New IT Rule 12AB: Conditions for Mandatory filing of Tax Return (ITR) u/s 139(1)

CBDT has notified the Income-tax (Ninth Amendment) Rules, 2022, to insert new IT Rule 12AB on conditions for mandatory filing of tax return (ITR) by persons referred to in section 139(1)(b), which includes business sale/ turnover/ receipts exceeding Rs. 60 lacs, professional receipts exceeding Rs. 10 lacs, aggregate TDS/ TCS exceeding Rs. 25,000 (Rs. 50,000 in the case of a senior/ very senior citizens) and saving banks deposits exceeding Rs. 50 lacs, during the previous year.

It may be noted that earlier the seventh proviso to IT Section 139 was inserted vide Finance Act, 2019, which has laid down certain criteria for mandatory filing of tax return (ITR) even if Individual’s income is not exceeding the basic exemption limit, which includes deposits of Rs. 1 crore or more in current account, foreign travel expense exceeding Rs. 2 lacs, electricity consumption exceeding Rs. 1 lac during the previous year.

Introduction of new IT Rule 12AB seems to be an attempt by CBDT to expand the taxpayers base.

CBDT Income Tax Notification 37/2022 dt. 21/04/2022: New IT Rule 12AB on conditions for Mandatory filing of Tax Return (ITR)

New IT Rule 12AB: Conditions for Mandatory filing of Tax Return (ITR) u/s 139(1)

New IT Rule 12AB: Conditions for furnishing return of income by persons referred to in clause (b) of sub-section (1) of section 139

The conditions for furnishing return of income in respect of persons referred to in clause (b) of sub-section (1) of section 139 in terms of clause (iv) of the seventh proviso to sub-section (1) of section 139 shall be the following, namely:-

(i) if his total sales, turnover or gross receipts, as the case may be, in the business exceeds sixty lakh rupees during the previous year; or

(ii) if his total gross receipts in profession exceeds ten lakh rupees during the previous year; or

(iii) if the aggregate of tax deducted at source and tax collected at source during the previous year, in the case of the person, is twenty-five thousand rupees or more; or

(iv) the deposit in one or more savings bank account of the person, in aggregate, is rupees fifty lakh or more during the previous year:

Provided that in the case of an individual resident in India who is of the age of sixty years or more, at any time during the relevant previous year, the provision of clause (iii) shall have effect as if for the words “twenty-five thousand”, the words “fifty thousand” had been substituted.

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