I had earned taxable income for FY 2015-16. But till now I have not filed the return of income. Can I file return of income now or the time has already lapsed?
– Akash Kumar
For assessment year (AY) 2016-17 (i.e. FY 2015-16), if the income tax returns are not filed within the prescribed due date under section 139(1), then the same can be filed as belated return within one year from the end of the relevant assessment year. Thus, in the instant case, the return for AY 2016-17 can be filed up to March 31, 2018. It is important to note that from AY 2017-18 onwards, the time limit for filing belated return has been reduced by one year and thus, return of AY 2017-18 will have to be filed by March 31, 2018.
My wife earned some long term capital gains (LTCG) on sale of listed shares. She has no other income. Will she be required to file the return of income for AY 2017-18 even though such income is exempt?
– Bhupinder Singh
There has been amendment regarding the requirement of filing return of income by the Finance Act, 2016 with effect from the assessment year 2017-18. According to this, a taxpayer having income from long-term capital gains exempt under Section 10(38) shall be obliged to file the return of income within the due date, if her income ignoring the exemption under Section 10(38) exceeds the basic exemption limit. Thus, you need to look at the amount of exempt income under Section 10(38) and check whether it exceeds the applicable basic exemption limit (i.e. `2.50 lakh for individual whose age is less than 60 years and `3 lakh for individual whose age is 60 years or more but less than 80 years) and accordingly, decide whether she will be required to file the return of income.
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