Export related query

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Mukesh Mittal (Querist)
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10 February 2013 if i am a resident individual who does not files any income tax return ( income below taxable limits)

and i had done export of goods in current year (my income is still below taxable limits).

should i comply with any formalities of Income tax Dept.

Kindly suggest...

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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10 February 2013 Have you applied for the IEC code.
.
Its first requirement will compel you to Income Tax Dept. for obtaining a PAN.
.
You have to show your earnings and have to comply with the requirements under the IT Act for furtherance of your export business.
.

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Mukesh Mittal

Mukesh Mittal (Querist)
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11 February 2013 thanks sir

i had applied for IEC and completed all formalities with DGFT and with Bank as per RBI guidelines. and also claimed the incentives.

i had received the PAN Card around 5 yrs before.
but had not done any formalities with IT Dept. bcz my income was below taxble limits.
(incl. the incentives)

so please suggest me the requirements to comply with the IT Dept.

is it compulsory to file IT Return in my case?

Mukesh Mittal

Mukesh Mittal (Querist)
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14 February 2013 Sir

I am unable to find any information from books.
that when a person makes Export of Goods is it complusory to file return of income or not. because at the time of export we have to provide PAN with DGFT and also with Bank.

Mukesh Mittal

Mukesh Mittal (Querist)
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27 February 2013 Anybody please guide whether it is compulsory to file Return of Income in the above case?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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24 July 2024 If your income is below the taxable limits, you are not required to file an income tax return in India. Here’s a detailed explanation based on your situation:

### Income Tax Filing Requirements:

1. **Taxable Income Threshold**: For individuals below 60 years of age, the basic exemption limit for the financial year 2023-24 (assessment year 2024-25) is up to Rs. 2.5 lakhs. This means if your total income, including any incentives or export proceeds, does not exceed Rs. 2.5 lakhs in a financial year, you are not liable to pay income tax and hence not required to file an income tax return.

2. **Export of Goods**: Export proceeds, including incentives claimed such as under schemes like MEIS or SEIS, are generally considered part of your income. However, if your total income (including export proceeds and incentives) remains below the taxable threshold, you are still not required to file an income tax return.

3. **IEC and PAN**: Since you have an Importer Exporter Code (IEC) and a PAN card, you have fulfilled the regulatory requirements related to exports under DGFT and RBI guidelines. These are essential for managing export transactions and receiving payments.

4. **No Income Tax Return Filing Requirement**: Given your income is below the taxable limit and assuming you have no other taxable income that would require filing (such as income from other sources exceeding Rs. 2.5 lakhs), you do not need to file an income tax return.

### Compliance with Income Tax Department:

- **Non-Filing Declaration**: If you are asked by any authority, including banks or government agencies, for proof of income tax filing, you can declare that your income is below taxable limits and hence you are not required to file an income tax return.

- **Monitoring Income Levels**: It’s advisable to monitor your income levels annually to ensure they remain below the taxable threshold. If your income increases in the future and crosses the threshold, you would then need to start filing income tax returns accordingly.

### Conclusion:

In summary, if your total income for the financial year, including export proceeds and incentives, is below Rs. 2.5 lakhs, you are not legally required to file an income tax return in India. Ensure you keep your PAN card and IEC active and compliant with the respective authorities (IT Department and DGFT/RBI) to avoid any potential compliance issues. If your income situation changes in the future, you may need to reassess your tax obligations and filing requirements accordingly.

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