CA Pratik Anand

CA PRATIK ANANDThe due date for filing Income Tax return is very close, in this situation everyone must be aware whether they are required to file ITR or not.

It is required to file Income Tax Return in the following situations:

  • In case of individuals, if gross total income (before allowing any deductions under section 80C to 80U) exceeds Rs.2,50,000/-. This limit is Rs 3,00,000 for senior citizens ( who are more than 60 years old but less than 80 years old) or Rs 5,00,000 for super senior citizens (who are more than 80 years old).
  • In case of a company or a firm irrespective of whether there is any income or loss or NIL income during the financial year, it is mandatory to file income tax return.
  • E filing of Income Tax return is compulsory if you want to claim income tax refund.
  • If you want to carry forward loss under any head of income, it is mandatory to file IT Return.
  • Return filing is mandatory if you are a Resident individual and have an asset or financial interest in an entity located outside of India. (Not applicable to RNORs).
  • If you are a Resident and have signing authority in a foreign account. (Not applicable to RNORs).
  • You are required to file an income tax return when you are in receipt of income derived from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not for profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust.
  • If tax has been deducted from your income, then you must file income tax return to avoid notice from the income tax department as it has information about your income.
  • If you have entered into any transaction listed under the Annual information Return (AIR) then you must file your IT Return as the income already has notice about you being involved in such transactions and may send you a notice asking about your income tax return. Examples of such transactions are sale/ purchase of immovable property above Rs. 30 lakhs, payment through credit card of more than Rs. 2 lakhs during the financial year etc.
  • If you have been filing your income tax return during the previous years then it is advisable that you file income tax return for the current financial year also even though you may not be liable to just to avoid a notice from the income tax department.
  • If you are planning to take a loan or apply for a visa, a proof of return filing may be required from you.

(The author is a Chartered Accountant and founder of youronlinefilings.com, an online platform for filing your income tax return, service tax, VAT and tds returns)

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  • sudheer

    Derivative trading what will be the turnover limit for ITR filing ? and how to calculate turnover ?

    • Varma alluri

      Profits from trading in the F&O market will be considered as business income.
      This will be added to your income and the total will be subject to taxation at the applicable income tax slab rate.
      For any Income Tax Queries:
      Call / whatsapp : 9052535440
      write to me: Dsssvtax@gmail.com

  • M. Bhattacharyya

    I am a retiree and my main income is from the bank interest. I also deal with trading of shares and derivatives. I am particularly interest to know about dealing of F&O gain/loss in Income Tax. If there is any gain/loss on F&O segment, it is not clear to me whether it can be considered only as business income/loss or it can also be treated as short term loss/gain.

    As an investor I normally trade in equity shares. But in FY 2015-16, I had indulged in derivative trading also and incurred losses. The position for both equity & derivate trading is as under:
    1. Short term capital loss (trading of shares) Rs. 3000/-
    2. Loss in F&O segment (Future & Options) – approx. 2.5 lakhs

    Till now, I have been submitting my return in IPR-2 and doing it myself.

    Kindly advise :

    1. Whether loss on account of derivative trading can be shown under short term
    capital loss along with loss on account of trading of shares and if so, whether this
    can be carried forward in future years and IPR-2 can be used.
    2. What will be the status of income tax payee ?

    Since, 31st July 2016 is the last date for filing return, an early reply will be highly appreciated.

    Thanking you,

    With regards,

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