CBDT, recently notified the additional conditions (as per wide Notification No. 37/2022 dated 21st April 2022) to widen the tax base, which makes it mandatory to file Income Tax Returns (ITR) if certain conditions are met by specified taxpayers referred to in section 139(1)(b) of the Income Tax Act, 1961.
As per section 139(1)(b), a person other than a company or a firm is required to file the Income Tax Return before the due date prescribed, if his total income or the total income of any other person in respect of which he is assessable under the Income Tax Act, exceeds the maximum amount not chargeable to income tax, during the relevant previous year. It means if you are a person other than a firm or a company you need to mandatorily file an Income Tax return (before the due date) if your income exceeds the basic exemption limit given in the slab rate in the relevant previous year.
Currently, apart from the above basic condition if a person other than a company or a firm meets any of the following conditions they need to mandatorily file the Income Tax Return (ITR).
● If deposited an amount in aggregate exceeding Rupees 1 crore or more in one or more current accounts maintained with banking companies or co-operative banks, in the relevant financial year, or
● If incurred an expenditure amounting to Rupees 2 lakhs or more for the purpose of foreign travel of own or any other person, or
● If incurred an expenditure of Rupees 1 lakh or more towards the consumption of electricity.
Now, CBDT notified a new Rule 12AB of the Income Tax Rules, 1962, which states that if a person apart from a company or firm meets the following additional conditions, then also he is mandatory required to file the Income Tax Return (ITR) under Income Tax Act, 1961 before the due date prescribed for such person.
● In case, sales, turnover, or gross receipts from the business exceeds Rupees 60 lakhs, or
● In case, total gross receipts from the profession are more than Rupees 10 lakhs, or
● In case, the aggregate of withholding taxes i.e, tax deducted at source (TDS) or tax collected at source (TCS) is Rupees 25,000 or more. The limit is Rupees 50,000 or more for the individual resident who has attained the status of senior citizen (aged 60 years or more), or
● If deposited in aggregate the amount Rupees 50 lakhs or more in savings accounts maintained with banks.
As per the notification, the new rule 12AB shall come into force from the date of notification. Hence, the additional conditions shall be applicable from the assessment year 2022-23 and onwards.
So, if you meet any of the above said conditions don’t forget to file your Income Tax Return (ITR) before the due date, even though your total income doesn’t exceed the maximum amount chargeable to tax. If you fail to do so penalty or interest shall be levied.
If you need any assistance in filing the Income Tax Return (ITR) or have any queries feel free to reach out to our team of experts. We are always ready to assist you 🙂
