I’m a dealer, what’s the threshold restrict of Income Tax for merchants? Do I’ve to file my ITR return compulsorily?
There isn’t any distinction so far as the brink restrict for cost of revenue tax is anxious whether or not you’re a salaried individual or a dealer. The solely distinction relies on age. For all of the individuals who’re or have accomplished 60 years of their age throughout the yr, the brink restrict is 3 lakhs whereas for these beneath this threshold it’s 2.50 lakhs every year. For those that have accomplished 80 years of age as on thirty first March, the essential exemption restrict is 5 lakhs.
As there is no such thing as a distinction between dealer and different classes tax payers, a dealer additionally should file his return of revenue if his whole mixture of all his revenue earlier than deduction of merchandise like PF, NSC PPF, LIP, reimbursement of housing mortgage, mediclaim premium and so on. is above the minimal threshold restrict talked about above. Due date for submitting of return is mostly thirty first July which has been prolonged until thirty first December 2021 this yr in case your accounts are usually not required to be audited.
Please word that if the full turnover of the dealer exceeds specified limits throughout the monetary yr, the dealer has to get his accounts audited from a Chartered Accountant and acquire an audit report earlier than one month of due date of submitting of the ITR. A dealer has to supply revenue as a sure specified share of his turnover. However, if his web revenue are decrease than the desired share of the turnover, he has to get his accounts audited even when his turnover is beneath the desired limits. Please word that this yr fifteenth February is the final date for submitting of an ITR for the dealer in case his accounts are required to be audited.
Balwant Jain is a tax and funding knowledgeable and could be reached on [email protected] and @jainbalwant on Twitter.
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