Please oblige advising the documents and/or formalities required to file first time Income Tax Return for an individual earning below taxable limit for 10 years.

Biswajit Das

The income tax return has to be mandatorily filed electronically (except only for super senior citizens manual form filing is allowed in case of file ITR-1 and ITR-4) using online/offline tax filing utility available on Income Tax Portal (https://www.incometax.gov.in/iec/foportal). As a first step, you would be required to create an account on the income tax e-filing portal. You would be required to provide your personal details viz. PAN, Aadhaar number, date of birth, address, email ID, registered mobile number, etc. for registering yourself on the online portal.

Once the account is created, you can file the income tax return using the relevant Income tax return form depending on the sources of income / residential status during the Financial Year (FY).

Please note that no supporting documents are required to be uploaded while filing your tax return. Kindly note that in case your Income tax return is picked-up for audit / assessment by the Tax Authorities, they may seek relevant supporting documents to verify the income offered and deductions claimed, if any. Hence, it is advisable to maintain the supporting documentary evidence on record.

I am a senior citizen. So far, I have been filing ITR-1, as I had only ‘Income from Other Sources’ (i.e. tuition income, interest from FD & SB, and dividend from Shares & MF Units), with ’Total Income’ below taxable limit and with NIL Income Tax. I have also received Intimation u/s 139(1) for all these years. However, during AY 2021-22 (FY 2020-21), additionally I earned LTCG of 30,000 from sale of Equity Shares (all bought before 31.01.2018) and my ‘Total Income’ is still below 3 lakh. Now, please clarify the following: Can I continue filing ITR-1, since LTCG of 30,000 is fully exempt from tax as per Section 112A? Or do I need to file ITR-2? If yes, apart from Schedule 112A, which are the other schedules/serial numbers/columns to be filled for showing LTCG of 30,000, so that it is not included in taxable ‘Total Income’?

Revathy. K

Form ITR-1 is applicable for individuals qualifying as Resident and Ordinarily Resident having total income up to ₹50 lakh under the following heads:

a) Income from Salary/ Pension; or

b) Income from One House Property; or

c) Interest income and/ or family pension taxable under Other Sources

d) Agricultural income up to ₹5,000

Since during the Financial Year (FY) 2020-21, you have earned capital gains, you would be required to file income tax return in Form ITR-2 (on an understanding that you do not have income under the head profits and gains of business and profession).

For capital gains, you would be required to fill Schedule 112A with the requisite details and the same would automatically flow to the respective columns of the income tax return. You would not be required to fill any columns separately.

Please be advised that every individual has to file the return of income if his total income (including income of any other person in respect of which he is assessable) exceeds the maximum amount which is not chargeable to tax i.e. exceeds the exemption limit, currently ₹3 lakh for resident senior citizens. Further, an individual having income below the exemption limit, may still be required to file the return of income if such taxpayer:

a) holds, as a beneficial owner or otherwise, any asset (including any financial interest in any entity) located outside India

b) has signing authority in any account located outside India

c) is a beneficiary of any asset (including any financial interest in any entity) located outside India.

d) has deposited an amount (or aggregate of amount) exceeding ₹1 crore in one or more current accounts maintained with a banking company or a co-operative bank. .

e) has incurred more than ₹2 lakh on travel to a foreign country, either for himself or for any other person. .

f) has incurred an expenditure exceeding ₹1 lakh on electricity consumption.

If the above requirement is not fulfilled, you are not mandatorily required to file tax return for such financial year.

The writer is a practising chartered accountant

Send your queries to taxtalk@thehindu.co.in

comment COMMENT NOW