Discontinuation of IT Return

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This discussion addresses the implications of a client wishing to stop filing Income Tax Returns (ITR) from the current financial year. It clarifies that discontinuing returns is permissible if there is no taxable income. The conversation also touches upon the possibility of changing the ITR form if the nature of income shifts, for instance, from business income to salary income. It's confirmed that if a business is closed, only salary income needs to be included.

GJ Consultancy

GJ Consultancy (Querist)

26 December 2020 Respected Sir / ma'am
I have one client whose ITR filled for last 4 year, now he wants to not file return from this year (FY 2019-20) onward. Can i know consequences for the discontinuation of IT return ?
there is one more doubt, what if ITR change from business income (FY 2018-19) to Salary income for this year (FY 2019-20).

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

26 December 2020 No consequence if discontinuance of return in the year no taxable income.
ITR can be changed if there is change in nature of income.

Message likes : 1 times

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

28 December 2020 ITR fllling is subject to the Income Tax Limits set for a particular class of person.

GJ Consultancy

GJ Consultancy (Querist)

30 December 2020 Thanks CA R SEETHARAMAN Sir and Asha Kanta Sharma Maa'm, almost cleared but one doubt remain in mind is that depreciation is must to be claimed as it was claimed in last year return as per business income or not required and only salary income is to be included this year ??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

30 December 2020 Only salary income to be included if business closed.

GJ Consultancy

GJ Consultancy (Querist)

30 December 2020 Thanks CA R SEETHARAMAN Sir,,,

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