ITR filing compulsory if total income with exempt LTCG from Equity shares exceeds basic exemption limit

Existing provisions of section 139 (1) provide that every person referred to therein shall file a return of income on or before the due date. The sixth proviso to the said section provides that every person, being an individual or Hindu undivided family or an association of person or a body of individual, whether incorporated or not or any artificial juridical person, if his total income or of any other person in respect of which he is assessable under this Act during the previous year, without giving effect to provisions of section 10A or section 10B or section 10BA or Chapter VI-A, exceeds the maximum amount which is not chargeable to income tax shall be liable to furnish return on or before the due date.

Implications: If the total income (taxable income) of an assessee is Rs. 250000/- excluding Rs. 50000/- as LTCG from equity shares exempt u/s 10(38), currently he/she is not under any obligation to file his/her return u/s 139(1). However as per the proposed amendment he/she shall also be liable to file return of income.