Please help...
an assessee has income above the taxable limit.however after availing deduction u/s 80c his taxable income becomes nil. Accordingly he didnot file his itr since A.Y. 2009-10. I think this is wrong still i want to know what consequences he may face. Should he file his return for the current assessment years?
yes he can return his file for the A.Y 2011-12 and A.Y 2012-13.
Hi Asmita,
First of all, please clarify the facts. If the income of the assessee is above the taxable limit, then after claiming the deduction under Section 80C the total income cannot be Nil as the limit of deduction under Section 80C is INR 100,000 (excluding the deduction u/s 80CCF).
I am assuming that the total income of the assessee after claiming the deduction under section 80C falls below the taxable limit of INR 180,000 (For the FY 2011-12). As per Section 139 of the Income Tax Act, 1961, every person,if his total income during the previous year exceeds the maximum amount not chargeable to tax, shall file his return of income.
Here Total income refers to the income before claiming the deduction under section 80C. In your case since the total income of the assessee before deduction u/s 80C is above taxable limit, he is under an obligation to file his return of income.
Failure to furnish return:
If the assessee does not files his returns of income before the end of the relevant assessment year, then as per Section 271F of the Income Tax Act, Assessing officer may direct such assessee to pay a penalty of Five Thousand Rupees (INR 5,000 penalty). Further, if return of income is filed after the end of the relevant assessement year, then assessee is required to pay the tax on total income with interest u/s 234A/ B/ C.
Accordingly, the assessee should file his return of income in case his income is above the taxable limit, even though the taxable income falls below the taxable limit after claiming the deduction u/s 80C.
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