20 August 2014
Section 139(1) says If total income does not exceed the Maximum amount not chargeable to Tax then it is not mandatory to file the Income Tax Return. Total Income is Income under all heads after deduction under Chapter VIA and excluding the amounts covered u/s 10 i.e., Amount not to be included in total income.
So if after chapter VIA Deduction Taxable Income is less than Rs 2.5 lacs then its not mandatory to file income tax return.
20 August 2014
It is mandatory to File Income tax return in your case
As per proviso to Section 139(1) . Because your total income before deducting deductions under section 10A,10B,10BA and chapter VIA exceeded the maximum amount not chargeable to tax . . So mandatory to file return,however after claiming Chapter VIA tax liability may be Nil.
Note:139(1) Specifically says here income s before giving effect of 10A,10B,10BA and Chapter VIA Deductions
21 August 2014
Sir I have not filed my returns last two years, and my total income is also exceeds the exemption limit but there is no tax liability as i have sufficient savings.So what i will do? Shall I have to pay Rs.5000/- for each year as penalty or there is any remedy to correct the mistake.
CAclubindia
