Earlier, an Individual, HUF or partnership was required to file ‘Return of Income’ only if their taxable income crosses the basic exemption limit i.e. rupees two lakh fifty thousand.

Now, The CBDT has made a new announcement on 21st April 2022 to bring more people into the tax bracket. For whom is it applicable?

• Person having turnover/receipts more than Rs 60 lakh from business
• Aggregate of TDS/TCS exceed Rs 25000; Rs 50,000 for senior citizens
• Person having receipts of over Rs 10 lakh from profession
• Aggregate deposit in savings account exceeds Rs 50 lakh

People in employment, and investing in orgnanised routes were already covered previously, this amendment is focussing more on the unorganised retail and small businesses. With increase in adoption of digital transactions, use of banking channels by small businesses has grown over the last few years. These small businesses accepting payments online now need to file the return of income. AIS and TCS will help the government in detecting discrepancies on income reported and expenses incurred.