The exemption limit for assessment year 2020-21 for an person is Rs 2.5 lakh.
I have a property in the name of my wife and I. My wife receives the rent in her account as she is co-borrower and rental agreement is completed in her name. I invest in debt and equity mutual funds and shares in my wife’s name. As her total revenue is under Rs 2.5 lakh, ought to she file revenue tax returns? —Anand Kumpatla Individual taxpayers are essential to file tax returns compulsorily, just before the due date, if their gross total revenue of the monetary year, as computed in accordance with the provisions of the law, surpasses the simple exemption limit. The exemption limit for assessment year 2020-21 for an person is Rs 2.5 lakh.
The gross total revenue is computed by adding up revenue below all heads with no accounting for investment-linked deductions below chapter VI A (i.e. section 80C to 80U) or deduction below section 54/54F/54EC, and so forth. Hence, if your wife’s gross total revenue does not exceed the simple exemption limit, it shall not be mandatory for her to file an revenue tax return. However, one particular may possibly file a return of revenue on a voluntary basis also.
My daughter was an NRI in FY2018-19 as effectively as FY19-20. She had some revenue in India by way of dividend/interest and capital gains from sale of shares / mutual fund units, total of which was significantly less than Rs 1.5 lakh through every single of these two years. She was a student abroad in FY 18-19. She was employed component of 19-20 and drew revenue by way of salary. Is she essential to file ITR in India for AY 19-20 and AY20-21? Does she have to declare her foreign earned revenue in her ITR for AY 2020-21? She has paid taxes in foreign nation with which India does not have DTAA. —Praveen Godbole Non-resident Indians (NRIs) are liable to spend tax in India on revenue that is received or is deemed to be received in India through the preceding year or revenue that has accrued or arisen to such NRI in India through the preceding year. Income earned abroad by NRI is not taxed in India and the similar shall be taxed abroad. Further, the obligation to furnish ITR arises exactly where the total revenue (earned in India) exceeds maximum quantity not chargeable to tax (Rs 2.5 lakh). Therefore, if your daughter was a non-resident for FY 2018-19 and 2019-20 and her total revenue, from capital gains and other sources, arising in India was under taxable limit, then she need to have not file ITR.
The writer is director, Nangia Andersen India. Send your queries to