Filling of it return

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This query is : Resolved

Bhubaneswar (Querist)

20 August 2014 Can any one help me to know whether filling of IT return is mandatory if the income cross Rs.250000 and the tax liability is Nil

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

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.

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Ganeshbabu K

Ganeshbabu K (Expert)

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

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Nikhil Kaushik

Nikhil Kaushik (Expert)

20 August 2014 have to agree with Ganesh on account of fifth proviso to section 139(1)

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Bhubaneswar

Bhubaneswar (Querist)

21 August 2014 Thanks to all for your valuable reply, but if anyone will not file the return then, is he will have to pay penalty, if yes how much.

Nikhil Kaushik

Nikhil Kaushik (Expert)

21 August 2014 Rs 5000 under section 271F

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Bhubaneswar

Bhubaneswar (Querist)

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.

Nikhil Kaushik

Nikhil Kaushik (Expert)

21 August 2014 you will have to pay the penalty only if the Tax officer levies the penalty.

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Bhubaneswar

Bhubaneswar (Querist)

21 August 2014 thanks a lot for providing me the details

Nikhil Kaushik

Nikhil Kaushik (Expert)

21 August 2014 you are welcome friend.....

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)