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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