Compulsory filing of Income Tax Return, Conditions notified
Section 139(1) of the Income Tax Act, 1961 prescribes the categories of the person who are required to file their return on or before the due date of filing return. Such person includes:
- A company or a firm
- Any person other than a company or firm, if his total income during the previous year exceeds the maximum amount chargeable to the Income Tax.
In addition to the above, the following persons are also required to file income tax return compulsorily as per clauses (i) to (iv) of the seventh proviso to section 139(1):
|
Clause |
Compulsory filers category |
|
Clause (i) |
Person depositing Rs. 1 crore or more in one or more current accounts with a bank or co-operative bank |
|
Clause (ii) |
Person who has incurred expenditure on foreign travel for self or any other person exceeding Rs. 2 Lakhs |
|
Clause (iii) |
Person who has incurred expenditure exceeding Rs. 1 Lakh towards electricity consumption |
|
Clause (iv) |
Person who fulfills such other conditions as may be prescribed |
The CBDT issued Notification No. 37/2022 dated 21st April 2022 by which a new Rule 12AB has been inserted referring to clause (iv) as above by which following persons have also been notified who shall be required to file their income tax return compulsorily:
|
Rule |
Conditions for compulsory filing of ITR |
|
12AB(i) |
If the total sales, turnover or gross receipts in the business exceeds Rs. 60 Lakhs during the previous year |
|
12AB (ii) |
If the gross receipts from profession exceed Rs. 10 Lakhs during the previous year |
|
12AB (iii) |
If the aggregate of TDS/TCS during the previous year is Rs. 25,000 or more (Rs. 50,000 or more in the case of senior citizens) |
|
12AB (iv) |
If the deposits in one or more saving accounts in aggregate are Rs. 50 Lakhs or more during the previous year |
If you fall under any of these categories, you should prepare all the necessary documents and file your ITR on or before the due date of filing return i.e. 31st July.
