If your income is less than threshold limit, no need to file ITR; check details

Published: April 3, 2019 1:41:29 AM

Gifts to relatives are not taxable in the hands of recipient. It is presumed that you have included this money in your income and paid the due taxes on it.

No provisions have been specified in the I-T Act for revision or cancellation of Form 15H. You can pay advance tax on the estimated income within the due dates to avoid any adverse implications.

By Chirag Nangia

If income below threshold limit, no need to file ITR
A bank has deducted TDS from my NRI son’s account. He has no taxable income in India. If he doesn’t file ITR to claim refund, will it create problems later?
– Bhaskar Patel

Individuals in India are not required to file income-tax return if the total income earned during the year does not exceed the basic exemption limit. However, if tax gets deducted at source, refund can be claimed by filing return of income. Where total income is below threshold limit, filing of ITR is optional. If your son does not wish to claim TDS refund, filing of ITR is optional.

Can I ask my employer to deduct the entire tax liability in March?
—Vijay Bhasin
An employer deducts tax at source (TDS) and not advance tax. An employer is required to deduct TDS at the time of payment of salary to employees. Since the employer is paying salary every month, he shall be liable to deduct TDS every month else he shall be liable to pay interest and penalty.

I want to sell a commercial property and invest the sum in Section 54EC bonds. Do I have to invest entire sale proceeds in it?
—Ashok Kumar
Section 54EC provides exemption of tax on amount of capital gain invested in the specified bonds. Thus, only the amount of capital gain, not the sales consideration, is to be invested in specified bonds.

Can I revise my Form 15H which I had submitted in my bank six months ago?
—Dolly Moga
No provisions have been specified in the I-T Act for revision or cancellation of Form 15H. You can pay advance tax on the estimated income within the due dates to avoid any adverse implications.

Is pension eligible for standard deduction?
—Gopal Awasti
The Finance Act, 2018 had amended Section 16 to provide that a taxpayer with income chargeable under head ‘salaries’ is allowed deduction of `40,000 or amount of salary, whichever is less, for computing taxable income. As pension income forms part of salary income, the taxpayer shall be entitled to claim a deduction of `40,000.

I gave `5 lakh to my sister. Will she have to pay any tax on the amount?
—Prakash Sharma
Gifts to relatives are not taxable in the hands of recipient. It is presumed that you have included this money in your income and paid the due taxes on it.

The writer is director, Nangia Advisors LLP. Send your queries to
fepersonalfinance@expressindia.com

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