ITR Filing Mandatory if TDS/TCS Rs.25000 or More deducted/ Collected; even If Income is not Chargeable to Tax

Central Board of Direct Taxes (CBDT) vide Income Tax Notification dated 21st April 2022 has made Income Tax Return [ITR] filing compulsory for a person other than a company or a firm whose aggregate of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) during the previous year, in the case of the person, is Twenty-Five Thousand Rupees (Rs.25,000) or more.

As per the Income Tax Act, Filing a Return of income for 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 Act during the previous year exceeded the maximum amount which is not chargeable to income-tax, i.e. the slab limit.

However, to claim credit of TDS/TCS, ITR Filing is compulsory. But there was no mandatory provision for ITR Filing if TDS has been deducted or TCS has been collected.

Now that same has been changed. Now if your aggregate of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) during the previous year, in the case of the person, is Twenty-Five Thousand Rupees (Rs.25,000) or more, you are supposed to File ITR even if your Taxable Income is less than the maximum amount which is not chargeable to Income Tax.

In case of Senior citizens, the Limit is Fifty Thousand Rupees (Rs.50,000)

To Read Notification Download PDF Given Below: