Tax return in total income less than 2.5 lakhs

My son turned 18. The only income he will have is due to sale of Mutual Fund units. Say, 2 lakhs LTCG. Is it okay to not file tax returns?  I understand the benefits for filing Nil returns but just want to confirm that it's perfectly okay to not file tax returns in his case? 

Thank you.

 

Replies (6)
Quick Summary
This discussion explores whether an individual needs to file a tax return if their total income is less than £2.5 lakh. While it might not be mandatory in all cases, especially with capital gains from mutual funds below the exemption limit, filing is often recommended. This is due to AIS reporting and to avoid potential queries from the Income Tax Department in the future. It's advisable to declare all income and file an Income Tax Return (ITR) to ensure compliance.

In the above example, if LTCG is 3.4 lakhs and Taxable LTCG after 1 lakh exempt is 2.4 lakhs, does he need to file tax returns?

Due to AIS reporting, it is better to file ITR 2 in either case....

Declare the income & file ITR
My agriculture income is rs 92000 and Bank savings rs8000 and dmat stcg rs 42000 and mutual fund rs 8000 do I need to file tax return?

Okay - thank you Dhirajlal and Eswar.

@ Subir Paul..

As per rules your aggregate income is below exemption limit, so its not mandatory to file return.

In case of any query from ITD in future, you may reply with the total aggregate income details...

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