A. Always Compulsory for Companies and Partnership

It is compulsory for every company and partnership firm to File ITR (whether they have income or loss, is not relevant)

 

B. Compulsory if GTI>250000

It is also compulsory for all other assessees(like Individual or HUF)  if their GROSS total income exceeds basic exemption limit (which is normally 250000 but 300000 for Senior Citizen and 500000 for Super Senior Citizen)

(Note:-Gross total income is relevant here i,e, income without claiming any deductions under Chapter VI A-80C,80D etc and exemption under Section 10A,10B,10BA or Section 10(38) Profit on Sale of Shares as per Recognized Stock Exchange is exempt) (NEW AMENDMENT)

Effect of Amendment

Example 1

Suppose a person has Long term Capital gain Income of shares of 300000

He sold it through Recognized Stock Exchange and paid Securities Transaction Tax

Ths income is exempt under Section 10 (38)

Earlier

 

He was not supposed to file Return of Income as his GTI was 0 

Now

He has to file Return of Income because of above amendment

 

Example 2

Suppose a person has Long term Capital gain Income of shares of 100000

He sold it through Recognized Stock Exchange and paid Securities Transaction Tax

Ths income is exempt under Section 10 (38)

Earlier

 He was not supposed to file Return of Income as his GTI was 0 

Now

Even now, He is not supposed to  file Return of Income because of above amendment as his GTI even without taking exemption will be only 100000 (less than 250000_

 

 

 

C. Compulsory for Beneficial Owner/Beneficiaries/Signing Authority

It is also compulsory for ROR (Residents and Ordinarily Residents) if

    1.They are owner of asset located outside India(beneficial or otherwise)

       or

      Have Signing authority located outside India

   2. Beneficiary of any asset outside India

Note:

  • Asset includes any financial interest in company
  • This provison is applicable only to ROR (Residents and Ordinarily Residents)
  • Not applicable to Non Residents or RNOR (Residents but Not Ordinarily Residents)

 

Exception

If, beneficiary being individual, shall not be required to file Return, if income from asset if any is incredible in 1 above (person of beneficial owner/Signing Authority etc)

(Only individuals covered in exception)

 

Meaning of Beneficial Owner and Beneficiary

Beneficial owner means

a person who has provided consideration for the asset . This asset may be for his own benefit or benefit of some other person called beneficiary

 

Beneficiary means

a person  who derives benefit from the asset during the previous year but the consideration for such asset has not been  provided by that  person.

Note:- Such benefit may be direct or indirect, immediate or future

 

 

D. Compulsory for Representative Assessees

(They are persons who are required to file ITR on behalf of some Other Person

Examples of Representative Assessees: 

Parents/Guardian in case of Minor/ Liquidator in case of Company/ Trustee in case of Trust

 

 

  1. Income Tax
  2. Amendments Income Tax for May 2017 Exams
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Davneet Singh
Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 7 years. He provides courses for Mathematics and Science from Class 6 to 12. You can learn personally from here https://www.teachoo.com/premium/maths-and-science-classes/.
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