referred in sec 10(24)(a) or association referred in sec 10(24)(b);

xiii. Board or Authority referred in sec 10(29A);

xiv. Body or authority or Board or Trust or Commission (by whatever name called) referred in sec 10(46);

xv. Infrastructure debt fund referred in sec 10(47), shall file ROI if the total income [before giving effect to the provisions of sec 10] exceeds maximum amount not chargeable to tax.

h. As per sec 139(4D), every university, college or other institution referred in sec 35(1)(ii) and sec 35(1)(iii) which is not required to furnish ROI in any other provisions of this section, shall furnish ROI under this provision.

i. As per sec 139(4E), every business trust which is not required to furnish ROI in any other provisions of this section, shall furnish ROI under this provision.

j. As per sec 139(4F), every investment fund referred in sec 115UB [Tax on income of investment fund and its unit holders] which is not required to furnish ROI in any other provisions of this section, shall furnish ROI under this provision.

2. Sec 115G of Income Tax Act

a. It shall not be necessary for a non-resident indian to furnish ROI under sec 139(1) if-

i. his total income in respect of which he is assessable under this Act during previous year consist of only investment income or income from long term capital gains or both and

ii. the TDS has been deducted from such income.

3. Sec 115A of Income Tax Act

a. As per sub-section(5), it shall not be necessary for an assessee referred in sub-section(1) to file ROI under sec 139(1) if –

i. his or its total income in respect of which he or it is assessable under this Act during the previous year consisted only of income referred to in clause (a) or clause (b) of sub-section (1); and

ii. the tax deductible at source under the provisions of Part B of Chapter XVII has been deducted from such income and the rate of such deduction is not less than the rate specified under clause (a) or, as the case may be, clause (b) of sub-section (1).