DISCLOSURE OF FOREIGN ASSETS AND INCOME IN THE INCOME-TAX RETURN

ENABLING PROVISION

Section 139 of the Income-tax Act, 1961 (“the IT Act”) deals with the filing of return of income. Sub-section (1) to section 139, inter alia, provides that every person whose total income exceeds the maximum amount not chargeable to tax shall file a return of income in the prescribed form and in the prescribed manner before the due date of filing of return of income.

The fourth proviso to section 139(1) provides that a person being a resident, other than a not ordinarily resident, who is not required to file return of income u/s 139(1) shall still be required to file a return of income if he satisfies any of the conditions mentioned in clauses (a) and (b) of the fourth proviso. The said clauses (a) and (b) under the fourth proviso broadly deal with the holding of any asset or being the beneficiary of any asset located outside India.

Therefore, any resident person who holds any asset located outside India or is a beneficiary of any asset located outside India shall be required to file a return of income u/s 139(1) even if the total income of such person does not exceed the prescribed limits. The conditions given under clauses (a) and (b) of the fourth proviso regarding the holding of any asset or being the beneficiary of any asset located outsid