INCOME TAX RETURN

This query is : Open

abhimanyu (Querist)
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25 February 2020 AN INDIVIDUAL RESIDENT IN INDIA HAS ANNUAL INCOME OF RUPEES 2,80,000/-, which includes Interest of Rs.36,000/- on which TDS of Rupees 3800/- has been deducted, . He sufferred a loss of Rs.1,20,000/- in stock Market.

IS IT MANDATORY ON HIS PART TI FILE INCOME TAX RETURN AS TDS HAS BEEN DEDUCTED IN HIS CASE ALTHOUGH HE IS NOT INTERESTED IN FILING RETURN AND READY TO LOSE AMOUNT OF RUPEES 3800/- DEDUCTED AS TDS.

Eswar Reddy S

Eswar Reddy S (Expert)
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25 February 2020 Resident individual must file ITR if the annual income exceeds 2.5lacs irrespective of tax deduction. Mostly they would have deducted 3600 on 36000 interest. 120000/- loss from share market can't be set off against interest income or other income. It's not a choice to file ITR but it's mandatory to file ITR. Try to file ITR time else there is late for late filing of ITR as per new rules

abhimanyu

abhimanyu (Querist)
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25 February 2020
THANKS SIR VERY MUCH.

SIR, SUPPOSE TOTAL INCOME IS RUPEES 1,80,000 WHETHER IT WILL BE MANDATORY TO FILE RETURN AS TDS HAS BEEN DEDUCTED IN CASE THE INDIVIDUAL CHOOSES TO FORGO REFUND OF TDS.

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abhimanyu

abhimanyu (Querist)
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25 February 2020 I CLARIFY MY POINT. IN CASE ANNUAL INCOME IS BELOW THE EXEMPTION LIMIT BUT TDS HAS BEEN DEDUCTED ON FD, WILL IT BE MANDATORY TO FILE RETURN WHEN REFUND IS NOT REQUIRED AND INDIVIDUAL DOES NOT WANT TO FILE RETURN

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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25 February 2020 Return filing is not mandatory. But based on entries in form 26AS, assessee's will be called upon to file return.If so, better to file return and seek refund to comply with the notice instead of to forgo the refund.

abhimanyu

abhimanyu (Querist)
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25 February 2020 THANKS SIR FOR CLARIFYING THE LEGAL POSITION THAT IN SUCH A SITUATION FILING RETURN IS NOT MANDATORY.

swasti

swasti (Expert)
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26 February 2020 Abhuimanyu, the opinions from Chakrapani Sir must be kept in mind. It is better to file the return and claim the refund rather to invite a notice from Income Tax Department and later on clarifying and filing the return in compliance to the notice.
Secondly, it is you who knows that the Income is below exemption limit. ITD might not be knowing what is the total income earned during the year, unless you file the return.

swasti

swasti (Expert)
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26 February 2020 Sorry, I misspelt. Kindly read Abhimanyu and pardon for the mistake.

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abhimanyu

abhimanyu (Querist)
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26 February 2020 Thanks Swasti Ji. My query was legal whether a person having total income (including the one on which TDS has been deducted) is below exemption limited is mandatorily required to file tax return ans Answer is NO.

Eswar Reddy S

Eswar Reddy S (Expert)
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29 February 2020 But share market loss is different types , if there is loss in F&O then you must audit your records and file ITR. The initial question has loss. However loss in equity component doesn't require audit.. People generally get notice for trading in NSE,BSE & MCX