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Tax exemptions for women entrepreneur

Shiva Prakash (Promoter) (30 Points)

20 November 2016

My wife runs Painting Classes and easily earns about 20 to 30 K in a month.She has PAN number and has a Bank Account, Is it customary to file IT Returns if income is within 2.5 lakhs. Now with the current scenario will she be questioned by the IT Dept

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3 Replies

Hitesh Khanna (Accounting & Finance Taxation Company Law Audit ) (839 Points)
Replied 21 November 2016

If your Gross Total Income is within the Exemption limit ie Rs. 2.5 Lacs , you can Opt not to file the return as well .
Whether the Department will question or not varies from person to person and case to case.

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Shiva Prakash (Promoter) (30 Points)
Replied 21 November 2016

Is it not Gross income less expenses less savings under Sec 80 C contribute to net income of 2.5 that will be exempted

Suppose our Gross Income from class fees is Rs 3,60,000/-

Less incurrred for running the classes

Rent, Telephone, Travel,Art Books and Materials etc : 1,20,000/-

Net Income is Rs 2,40,000/-

Less Savings under SEC 80 C 50,000/-

Taxable income Rs 1,90,000/-*

*This is less than 2.5 lacs so exempt.

Pls clarify

Shivangi Garg (Practicing Chartered Accountant) (110 Points)
Replied 21 November 2016

An income tax return is required to be filed if the gross total income earned by you exceeds Rs 2.5 lakh. Gross total income is the total income before allowing any deductions under Section 80C-80U of the Income Tax Act.