Who is required to file tax returns?


By CA Vijaykumar Puri ~ Partner, VPRP & Co LLP, Chartered Accountants


This year it is different. The return filing requirements are a bit more complicated.

It is mandatory for an individual to file their Income Tax Return (ITR) if the gross total income exceeds the basic exemption limit. (Rs 2.5 lakhs for persons below 60, Rs 3 lakhs for persons in 60-80 years, Rs 5 lakhs for persons above 80 years).

But on April 21, 2022, the Central Board of Direct Taxes (CBDT) issued a notification — the Income-tax (Ninth Amendment) Rules, 2022 — which provides additional conditions where it is compulsory to file ITR even when the individual’s income is less than basic exemption limit.

Further, back in 2019 as well, certain conditions were prescribed.

The exhuastive list of all conditions are as follows:

1) An individual has to file income tax return if his total sales, turnover, or gross receipts in the business exceeds Rs 60 lakh during the previous year

2) If total gross receipts in profession exceed Rs 10 lakh during the previous year, the person needs to file ITR.

3) If TDS or TCS during the year is Rs 25,000 or more, it is mandatory to file a return of income tax. For senior citizens, this rule will be applicable if the individuals aggregate TDS or TCS is Rs 50,000 or more a financial year.

4) The deposit in one or more savings bank accounts of the person, in aggregate, is Rs 50 lakh or more during the previous year, it is a must to furnish income tax return.

5) If the person deposits Rs 1 crore or more in the current account;

6) Spent Rs 2 lakh or more on foreign travels during the year,

7) Paid Rs 1 lakh or more on electricity bills in aggregate during the year.

Non-filing of tax returns leads to interest and penalty from the Income Tax Authorities.

Should you require any further clarification or information, please write to us at contact@vprpca.com