Mandatory filing of IT Return of Detremined AOP (Pvt. Trust)

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Mahesh Kakoo (Querist)
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17 July 2011 Dear Colleagues,

One of my client is Pvt. Trust (AOP), with 4 Beneficiaries, having definite (determined) equal (25%) share of each Beneficiaries.

The said AOP has income form Bank Interest only and is assessed to I. Tax since many years and such filing I. Tax return of itself as NIL Income (as entire income is declared in the I T return of 4 Beneficiaries), mainly to claim refund of TDS on Bank Int.

However since last two years there is no hardly any income of AOP and there is no other income to Beneficiaries. Share in Income of said AOP is also below taxable limit. There is hardly any TDS amount.

In view of the non-taxable income, my client does not wish to file IT return of said AOP and its 4 Beneficiaries. He has no problem is forgoing TDS claim, which any way is meager amount.

Whether non-filing of IT Return will amount to violation of I. Tax Act / Rules OR that in spite of fact income being below taxable limit, filing of IT return is mandatory. Pl.

Pl. advise with supporting section, rule, etc.

Thanks in Advance

Mahesh Kakoo
Advocate

U S Sharma

U S Sharma (Expert)
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17 July 2011 to avoid the misunderstanding by department, its always better to file ITR and get saved from loads of problams which may arise due to non filing.