The CENTRAL BOARD OF DIRECT TAXES on 21st April 2022 notified a new rule under the income tax rules 1962 namely rule 12AB specifying the conditions under which person is required to file income tax tax return. The notification is increasing the scope of person liable to file income tax return. This rule will definitely increase the number of income tax return filer substantially this year. The rule is applicable for the Assessment year 2022-23.
Tax filer are categorized on the basis of Sales of Business, Receipt of Professional, Deduction of TDS and Deposit in Saving bank account. In the Income-tax Rules, 1962, after rule 12AA, the following rule shall be inserted, namely:
’12AB. Conditions for furnishing return of income by persons referred to in clause (b) of sub-section (1) of section 139.–
The conditions for furnishing return of income in respect of persons referred to in clause (b) of sub-section (1) of section 139 in terms of clause (iv) of the seventh proviso to sub-section (1) of section 139 shall be the following, namely: –
(i) if his total sales, turnover or gross receipts, as the case may be, in the business exceeds sixty lakh rupees during the previous year; or
(ii) if his total gross receipts in profession exceeds ten lakh rupees during the previous year; or
(iii) if the aggregate of tax deducted at source and tax collected at source during the previous year, in the case of the person, is twenty-five thousand rupees or more; or
(iv) the deposit in one or more savings bank account of the person, in aggregate, is rupees fifty lakh or more during the previous year:
Provided that in the case of an individual resident in India who is of the age of sixty years or more, at any time during the relevant previous year, the provision of clause (iii) shall have effect as if for the words “twenty-five thousand”, the words “fifty thousand” had been substituted.’.
[Notification No. 37/2022/F.No. 370142/01/2020-TPL(Part1)
