ITR Update: Filing Tax Return is Compulsory if TDS, TCS Amount Exceed INR 25,000

As per the new income tax rules, those with an aggregate TDS or TCS of INR 25,000 or more during a financial year must file their returns compulsorily. For senior citizens, the amount extends to INR 50,000 or above.

The central government has decided to bring more people into the tax database. As per the finance ministry’s notification, more income groups and people with income will be required to file ITR. The new changes, applicable from April 2022, will help bring more people under the tax.

Another update requires people with deposits of INR 50 lakh or more in a saving bank account to file ITR during a fiscal year. It is regardless of their income levels.

The Finance Act, 2019 inserted the seventh provision into Section 139. It provided a particular criterion that made it compulsory to file ITR, despite an income lesser than the exemption limit. The criterion includes deposition of INR one crore or more in a current account, expenses over INR two lakh for foreign travel, or more than INR one lakh for electricity during the year.

By |2022-06-17T12:58:45+00:00June 17th, 2022|Blogs, News|