ITR rules: Filing of tax return compulsory if TDS, TCS amount above Rs 25,000

As per the new income tax rules, those whose aggregate tax deducted at source (TDS) or tax collected at source (TCS) during a fiscal year is Rs 25,000 or more have to file their tax returns mandatorily.

In the case of senior citizens, the aggregate TDS or TCS amount for ITR filing is Rs 50,000 or above.

The Centre has expanded the scope of ITR filing to bring more people into tax data base. According to the notification issued by the Ministry of Finance, now more income groups and people with in-come will have to file income tax returns. With the new changes, more people will be brought under the tax net. The new rules have come into effect from April 2022.

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 I

The seventh provision to Section 139 was inserted by the Finance Act, 2019, which provided for certain criteria which mandated the filing of income-tax returns even when the individual’s income is less than the basic exemption limit. Such criteria include deposition of Rs one crore or more in a current account, expenditure exceeding Rs 2 lakh for foreign travel, or an amount exceeding Rs 1 lakh for electricity consumption during the year.

According to tax experts, making tax filing mandatory for those with professional receipts exceeding Rs 10 lakh would add to their filing compliance because such taxpayers (carrying out business) might be maintaining books of accounts pre-scribed under Section 44AA of the IT Act.

In 2019, the government had broadened the tax-filing criteria on similar lines — for those depositing Rs 1 crore and more in the current account; spending Rs 2 lakh or more on foreign travel; paying electricity bills of Rs 1 lakh and more; claiming tax exemption on investment in houses, etc.