In each of the following independent situations, you are required to examine whether these persons are mandatorily required to file income tax return for A.Y. 2024-25 : (a) Ashwani, aged 55 years, has only Salary Income

CS Executive · Tax Laws and Practice · PYQS · December 2024
In each of the following independent situations, you are required to examine whether these persons are mandatorily required to file income tax return for A.Y. 2024-25 : (a) Ashwani, aged 55 years, has only Salary Income of ₹ 2,40,000 during the financial year 2023-24. Further, he withdraws cash of ₹ 35,00,000 from his saving account in Axis Bank out of his accumulated income of earlier years. Ashwani has not filed his income tax return in any of preceding three financial year.

Answer & Explanation:

Answer 4A(i) (a) If an individual has aggregate TDS and TCS credit of ₹ 25,000 or more during the previous year, he would be required to file a return of income, even if his total income does not exceed the basic exemption limit. In this case, TDS of ₹ 30,000 i.e., @ 2% on ₹ 15 lakhs, would have been deducted by Axis Bank under section 194N on cash withdrawal exceeding ₹ 20 lakhs by Ashwani during the P.Y. 2023-24 (due to non-filing of return in all the three preceding financial years) Hence, Ashwani is mandatory required to file his return of income for A.Y. 2024-25 on or before the due date under section 139(1) of the Income Tax Act, 1961.

Topics: Income Tax

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