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Help regarding itr

richa kapoor (student) (114 Points)

16 August 2015

hi everybody, i have a question that recently my brother recieved his pan card,and since he do not have any taxable income do he need to file itr and what are the benefit of filling the itr and how much income should he show there as he is currently working in our family business in which also he is not a registered partner.please help me out

thanks in advance

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5 Replies

Udgam Koomar (Tax Technologist) (1949 Points)
Replied 16 August 2015

If he does not have a taxable income he does not need to file the ITR. Benifits are if you have a refund, this is the only way to get refund, you can carry over the losses to future years, you do not get compliane notices from IT deptt etc.

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Kiran. S (CTO) (745 Points)
Replied 16 August 2015

1] Ur brother received newPAN.

2] Register at https://incometaxindiaefiling.gov.in/

3] after registering the PAN with mobile no, email id and aadhar goto view 26as

4] 26as statement shows various taxes deducted , refund received in the year , AIR Transaction eg shares purchased above 1 lakh, credit card payments above 2 lakhs etc , Short payments of TDs etc

5] If every thing is blank in 26AS and ur brother does not have any income or income less than 2.5 lakhs - he did not file any IT return.

6] But if there are Tax credits then he may have to file return to get refunds

7] if there are AIR transactions then ur brother may get notice if he does not file return.

I hope this is helpful

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MAULIK GANDHI (Tax Assistant) (222 Points)
Replied 17 August 2015

Totally agreed with kiran. But in my opinion you should file your brother's return as it required for income proof for loan, visa etc. it is good that he is working in your family business. Start giving him salary for his work. And that way you will show expeses in your family bussiness books. And tax liabilities on your family business will be less by expenses amount. And your brother capital will buildup which will help him in near future. hope you like my opinion.

Parth Sharma (Practicing Company Secretary) (688 Points)
Replied 17 August 2015

Agreed with Mr. Kirans point. If you have any refund u need to file the ITR to claim the refund. Pls check 26AS

Rajesh (Former Director DRDO) (114 Points)
Replied 17 August 2015

You can get some advantages:

1. You pay around 4.1 Laks to your brother as pay from your family business. That will be shown as expenses in your business and you will save tax on 4.1 Lakh in you business.

2. Open a PPF account of your brother and deposit 1.5 Lakh. He will get 8.4% interest and tax saving benefit.

3. Balance 2.6 Lakhs will be attracting zero tax.

4 File ITR-1 accordingly. Nil Tax return, This will help in getting any loan from banks, as he will be having 4.1 Laks pa as his income.