Section 139 of the Income Tax Act governs the submitting of a return of revenue. A typical understanding is that the duty to file an revenue tax return (ITR) arises if a person earns revenue on which tax has been deducted.
This is just not completely true. Section 139 lists sure conditions whereby return submitting by a person is obligatory even when no tax has been deducted from his revenue or even when he doesn’t earn any revenue.
Recently, the Income Tax Department has enhanced the scope of this provision and notified a couple of extra conditions whereby return submitting is obligatory.
In this write-up, now we have listed all these conditions which require a person to furnish his return of revenue for the Financial Year 2021-22 (Assessment Year 2022-23).
1) If your complete revenue exceeds the fundamental exemption restrict
An particular person shall file the return if his revenue exceeds the utmost exemption restrict. The most exemption restrict for people is:
⦁ Rs. 2.5 lakh for a person;
⦁ Rs. 3 lakh for resident senior citizen (age 60 years or extra however lower than 80 years); and
⦁ Rs. 5 lakh for resident tremendous senior Citizen (age 80 years or extra).
The following deductions and exemptions obtainable to a person shall not be considered to calculate such most exemption restrict:
⦁ Exemption from capital features underneath part 54, 54B, 54D, 54EC, 54F, 54G, 54GA or 54GB.
⦁ Deduction underneath Section 80C to 80U.
For instance, Mr. A (aged 50) has bought a residential home and earned a long-term capital achieve of Rs 10 lakh. He invested such capital features and claimed exemption underneath Section 54. In this case, the entire revenue of Mr. A earlier than claiming exemption is Rs 10 lakh which exceeds the utmost exemption restrict. Thus, submitting of return is obligatory.
This provision shall apply to each resident and non-resident people.
2) If you have got property outdoors India
It is obligatory for a person to furnish a return of revenue if he:
⦁ holds any asset (together with any monetary curiosity in any entity) situated outdoors India (as a beneficiary or in any other case);
⦁ has signing authority in any account situated outdoors India; or
⦁ is a beneficiary of any asset (together with any monetary curiosity in any entity) situated outdoors India.
This provision shall apply to resident and abnormal resident people in India.
3) If you deposit greater than Rs 1 crore in a checking account
An particular person shall file his return if he has deposited Rs 1 crore or extra in a number of present accounts maintained with a financial institution throughout the earlier 12 months.
No reference has been made for the deposit made within the present account maintained with a Post Office. Thus, if a person is depositing greater than Rs 1 crore in a present account with a publish workplace and his revenue is lower than the utmost exemption restrict, he might not be required to furnish his return.
4) If you incur Rs 2 lakh on overseas journey
An particular person will file his return if he has incurred greater than Rs 2 lakh on journey to a overseas nation, both for himself or for another individual throughout the earlier 12 months.
5) If your electrical energy consumption is Rs 1 lakh
An particular person shall file his return if he has incurred greater than Rs 1 lakh on electrical energy consumption throughout the earlier 12 months.
6) If turnover of your corporation is greater than Rs 60 lakh
An particular person should file his return if complete gross sales, turnover, or gross receipt of the enterprise exceeds Rs 60 lakh throughout the earlier 12 months.
7) If gross receipt from occupation is greater than Rs 10 lakh
An particular person shall file his return if the entire gross receipt of the occupation exceeds Rs 10 lakh throughout the earlier 12 months.
8) If TDS and TCS is Rs 25,000 or extra
An Individual (age lower than 60 years) is required to file his return if the combination quantity of tax deducted at supply (TDS) and tax collected at supply (TCS) in his case throughout the earlier 12 months is Rs 25,000 or extra.
9) If TDS and TCS is Rs 50,000 or extra
The threshold restrict of Rs 25,000 shall be thought-about as Rs. 50,000 within the case of resident senior citizen, i.e., whose age is 60 years or extra at any time throughout the related earlier 12 months.
10) If deposit in a saving checking account is Rs 50 lakh or extra
An particular person shall file his return if the combination deposit in a number of financial savings financial institution accounts is Rs 50 lakh or extra throughout the earlier 12 months.
(By CA Naveen Wadhwa, DGM, Taxmann and CA Rahul Singh, Manager, Taxman)
Source: www.financialexpress.com”