Who is Required to File ITR as per Rule 12AB and Section 139 of the Income-tax Act?
The obligation to file an Income Tax Return (ITR) in India goes beyond merely having taxable income. With increasing digitization and financial transparency, the scope of mandatory ITR filing has expanded. Notably, Section 139(1) of the Income-tax Act, 1961 and the recently inserted Rule 12AB (w.e.f. April 1, 2022) of the Income-tax Rules specify additional conditions under which filing is mandatory—even for those with income below the basic exemption limit.
🔍 Section 139(1) – The Basic Filing Requirement
As per Section 139(1) of the Act:
- Every person (individual, HUF, company, firm, etc.) whose total income exceeds the basic exemption limit is mandatorily required to file an ITR.
💰 Basic Exemption Limits (AY 2024–25):
- ₹2.5 lakh (individuals below 60 years)
- ₹3 lakh (senior citizens between 60–80 years)
- ₹5 lakh (super senior citizens 80+ years)
⚖️ Rule 12AB – Mandatory ITR Filing Even if Income < Exemption Limit
Introduced to curb tax evasion and expand the tax base, Rule 12AB mandates filing of ITR in the following cases even if your income is below the threshold:
As per Rule 12AB, you must file ITR if you satisfy any of the following:
- 💳 Deposits in Bank Accounts: You deposited ₹1 crore or more in one or more current accounts in a financial year.
- ✈️ Foreign Travel: You spent ₹2 lakh or more on foreign travel for yourself or any other person.
- 🧾 High Electricity Bill: You incurred electricity expenses exceeding ₹1 lakh in a financial year.
- 💹 Turnover/Business Receipts:
- Business turnover > ₹60 lakh
- Professional receipts > ₹10 lakh
- TDS/TCS > ₹25,000 (₹50,000 for senior citizens)
- 🧮 Savings Account Interest: If aggregate TDS or TCS is ₹25,000 or more during the year (₹50,000 for senior citizens), even without any other source of income.
- 🏘️ Ownership of Assets/Foreign Income: If you own assets or financial interest outside India or are a signing authority in a foreign account.
📌 Additional Notes:
- Filing is voluntary if none of the above apply and income is below the exemption limit.
- Under presumptive taxation (Section 44AD/44ADA), ITR filing may still be required even if profits are lower than deemed rates.
🧾 Why It Matters
Filing ITR ensures:
- Legal compliance
- Easy loan/scholarship applications
- Visa processing
- Carry forward of losses and refund claims
✅ Conclusion
Even if your income is not taxable, Rule 12AB and Section 139 may still require you to file an ITR based on your financial transactions. With enhanced data monitoring, the Income Tax Department can detect non-compliance easily—so staying proactive and compliant is key.
🕓 Deadline for FY 2024–25: September 15, 2025 (Non-audit cases)