Exempt income & itr 2 form

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Zubair Ahmed (Querist)
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16 April 2014 Is it mandatory to fill ITR 2 if the exempted income is more than Rs. 5000/-. Please clarify deduction and exemption.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 April 2014 The rule is that you cannot File ITR-1 if you have income not chargeable to tax in excess of Rs 5000. for eg, you dividend income more than Rs 5000.

please refer proviso to Rule 12(1)(a)

however, whether you need to File ITR - 2 or ITR - 4 shall depend on your income sources.

however, if you are an individual, you are not required to file the tax return if overall income is below the exempted limit.

Sandeep Dharar

Sandeep Dharar (Expert)
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16 April 2014 Yes it is mandatory. U must have to file ITR if u r a earning source. It dosen't matter that ur income is Rs. 100 or Rs. 100Crores.

Zubair Ahmed

Zubair Ahmed (Querist)
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21 April 2014 My query is on behalf of my father. He is a pensioner, in previous year he file ITR - 1. This year he received cash gift of Rs. 40000/- from me which is deposited in his bank account. Gift from son to father is exempted from income tax but it is more than Rs. 5000/- and deposited in his bank account. So do my father need to file ITR - 2 and show this Rs. 40000/- in Exempted Income column ? Or file ITR - 1 like previous year. Please note : Cash is deposited in his bank account.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 April 2014 well the answer remains same as earlier. however, many people still file ITR1. I would suggest against it

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