The central government has recently changed the rules for filing income tax returns. Here is everything you need to know.
“Prior to the changes, the general requirement of filing returns was based on income criteria. For individuals, the criterion was that they had to file an IT return if their gross total income exceeded ₹2.5 lakh. Similarly, a senior citizen (60-80 years) had to file a return if the gross total income was more than ₹3 lakh. Abhishek Murali, president of the All India Tax Payers Association (AITPA), said the criterion for a very senior citizen (80 years and above) was an income of more than ₹5 lakh.
New additional rules have now been introduced that are not limited to income.” Even if you have absolutely no income during the year, if any of the following criteria are met, the IT return Filing is a mandatory requirement. Failure to do so will result in fines and fines on the defaulter,” he said.
i) Where tax deducted at source/tax collected at source is ₹25,000 or more
ii) Where the total deposits in savings bank accounts during the year are ₹ 50 lakh or more
iii) For a business: where the gross receipts/sales is ₹ 60 lakh or more (even if there is a loss)
iv) For a Professional: Where the gross receipt is ₹10 lakh or more (even if there is a loss)
These are in addition to the existing non-income rules that were introduced in April 2020:
v) Electricity bills paid – ₹ 1 lakh or more in a year (for all properties owned or rented)
vi) Where foreign travel expenses either for self or for others – ` 2 lakh or more in a year
vii) Deposits in current account of ₹ 1 crore or more during the year.
Therefore, return of income has to be filed in all the above cases irrespective of the income/loss/refund payable to the assessee.
In order to comply with the law in letter and spirit, it would be advisable for the assessees to file the return of income even when in doubt, to avoid penalties and action from the Income Tax Department, Mr. Murali informed.