New ITR Filing Rules: The government has expanded the scope of income tax return filing to bring more people into the tax bracket, according to the new Income Tax Return (ITR) filing norms.
As per new changes, if the amount of TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) exceeds Rs 25,000 in a year, then Income Tax Return (ITR) has to be filed.
According to the notification issued by the Ministry of Finance, now more income groups and people with income will have to file income tax returns. Amid these changes, more people will be brought under the tax net. The new rules have come into effect on April 21, 2022.
In a conversation with Zee Business, tax expert Ameet Patel decoded the complexity of the new tax rule. He said, according to section 139, the government can notify any class of income whom they can notify to file ITR. In this case, the government has used its power to notify people, Patel said.
If the sales, turnover, or income in the business is more than 60 lakhs, then the return will have to be filed, Patel said citing new ITR norms. He further added that ITR has to be filed even if the income of the professional is more than Rs 10 lakh per annum.
However, the limit of TDS + TCS has been kept at Rs 50,000 for taxpayers who are 60 years or more.
Further, an individual whose deposits in a saving bank account are Rs 50 lakh or more in the fiscal will also have to compulsorily file ITR irrespective of their income level, he added.
The new notification also said that if the amount deposited in the bank savings account is 50 lakh or more in 1 year, then such depositors will also have to file their tax returns, Patel said.
The government believes that with the new changes, the scope of income tax filing will increase, and more and more people will be able to come into the tax net.