Megha Chakravarty (Others) (38 Points)
15 July 2015Hello friends,
I have been working in non-profits since graduating. my income never exceeds the threshold and i have not filed taxes all these years.
But i have had a credit card since 2009. I just found out it is necessary to file returns if you have a credit card.
Is this accurate? that means i should have filed return since 2009?
How can I rectify the situation? It seems I can file Assesment Year 2014-2015 with fine. But how can I file 2009 to 2014?
Thanks for your help.
CA Suri Kota
(Assistant Manager @ EY)
(955 Points)
Replied 15 July 2015
Priya Singh
(Finance Professional)
(52 Points)
Replied 16 July 2015
I had never heard of this before, but actually it does look like you must file a return if you have a credit card, or if you have a motor vehicle. Please see relevant part of Section 139(1) below:
CA Suri Kota
(Assistant Manager @ EY)
(955 Points)
Replied 16 July 2015
[(1) Every person,—
(a) being a company [or a firm]; or
(b) being a person other than a company [or a firm], if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax,
shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed :
Provided that a person referred to in clause (b), who is not required to furnish a return under this sub-section and residing in such area as may be specified by the Board in this behalf by notification in the Official Gazette, and who [during the previous year incurs an expenditure of fifty thousand rupees or more towards consumption of electricity or] at any time during the previous year fulfils any one of the following conditions, namely :—
(i) is in occupation of an immovable property exceeding a specified floor area, whether by way of ownership, tenancy or otherwise, as may be specified by the Board in this behalf; or
(ii) is the owner or the lessee of a motor vehicle other than a two-wheeled motor vehicle, whether having any detachable side car having extra wheel attached to such two-wheeled motor vehicle or not; or
(iii) [***]
(iv) has incurred expenditure for himself or any other person on travel to any foreign country; or
(v) is the holder of a credit card, not being an "add-on" card, issued by any bank or institution; or
(vi) is a member of a club where entrance fee charged is twenty-five thousand rupees or more,
shall furnish a return, of his income [during any previous year ending before the 1st day of April, 2005], on or before the due date in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed :
Provided further that the Central Government may, by notification in the Official Gazette, specify the class or classes of persons to whom the provisions of the first proviso shall not apply:
Provided also that every company [or a firm] shall furnish on or before the due date the return in respect of its income or loss in every previous year :
[Provided also that a person, being a resident other than not ordinarily resident in India within the meaning of clause (6) of section 6, who is not required to furnish a return under this sub-section and who during the previous year has any asset (including any financial interest in any entity) located outside India or signing authority in any account located outside India, shall furnish, on or before the due date, a return in respect of his income or loss for the previous year in such form and verified in such manner and setting forth such other particulars as may be prescribed :]
[Provided also that every person, being an individual or a Hindu undivided family or an association of persons or a body of individuals, whether incorporated or not, or an artificial juridical person, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year, without giving effect to the provisions of section 10A or section 10B or section 10BA or Chapter VI-A exceeded the maximum amount which is not chargeable to income-tax, shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed.]
Priya,
It says one who is excluded from clause (b) and the other condition is the person shall be residing in such area as prescribed by the Board in official gazzette.
Thanks,
Suri
CAclubindia
