New categories of taxpayers notified for filing income tax return without income exceeding Rs. 2.50 Lakh

New categories of taxpayers notified for filing income tax return without income exceeding Rs. 2.50 Lakh

 5,727 total views

New categories of taxpayers notified for filing income tax return without income exceeding Rs. 2.50 Lakh

Section 139 (1) (b) of the Income-tax Act, 1961 provides that in case of a person other than company or Firm, Return of income is required to be filed if total income exceeds basic exemption limit. Seventh proviso to section 139 (1) lays down certain additional criteria which would trigger requirement of filing of the return even if total income does not exceed basic exemption limit.
CBDT has issued Notification No. 37/2022 dated Apr 21, 2022 for widening the tax net.  There are few more classes of taxpayers who will be required to file the income tax returns even if their income is below the basic exemption limit. It may be noted that a company and a firm are required to file the income tax return even if there is no income or even if they are not carrying out any business activity.
Now, any person, even if income  that does not exceed Rs. 2,50,000 p.a. which is the basic exemption limit to file the return of income under the domestic income tax laws of India, shall be required to file the annual tax return in India if they fall under any of the conditions below:
1. Total sales, turnover or gross receipts in the business exceeds Rs.60 Lakh; or
2. Total gross receipts in profession exceeds Rs.10 Lakh; or
3. Aggregate of withholding taxes (TDS and TCS) is Rs.25,000/- or more, but Rs.50,000/- or more for an individual resident aged 60 years or more; or
4. Aggregate of deposit in one or more savings bank accounts is Rs.50 Lakh or more.
Apart from above, there are some other criterias as well as a result of which filing of return is already made mandatory for following categories of the taxpayers as under
1. Deposit of Rs. 1 crores or more in one or more current accounts with a banking company or co-operative bank
2. Expenditure of Rs. 2 Lakhs or more on foreign travel expenses either for himself or for any other person
3. Expenditure of Rs. 1 lakh or more towards consumption of electricity

Leave a Comment

Your email address will not be published.

the taxtalk

online portal for tax news, update, judgment, article, circular, income tax, gst, notification Simplifying the tax and tax laws is the main motto of the team tax talk, solving