top of page
  • Writer's pictureShubham Mishra

Rules of Section 139 of Income Tax Act, 1961:

Updated: Oct 4, 2022








Rule 12: Return of income and return of fringe benefits.

The Income Tax (Second Amendment) Rules, 2019 were announced by the Central Board of Direct Taxes via notification no. 32/2019 dated 1st April 2019, and they became effective on that date. Rule 12 of the Income Tax Rules, 1962 has been modified as a result of the aforementioned Income Tax (Second Amendment) Rules, 2019, and the formats for Forms ITR-1 (SAHAJ), Form ITR-2, Form ITR-3, Form ITR-4 (SUGAM), Form ITR-5, Form ITR-6, Form ITR-7, and Form ITR-V have been updated. In this article, we examine the various modifications made to the 1962 Income Tax Rules by the addition of Rule 12.

ITR-1 form (Sahaj)

In addition, the following groups of people will no longer be able to file an income tax return in Form ITR-1 as of April 1, 2019:

1. Individuals holding unlisted equity shares at any time during the previous year;

2. Individuals claiming a deduction under Section 57 (aside from the deduction claimed under Section 57 (iia);

3. Individuals holding unlisted equity shares;

4. Individuals who are assessable for the entirety or a portion of the income on which TDS has been deducted in the hands of a person other than the assessee.

ITR-4 form (Sugam)

Additionally, as of April 1, 2019, the following groups of people will not be able to submit an ITR-4 return: SUGAM

1. a person with property outside of India (property includes financial stakes in any entities)

2. whoever is located outside of India and has signing authority on any account;

3. The person who receives income from any source outside of India;

4. The person whose income must be divided in accordance with Section 5A;

5. person serving as a director of any corporation;

6. who at any time during the previous year held any unlisted equity shares;

7. a person whose annual gross income exceeds 50 lakh rupees;

8. The person who is assessable for the entirety or a portion of the income on which TDS has been deducted in the hands of a person other than the assessee;

9. The person who is the owner of more than one house property and the income from such house property is chargeable under the head "Income from House Property."

Amendment in Mandatory Electronic Filing of Income Tax Return

As everyone is aware, electronic filing of income tax returns is required, but the following groups of people are exempt from the requirement:

1. a person who was 80 years old or older at any point in the previous year; and

2. Any person submitting a Form ITR-1 (SAHAJ) or Form ITR-4 income tax return (SUGAM).

The individuals in the aforementioned categories may submit their income tax returns in one of the following ways:

1. digitally signed electronically;

2. electronically filing the return using an EVC (electronic verification code);

3. electronically filing the return and submitting the Form ITR-V for return verification;

4. submitting the return on paper.

Rule 12AB: Conditions for furnishing return of income by persons referred to in clause (b) of sub-section (1) of section 139

The CBDT has announced the Income-tax (Ninth Amendment) Rules, 2022, to insert new IT Rule 12AB on conditions for mandatory filing of tax return (ITR) by persons referred to in section 139(1)(b). These conditions include business sale/turnover/receipts exceeding Rs.60 lacs, professional receipts exceeding Rs.10 lacs, aggregate TDS/ TCS exceeding Rs.25,000 (Rs.50,000 in the case of a senior/very senior citizens) and saving banks deposits exceeding Rs.50 lacs, during the previous year.