CBDT has notified additional conditions u/s 139(1) for compulsory return filing

CBDT inserts Rule 12AB to provide further conditions, where filing of ITR is mandatory as per clause (iv) of 7th Proviso to section 139(1) 

CBDT via Notification No. 37/2022 dated 21.04.2022 via Income-tax (Ninth Amendment) Rules, 2022 notified conditions for furnishing a ITR n terms of clause (iv) of the seventh proviso section 139(1) Income-tax Act, 1961 (‘Act’) &  for this purpose, a new Rule 12AB is inserted in the Income-tax Rules, 1962.

Copy of the notification is attached herewith. Notification 

So it is clear that ITR made mandatory for:

1. Gross sale/ turnover/receipts from business exceeds Rs. 60 Lacs
2. Gross receipts from profession exceeds Rs. 10 Lacs
3. Aggregate TDS / TCS is Rs. 25000 (for senior citizen Rs. 50000)
4. Deposit in saving bank account(s) is Rs. 50 Lacs or more in a year

Applicability Additional conditions due date

• According to the notification, these rules will take effect on April 21, 2022, from the date of their publication in the Official Gazette. As a result, it applies to ITR filing for FY 2021-22 or assessment year 202-23.
• The Finance (No. 2) Act of 2019 added the seventh proviso to section 139(1), making it mandatory to file a return of income if a person engages in certain high-value transactions even if their total income is below the basic exemption limit.
• A person who is not a business or a firm is required to file a return of income only if his total income exceeds the maximum amount not chargeable to tax, subject to certain exceptions, as stated in section 139(1)(b). As a result, a person who engages in certain high-value transactions is not required to file a report of income. Section 139 of the Income Tax Act of 1961 is revised to require a person to file his return of income if he engages in certain high-value transactions during the preceding year.

CBDT has notified additional conditions u/s 139(1) for compulsory return filing under following situations:

• Turnover from business exceeds Rs 60 lacs
• Gross receipts from Profession exceeds Rs 10 lacs
• TDS/TCS exceeds Rs 25000
• Deposit in Savings bank account is Rs 50 lacs or more

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