Income Taxa Return File: The government has made it mandatory for individual taxpayers whose TDS or TCS limit is Rs 25 thousand or more during the financial year to file income tax returns. Even if the person’s income is not less than the basic exemption limit, it is mandatory for such persons to file income tax.
In the case of senior citizens, this rule will be applicable when the total TDS or TCS of the person is Rs 50,000 or more in the year. Apart from this, a person whose savings bank account has deposits of Rs 50 lakh or more in a financial year will also have to compulsorily file ITR.
What was the criteria before filing ITR
The seventh provision in section 139 of the Finance Act, 2019 provides certain criteria for return filing and makes it mandatory to file ITR if the income is below the exemption limit. Such criteria included depositing Rs 1 crore or more in current account, spending more than Rs 2 lakh for foreign travel or filing ITR if the amount for electricity consumption during the year is more than Rs 1 lakh.
ITR file under new rule
Now, vide Notification No. 37/2022 dated April 22, 2022, CBDT has notified a new Rule 12AB, which lays down additional conditions. Criteria under this- Net turnover in business during the previous year is more than Rs.60 lakhs, Net income from profession during the previous year is more than Rs.10 lakhs. On the other hand, it is mandatory to fill ITR if the total TDS or TCS is more than 25 thousand during a financial year. At the same time, ITR will have to be filed even after depositing more than Rs 50 lakh in the savings account.
what happens if not filled
According to ET’s report, this new rule makes it mandatory to file ITR on TDS of more than Rs 25,000. Due to this many taxpayers will come under this purview. Especially such taxpayers, who are doing high transactions but are not paying TDS. This will bring transparency in tax payment. Some experts say that the government can also send notices to such taxpayers.
