My wife is a home maker. She is currently doing multiple small businesses from home which includes the following.
1. Teaching people to Craft, Paper quilling, Terracotta jewelry making, flower making etc. She charges on a per hour basis or a package basis case by case. Most of her students include, friends, relatives, neighbors.
2. She also makes art works and sells them to a couple of nearby gift shops.
She deposits her monthly earnings by cash (which varies by season) in a bank either in fixed deposits or recurring deposits. She has given her PAN in the bank as well.
I checked her previous financial year interest earned and it is below 2 lakh.
Questions:
1. Should my wife still file an income tax return or do any e-filing? She hasn't mentioned any source of income / employment in her PAN card application when she applied. 2. Till now the bank or any IT department hasn't asked her the source of her income. Will it become a problem if her bank balance goes up in FDs?
Please advise both as per the law and as per the latest trend of people in such cases.
Note: She cannot get or provide any receipts in her home business.
18 March 2014
Dear friend, You should file the it return and manage her assests, her capital. Year by year her capital and assests are incresed. So it is very good in future... In my view you should file her it return always. Ashish kamthania
CAclubindia
