Rule 163: Return-filing triggers beyond taxable income for non-companies
Rule 163 lists seven alternative conditions for the return-filing obligation referred to in section 263(1)(a)(x), for a person other than a company or firm. A person should check these triggers even where the usual income-based test does not by itself settle the filing obligation.
Official notified Income-tax Rules, 2026Need advice on Rule 163?
This article is for general information. Read the official Rules and applicable Act amendments, including the Taxation and Other Laws (Amendment) Act, 2026. If you need professional advice for your situation, contact Bizeneed.
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Bare law
Rule 163 - Conditions for furnishing return of income by persons other than a company or firm referred to in section 263(1)(a)(x)
(1) The conditions required to be fulfilled in a tax year for the purposes of furnishing return of income in respect of a person other than a company or firm referred to in section 263(1)(a)(x), shall be the following :— (a) if he has deposited an amount or aggregate of the amounts exceeding one crore rupees in one or more current accounts maintained with a banking company or a co-operative bank; or (b) if he has incurred expenditure of an amount or aggregate of the amounts exceeding ₹ 200000 for himself or any other person for travel to a foreign country; or (c) if he has incurred expenditure of an amount or aggregate of the amounts exceeding ₹ 100000 towards consumption of electricity; or (d) if his total sales, turnover or gross receipts, as the case may be, in the business exceeds sixty lakh rupees; or (e) if his total gross receipts in profession exceeds ten lakh rupees; or (f) if the aggregate of tax deducted at source and tax collected at source, in the case of such person is ₹ 25000 or more, and in the case of individual resident of the age of sixty years or more, the amount shall be taken as ₹ 50000 or more; or (g) if he has deposited in his one or more savings bank account, in aggregate, fifty lakh rupees or more.
(2) For the purposes of this rule, the expression ―travel to a foreign country‖ does not include travel to the neighbouring countries or to such places of pilgrimage as the Board may specify in this behalf, by notification.
Rule breakdown
Any listed trigger can matter
The conditions are linked by “or”. They are not a checklist that must all be satisfied together. Apply the current parent provision to the person and tax year, then test each relevant condition.
Keep the filing obligation distinct from the amount of tax ultimately payable.
Account deposits, travel and electricity
The current-account condition is deposits exceeding ₹1 crore across one or more stated bank accounts. Foreign-travel expenditure exceeding ₹2 lakh includes spending for oneself or another person. Electricity-consumption expenditure exceeding ₹1 lakh is separately listed.
The foreign-travel definition excludes neighbouring countries or pilgrimage places as the Board may specify by notification. Do not expand that wording into an unsupported list of excluded destinations.
Business and professional receipts
Business sales, turnover or gross receipts exceeding ₹60 lakh, or professional gross receipts exceeding ₹10 lakh, are separate triggers.
Use the correct business or profession category and reconcile receipts. These are return-filing conditions, not a substitute for the separate audit or presumptive-tax thresholds.
TDS/TCS and savings-bank deposits
Aggregate TDS and TCS of ₹25,000 or more is a trigger, increased to ₹50,000 or more for the stated resident individual aged sixty years or more. Savings-bank deposits of ₹50 lakh or more in one or more accounts are separately listed.
Notice the inclusive “or more” wording here, compared with “exceeding” in other clauses. For example, exactly ₹25,000 reaches the ordinary TDS/TCS threshold, while exactly ₹10 lakh does not exceed the professional-receipts figure.
Prepare a trigger reconciliation
Review bank deposits, professional or business receipts, travel and electricity spending and the tax-credit statement for the tax year. Record the applicable threshold and supporting evidence.
Then select the correct return form and deadline under the current Act and Rules. Satisfying this rule does not itself determine which return form is available.
Key takeaways
Alternative conditions
One applicable trigger can be sufficient under the parent framework.
Different comparison words
Exceeding and or-more tests have different boundaries.
Return duty is distinct
Do not substitute these figures for audit or tax-rate rules.
Practical checklist
- Check every relevant trigger.
- Reconcile accounts, receipts and tax credits.
- Read current notified travel exclusions where relevant.
- Confirm the return form and deadline separately.
Avoid
- Do not equate no tax payable with no filing obligation.
- Do not merge these thresholds with audit tests.
FAQs
Must all seven conditions be met?
No. They are expressed as alternatives.
Does exactly ₹25,000 TDS/TCS meet the ordinary figure?
Yes. That clause uses ₹25,000 or more; the stated resident senior-individual threshold is different.
Are these audit thresholds?
No. They are the specified return-filing conditions; audit requirements need a separate check.
Can expenditure for another person’s foreign travel count?
The travel clause expressly refers to expenditure for oneself or another person, subject to its definition.
Glossary
- Alternative filing trigger
- One of the conditions listed with “or” for the parent return-filing provision.