January 31, 2023

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No have to have to file ITR if gross full cash flow beneath simple exemption limit

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The exemption limit for assessment year 2020-21 for an individual is Rs 2.5 lakh.


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The exemption limit for assessment calendar year 2020-21 for an particular person is Rs 2.5 lakh.

I have a house in the name of my wife and I. My wife gets the rent in her account as she is co-borrower and rental settlement is performed in her identify. I spend in debt and fairness mutual funds and shares in my wife’s title. As her overall income is down below Rs 2.5 lakh, really should she file profits tax returns?

-Anand Kumpatla

Individual taxpayers are required to file tax returns compulsorily, prior to the thanks date, if their gross complete earnings of the economic 12 months, as computed in accordance with the provisions of the regulation, surpasses the simple exemption restrict. The exemption restrict for evaluation year 2020-21 for an specific is Rs 2.5 lakh.

The gross complete earnings is computed by incorporating up income less than all heads without accounting for expenditure-linked deductions underneath chapter VI A (i.e. portion 80C to 80U) or deduction under area 54/54F/54EC, and so forth. Therefore, if your wife’s gross overall profits does not exceed the standard exemption restrict, it shall not be mandatory for her to file an revenue tax return. Nevertheless, just one may well file a return of income on a voluntary basis also.

My daughter was an NRI in FY2018-19 as properly as FY19-20. She experienced some income in India by way of dividend/fascination and capital gains from sale of shares / mutual fund units, complete of which was less than Rs 1.5 lakh all through each individual of these two several years. She was a scholar overseas in FY 18-19. She was utilized section of 19-20 and drew cash flow by way of income. Is she necessary to file ITR in India for AY 19-20 and AY20-21? Does she have to declare her foreign gained money in her ITR for AY 2020-21? She has paid out taxes in international region with which India does not have DTAA.

-Praveen Godbole

Non-resident Indians (NRIs) are liable to fork out tax in India on money that is been given or is deemed to be received in India in the course of the former yr or cash flow that has accrued or arisen to these NRI in India through the former yr. Profits gained abroad by NRI is not taxed in India and the very same shall be taxed overseas. Further more, the obligation to furnish ITR arises in which the full profits (earned in India) exceeds maximum amount of money not chargeable to tax (Rs 2.5 lakh). Therefore, if your daughter was a non-resident for FY 2018-19 and 2019-20 and her overall revenue, from cash gains and other sources, arising in India was beneath taxable limit, then she will need not file ITR.

The author is director, Nangia Andersen India. Deliver your queries to [email protected]

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