No need to have to file ITR if gross total profits underneath standard exemption restrict

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The exemption limit for evaluation 12 months 2020-21 for an unique is Rs 2.5 lakh.

I have a household in the identify of my spouse and I. My spouse receives the rent in her account as she is co-borrower and rental arrangement is done in her title. I make investments in financial debt and equity mutual money and shares in my wife’s name. As her overall earnings is beneath Rs 2.5 lakh, ought to she file earnings tax returns?

-Anand Kumpatla

Person taxpayers are necessary to file tax returns compulsorily, in advance of the because of date, if their gross overall money of the financial calendar year, as computed in accordance with the provisions of the legislation, surpasses the standard exemption restrict. The exemption limit for evaluation 12 months 2020-21 for an specific is Rs 2.5 lakh.

The gross total revenue is computed by including up income below all heads without the need of accounting for investment decision-linked deductions below chapter VI A (i.e. segment 80C to 80U) or deduction underneath section 54/54F/54EC, and so on. Hence, if your wife’s gross whole earnings does not exceed the fundamental exemption limit, it shall not be necessary for her to file an cash flow tax return. However, one particular may file a return of revenue on a voluntary foundation also.

My daughter was an NRI in FY2018-19 as properly as FY19-20. She had some income in India by way of dividend/curiosity and capital gains from sale of shares / mutual fund models, total of which was fewer than Rs 1.5 lakh in the course of each individual of these two yrs. She was a student overseas in FY 18-19. She was used part of 19-20 and drew money by way of salary. Is she expected to file ITR in India for AY 19-20 and AY20-21? Does she have to declare her overseas gained earnings in her ITR for AY 2020-21? She has paid taxes in international nation with which India does not have DTAA.

-Praveen Godbole

Non-resident Indians (NRIs) are liable to pay back tax in India on income that is obtained or is considered to be gained in India through the former calendar year or income that has accrued or arisen to these kinds of NRI in India for the duration of the past yr. Income attained abroad by NRI is not taxed in India and the exact shall be taxed overseas. Further, the obligation to furnish ITR arises where by the total earnings (earned in India) exceeds greatest 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 full profits, from cash gains and other sources, arising in India was below taxable restrict, then she need not file ITR.

The writer is director, Nangia Andersen India. Send your queries to [email protected]