What is considered as Gross income - Mutual Fund Redemption or STCG?

Cs26kit (Mr. ) (114 Points)

11 December 2023  

Hi all,

Like several people here, a close person received SMS from IT dept for not filing return. His total income is below taxable limit. My query is,

1. If the mutual fund stcg is around 10k and FD interest income is around 60k and there is no other income, is it mandatory to file ITR in this situation?

2. Is Mutual fund redemption considered as Gross income or is STCG of Redemption considered Gross Income?

3. Should belated ITR be filed in this case or simply replying to Notice in Compliance portal along with giving reasons in the "Expected" section of AIS form enough?

4. If belated NIL ITR is filed before Dec 31 & total taxable income is computed to less than 2.5L (as is the case here) would there be any penalty?

Thanks.

CG