Mandatory ITR Filing

mandatory ITR filing
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Mandatory ITR Filing

Modi Government has been placing a lot of relevance on the power of technology, data mining, data analytics, etc. Every move that the Government makes is based on well-researched results of data available and collected from various sources. Whenever a new amendment is made it is to bring in more transparency and increase the base of taxpayers by tightening the loopholes in the law which the tax evaders have been using to avoid tax.

We have all gotten used to the fact that income tax return filing for non-corporate assessees becomes mandatory only when the total income exceeds the maximum amount which is not chargeable to income tax. It is very likely that many taxpayers, as well as professionals, tend to make a mistake in correctly identifying whether the person is required to furnish the return of income as one or more conditions as mentioned in the proviso to section 139 were satisfied.

As per section 139(1)(b), Every person other than a company or a firm shall file a return of income for the previous year when the income exceeds the maximum amount which is not chargeable to income tax.

Conditions that make ITR  filing mandatory for the persons not required to file ITR u/s 139(1)(b)

Seventh proviso of section 139(1) – If any of the below-mentioned conditions are satisfied despite your total assessable income does not exceed the basic exemption limit you will have to file your return of income.

Clause (i)  – If the total amount deposited in Currents Account/Accounts exceeds Rs 1 Crore during the previous year (irrespective of whether the bank is a Private Bank/ Public Bank or a Co-operative Bank)

Clause (ii)  – If the total expenditure incurred for self or any other person on travel to a foreign country exceeds Rs 2 lakh during the previous year.

Clause (iii)  – If the total expenditure incurred towards the consumption of electricity exceeds Rs 1 lakh during the previous year.

Clause (iv)  – Other condition prescribed vide a CBDT Notification no. 37 dated 21st April 2022

Subclause (i) – If total sales/turnover/gross receipts from business exceed Rs 60 lakhs during the previous year.

Subclause (ii) – If gross receipts from the profession exceed Rs 10 lakhs during the previous year.

Subclause (iii) – If the aggregate of tax deducted at source and tax collected at source exceeds Rs 25,000/- during the previous year. (Note: For senior citizens, if the total of TDS+TCS exceeds Rs 50,000 during the previous year)

Subclause (iv) – If the total deposits in Saving Account/Accounts exceed Rs 50 Lakhs  Crore during the previous year.

The due date for furnishing return where mandatory ITR filing is required will be the same as the due date u/s 139(1).




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About CA Ankita Khetan 188 Articles
Ankita is a Chartered Accountant in practice and holds a Diploma in IFRS (from ACCA, UK). She is also a Commerce PG and Certified Independent Director (from IICA). She holds a certification in Forex and Treasury Management. Her area of expertise is GST and Income tax. She is passionate about reading, writing, and sharing knowledge on areas related to finance and taxation.

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