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Different Situations for Filing Tax Return

BINU.M.S (MCOM MBA ICWAI-Inter(Studying)) (197 Points)

15 July 2009

Dear Friends

Please tell me in what are the situations an individual need to file Tax Return

1,Mr.B had taxable income in the Assessment Year 2007-08.So he filed Income Tax Return for the Assessment Year 2007-08.

3.Mr.MSB joins a Company.This is Mr.MSB's first job,he had taxable income.But by entering into various invesment schemes,he eliminates all his tax liabilities.Now does Mr.MSB need to file any tax return?

Please Share Your Ideas

Thanks In Advance

BINU.M.S

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7 Replies

Deepak (Articled Clerk) (32 Points)
Replied 15 July 2009

An assessee has to file his return voluntarily, if his Gross Total Income exceeds the Basic Exemption Limit.

Gross Total Income means Total Income before Chapter VI A deductions

Basic Exemption Limit for the FY 07-08 and AY 08-09 in case of Individual was Rs 1,10,000; Women assessee being Rs 1,35,000 and for Senior Citizen being Rs 1,85,000.

Thus, in your case,

Case 2 - As his Gross Total Income exceeds Basic Exemption limit and because of his investments, as his taxable income falls below basic exemption limit, Mr. B has to voluntarily file his return

Case 3 - As in case 2, Mr MSB has Total income exceeding basic exemption limit and because of his investments, his total income falls below basic exemption limit, Mr.MSB has to file his return

Thank you

Deepak Bijur

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BINU.M.S (MCOM MBA ICWAI-Inter(Studying)) (197 Points)
Replied 16 July 2009

In Simple words my main question is...............

Mr.B had taxable income.He eliminated all his tax liabilities by entering into various investment schemes.Now tax paid by him is nil.

Now my question is did he required to file any income tax return

And also please tell me what is this voluantary filing of return

(Guest)

Hi Binums,

U/s 139 return to be filed if income(including clubbing of income) exceeds max tax free limit before claiming Chapter VI A.

santhosh (CA) (636 Points)
Replied 16 July 2009

Only Partnership Firms & Companies have to file their return whether are not they have income ,whether or not they earn profit or Loss. But for individuals it is as Tinku said

Jigar (Accounts Executive) (28 Points)
Replied 16 July 2009

Dear Binu,

As per Income Tax act, U/s 139, if gross total income exceeds then non taxable limit before claiming examption under chapter VI A, assessee has to file return voluantarily.

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Santoshkumar (ARTICLES ASSISTANT) (23 Points)
Replied 17 July 2009

Originally posted by :BINUMS

Dear Friends

Please tell me in what are the situations an individual need to file Tax Return

1,Mr.B had taxable income in the Assessment Year 2007-08.So he filed Income Tax Return for the Assessment Year 2007-08.

2.Mr.B had taxable income in the Assessment Year 2008-09 also.But because of various investment plans executed by Mr.B(Like Sec.80C investments and Interest on Housing Loan etc) he escaped from all the tax liabilities.So tax paid by him is nil.Now does he required to file income tax return for the Assessment Year 2008-09 ?

3.Mr.MSB joins a Company.This is Mr.MSB's first job,he had taxable income.But by entering into various invesment schemes,he eliminates all his tax liabilities.Now does Mr.MSB need to file any tax return?

Please Share Your Ideas

DEAR BINUS

MR. B HAS TO FILE HIS RETURN BY SHOWING THE NIL TAX LIABILITY . IT'S AN COMPULSORY PROVISION TO FILE AN RETURN WHEN YOU ARE HAVING AN NIL TAX LIABLITY ALSO. THE SAME PROVISION APPLIES IN CASE OF MR.MSB ALSO THANK U FOR YOUR POSTING.

THANKING YOU

SANTOSHKUMAR

Thanks In Advance
BINU.M.S