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Akash, who is 32 years old, has long-term capit...

Akash, who is 32 years old, has long-term capital gains of Rs25,000 which is exempt under section...

Akash, who is 32 years old, has long-term capital gains of Rs25,000 which is exempt under section 10(38) and deduction of Rs80,000 under section 80C. He has to file a return of income for A.Y. 2018-19, only if his total income exceeds how much amount?

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Kanishka Sep. 12, 2018

Hello All,

Aafreen called me up yesterday.

Aafreen used calling facility at website to call, which is very nice. She asked me to answer back this question on webpage.

Thank you Aafreen, for calling.

And now please read my answer below.

Provisions applicable to Return of Income are mentioned under section 139 of the Income tax Act.

Section 139 specifies that a person should file return if it has earned an income which is more than the non-taxable maximum amount.

Income is defined under section 2(24) of the Income tax Act. And non-taxable maximum amount is Rs2,50,000 for assessment year 2018-19.

Section 2(24) basically has 31 points. All these 31 points mention different types of income.

Aafreen, you don't have to mug up these 31 points. The only point that you should remember is that - all these points demand to add taxable income only.

Simply said, they point to exclude exempt income.

Now you see, Rs25,000 is an exempt income. So, you shouldn't add it to Akash's income to determine his tax filing.

Akash can claim Rs80,000 as section 80C deduction. Section 80C deduction is claimed after assessee has added his income from all the sources.

Non-taxable maximum amount is Rs2,50,000 for assessment year 2018-19.

Simply said, if Akash earns more than Rs2,50,000 then he would have to file his returns.

So, let us calculate Akash's non-taxable income. In order to find out when should Akash file his return of income, let us calculate his income backwards.


  • under section 139 of Income tax Act.



Akash, who is 32 years old, has long-term capital gains of Rs25,000 which is exempt under section 10(38) and deduction of Rs80,000 under section 80C. He has to file a return of income for A.Y. 2018-19, only if his total income exceeds how much amount?

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