ITR filing is mandatory if your TDS, TCS is Rs 25,000 or more in a financial year


The government has now made it mandatory for an individual to file income tax returns if his/her total TDS/TCS during the financial year is Rs 25,000 or more even if the individual's income is below the basic exemption limit.


In case of senior citizens, this rule will apply if the individual's aggregate TDS/TCS is Rs 50,000 or more in the year.


Further, an individual whose deposits in a saving bank account are Rs 50 lakh or more in the fiscal will also have to compulsorily file ITR irrespective of his/her income level.


The seventh proviso to Section 139 was inserted by the Finance Act, 2019, which provided for certain criteria which mandated the filing of income-tax returns even when the individual's income is less than the basic exemption limit. Such criteria include

  • deposition of Rs one crore or more in a current account, or

  • expenditure exceeding Rs 2 lakh for foreign travel, or

  • an amount exceeding Rs 1 lakh for electricity consumption during the year.

  • fulfills such other conditions as may be prescribed. (CBDT vide notification no. 37/2022 has notified new Rule 12AB).

Now, vide Notification No. 37/2022, CBDT has notified a new Rule 12AB which prescribes additional conditions which mandate the filing of Income-tax returns despite the fact that income is below the basic exemption limit. These additional criteria are:

  • 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 are Rs 50 lakh or more during the previous year.

This will be applicable for the ITR filing of FY 2021-22 ( AY 2022-23).

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