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
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.
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
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.
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