What makes you eligible for tax returns? Income Tax Filing Online

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Who Shall File Income Tax Returns as per the New Rules?

In a bid to increase transparency and promote disclosure of income details by the taxpayers, the government has expanded the scope of income tax return filing by notifying Rule 12AB through Income tax (Nineth Amendment) Rules, 2022 vide Notification No. 37/2022 dated 21st April 2022.

As per the newly inserted rule, the following persons, other than a company or firm, shall furnish their return of income even if their total income or the income of any other person in respect of which they are assessable does not exceed Rs. 2.50 lakhs:

  1. if his total sales, turnover or gross receipts, as the case may be, in the business exceeds Rs. 60 lakhs during the previous year; or
  2. if his total gross receipts in profession exceeds Rs. 10 lakhs during the previous year; or
  3. if the aggregate of tax deducted at source and tax collected at source during the previous year, in the case of the person, is Rs. 25,000 or more; or
  4. the deposit in one or more savings bank account of the person, in aggregate, is Rs. 50 lakhs or more during the previous year

However, for clause (iii) above, the limit shall be Rs. 50,000 instead of Rs. 25,000 for a person resident in India and aged 60 years or more.

These conditions are in addition to the existing conditions as prescribed under the 7th proviso to Section 139(1) for filing return of income that includes:

  • Deposit exceeds Rs. 1 crore  in one or more current accounts with a banking company or co-operative bank.
  • Incurring expenditure exceeds Rs. 2 lakhs  for foreign travel of self or any other person.
  • Incurring expenditure exceeds Rs. 1 lakh for consumption of electricity.

Author : Dipen

Date     : 19-Jul-2022