Every Individual other than company or a firm, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax, shall on or before due date, furnish a return of Income.
What if Individual Income still does not exceed maximum amount chargeable to tax, does he/she exempt from filing return of Income, and answer is negative.
With 01/04/2020 following people who falls under this criteria has to file Income Tax Return:
- • has deposited an amount or aggregate of the amounts exceeding one crore rupees in one or more current accounts maintained with a banking company or a co-operative bank; or
• has incurred expenditure of an amount or aggregate of the amounts exceeding two lakh rupees for himself or any other person for travel to a foreign country; or
• has incurred expenditure of an amount or aggregate of the amounts exceeding one lakh rupees towards consumption of electricity; or
Notification No. 37/2022, has notified additional condition which mandates to compulsory filing of Income Tax Return:
- • Total sales/turnover/gross receipts in the business exceed Rs 60 lakh during the previous year
• Gross receipts in profession exceed Rs 10 lakh during the previous year
• Aggregate TDS/TCS during the year is Rs 25000 or more (In the case of senior citizens increased limit of Rs 50,000 shall be applicable)
• Deposits in saving bank account is Rs 50 lakh or more during the previous year.
With above steps, there is no doubt that many people will have to file Income Tax Return and will become part of formal economy. Such steps will ensure that many people who skips filing Income Tax Return now will have to file Income Tax Return.
Name : CA KARAN SINGH
Qualification: CA in practice