07 August 2017
In my opinion, merely because you deposited cash in excess of 2 lakhs you need not have to file a return of income. You are supposed to file a return of income only if your income for a year exceeds the maximum amount not chargeable to tax.
Now, the Department MAY want to verify the source of your cash deposit. In this case, if it is needed, they will send you a notice asking you to file a return. If your source is clear you have nothing to worry.
07 August 2017
The filing of IT Return is necessary because if cash is deposited in excess of Rs. 2 Lakhs then the tax payer is compulsorily required to report it.
This is to ensure that the income of the tax payer is in line with cash deposits made by him.
If he says his income is below taxable limit and does not file his return he will not disclose his cash deposits and the government will not get to know the source of cash.
This will defeat entire purpose of demonetization.
Hence he will have to file his return even if it is below taxable limit to report the cash deposit.
07 August 2017
Filing of return is governed by Section 139 and not by what is mentioned in the form. If i am liable to file as per section 139, only then the requirements of the form will apply. The form also contains the details of exempt income. suppose i have no taxable income at all, merely because the form contains a column for exempt income, is a person compelled to file a return?
07 August 2017
The purpose of seeking the Cash Deposit details was to match it with the income profile of the assessee.
If the cash is deposited in excess of Rs 2 Lakhs and no return is filed then this is not possible.
If you want to take a stand that return filing is not required as per Section 139 fair enough.
Be prepared to receive a notice from the the IT Department.
08 August 2017
The notice from the Income Tax Department IF received will require the person to file a return. So what is the harm in it? He is legally entitled to not file a return until such a notice is received. In my first reply I have already said that the Department MAY issue a notice requiring to file a return and that he would not have to worry if the source is clear.
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