The Income-tax (Ninth Amendment) Rules, 2022

The Central Board of Direct Taxes vides a Notification dated 21st April 2022 has issued the Income-tax (Ninth Amendment) Rules, 2022. With this amendment, CBDT notified the Additional conditions for compulsory Income Tax return filing. In this article, we will look at the Additional conditions for compulsory Income Tax return filing notified via the Income-tax (Ninth Amendment) Rules, 2022. Offline utility for filing ITR 1, ITR 4 for AY 2022-23

The Gist of the Income-tax (Ninth Amendment) Rules

Income-tax (Ninth Amendment) Rules, 2022 has notified the conditions for furnishing a return of income in terms of clause (iv) of the seventh proviso to sub-section (1) of section 139 Income-tax Act, 1961 (‘Act’) and for this purpose, a new Rule 12AB is inserted in the Income-tax Rules, 1962. The CBDT notification states that The Income-tax (Ninth Amendment) Rules, 2022 shall come into force with effect from the date of their publication in the Official Gazette which is 21st April 2022. Thus, it is applicable for the filing of ITR for the FY 2021-22 or assessment year 202-23. For more details on ITR Forms for the AY 2022-23 or FY 2021-22, click here

Additional Conditions for Compulsory Income Tax Return Filing - Rule 12AB

The Income-tax (Ninth Amendment) Rules, 2022 has notified the Rule 12AB which Prescribes the following four additional conditions for furnishing return of income. A person other than a company or a firm, if his total income or the total income of any other person in respect of which he is assessable under this Income Tax Act during the previous year exceeds the following thresholds, shall furnish income tax returns:

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
If his total gross receipts in profession exceed ten lakh rupees during the previous year; or
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
The deposit in one or more savings bank accounts of the person, in aggregate, is rupees fifty lakh or more during the previous year

Note: Mandatory furnishing of return of income under the seventh proviso to section 139(1) is not based on income, but based on certain high-value transactions.

Applicability of Additional Conditions ITR filing

As per the Income-tax (Ninth Amendment) Rules, 2022, it is mandatory for an individual or HUF or any other person except a company and a firm to file an income tax return if his total TDS/TCS is at least Rs. 25,000 in a financial year even if his total income is below the basic exemption limit. In the case of senior citizens, this rule will apply if the individual’s aggregate TDS/TCS is Rs. 50,000 or more in a year. If an individual deposits Rs. 50 Lakh or more in his savings bank account in a financial year, he is required to compulsorily file income-tax return irrespective of his income level below the basic exemption limit of Rs. 2,50,000 or Rs. 3,00,000 or Rs. 5,00,000 for a general taxpayer, senior citizen (60 years or more), or a very senior citizen (80 years or more) respectively. This rule applies equally to senior citizens also. Income-tax (Ninth Amendment) Rules, 2022 covers the savings bank accounts maintained with any bank including cooperative banks and post offices. Please refer to the following table for a better understanding of the Additional conditions for compulsory Income Tax return filing - Rule 12AB:

Sl.No	Mandatory Furnishing of income-tax returns (ITR) (other than a company and a firm)
Note: If any one of the following conditions is fulfilled, return filing will become compulsory
1	Where the total income exceeds the basic exemption limit or,
2	Deposit of more than Rs. 1 crore in current accounts or,
3	Expenditure on foreign travel above Rs. 2 Lakh or,
4	Expenditure on electricity bills above Rs. 1 Lakh or,
5	Turnover from business exceeds Rs. 60 Lakh or,
6	Receipts from Profession exceed Rs. 10 Lakh or,
7	Aggregate TDS/TCS is Rs. 25,000 or more (Rs. 50,000 for senior citizen) or,
8	Deposit of more than Rs. 50 Lakh in savings bank accounts

The official Notification pertaining to The Income-tax (Ninth Amendment) Rules, 2022 is as follows:

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Frequently Asked Questions

Common questions about Income Tax Ninth Amendment Rules 2022.

The Income-tax (Ninth Amendment) Rules, 2022 notifies additional conditions for compulsory filing of income tax returns. It inserts a new Rule 12AB in the Income-tax Rules, 1962, which prescribes four additional conditions under which individuals, HUFs, and other non-corporate entities must file their income tax returns, irrespective of their income level.

Individuals, HUFs, and other non-corporate entities must file income tax returns if any of the following conditions are met: (a) their total sales, turnover, or gross receipts from business exceed Rs. 60 lakh, (b) their total gross receipts from profession exceed Rs. 10 lakh, (c) their aggregate TDS/TCS during the year is Rs. 25,000 or more (Rs. 50,000 for senior citizens), or (d) their deposit in one or more savings bank accounts exceeds Rs. 50 lakh during the year.

The Income-tax (Ninth Amendment) Rules, 2022 came into force on 21st April 2022, the date of its publication in the Official Gazette. Therefore, these new rules are applicable for filing income tax returns for the financial year 2021-22 or assessment year 2022-23.

No, the new rules under Rule 12AB are specifically for individuals, HUFs, and other non-corporate entities. Companies and firms are not covered under these additional conditions for compulsory income tax return filing.

Yes, the new rules require individuals, HUFs, and other non-corporate entities to file income tax returns if their aggregate TDS/TCS during the previous year is Rs. 25,000 or more. For senior citizens, this threshold is higher at Rs. 50,000.

The new rules cover deposits of Rs. 50 lakh or more in one or more savings bank accounts maintained with any bank, including cooperative banks and post offices, during the previous year.

No, the additional conditions for compulsory income tax return filing under the new rules are not based on income levels. They are based on certain high-value transactions or receipts, such as turnover, professional receipts, TDS/TCS, and bank deposits, irrespective of the individual's or entity's total income.

No, the new rules under Rule 12AB introduce additional conditions for compulsory income tax return filing. They complement the existing conditions, such as having total income above the basic exemption limit or incurring certain types of expenditures above specified thresholds.

The official notification for the Income-tax (Ninth Amendment) Rules, 2022 is available on the website of the Central Board of Direct Taxes (CBDT) or other government portals. The article also includes a link to the PDF version of the notification.

The article does not mention any specific penalties for not filing income tax returns under the new rules. However, non-compliance with income tax filing requirements can generally attract interest and penalty provisions under the Income-tax Act, 1961, and associated rules.