Itr 1 in case of year 1 and itr 4 in case of year 2
Well ishan if your total income does not exceed the basic exemption limit, then you can apply for 15G in order to not deduct tax on interest on FD income. So for future years, you can do that.
Also where your gti does not exceed basic exemption limit, you are not required to file your income unless there is loss that is required to be c/f or there is refund to be claimed.
So if your gti does not exceed basic exemption limit and if you submit form 15G wherever applicable then you will not be required to file itr
Your bank account balance is not to be considered for basic exemption limit. It is the gross total income that is earned during a particular fy that has to be considered.
There can be exempt incomes in your bank account, say for eg. Dividend. This income is not to be considered while calculating gross total income. There can be credits of FD balance. But that FD credit is not your income. Only the interest earned from such FD is your income.
You need to calculate your incomes only.
White income in common terms means that you have declared it. Black income is which you are hiding and not declaring it.
It has nothing to do with filing of itr. I mean that if you have not filed your returns for a particular year, that does not turn your so called white income into black. Or if you have filed your return, your income does not turn white just because you have filed your itr
It is mandatory to file your return when income exceeds basic exemption limit, or there is refund for a fy or there is any loss to be carried forward. And voluntary for others. There is no harm in filing itr if you're income does not exceed basic exemption limit.
Needless to say here is it still remains your white income even if return is not filed because youe intention was not to hide the income but since gross total income was not beyond the basic exemption, you chose not to file the return. Nothing wrong in it. You are abiding the act.
please use the 15G option
CAclubindia
