No need to file ITR if annual income within exemption limit even if payment is in dollars
> I do freelance online design work with a Peru-based company. It pays me in dollars (around Rs 2 lakh a year) directly into my bank account. I do not have any other income. Do I still have to file income tax returns?
– Saileja Madan
A person is required to file income tax return (ITR) in a particular financial year only if her income exceeds Rs 2.5 lakh. Hence, if your total income in FY 18-19 does not exceed Rs 2.5 lakh, you need not file ITR. If your age is 60 years or above this exemption limit is Rs 3 lakh and if your age is 80 years or above then it is Rs 5 lakh. If the total income does not exceed these amounts respectively, then you do not need to file income tax returns.
> I am investing in ELSS funds for the past four years. I plan to redeem those portfolios for which lock-in period is over. How should I show the LTCG in my I-T return and get exemption?
—Kannan V
You should report the LTCG in Schedule CG of the Income Tax Return. As per Finance Act 2018, exemption for LTCG on equity-oriented mutual funds (including ELSS) has been withdrawn, therefore no exemption will be available in respect of LTCG from ELSS on or after April 1, 2018 and such LTCG in excess of Rs 1 lakh will be taxed at 10%. The cost of acquisition for the investment made before February 1, 2018, will be the higher of the actual cost at the time of investment or its market value as on January 31, 2018. However, if the price at which the investments are sold is less than the market value of such investments as on January 31, 2018, then the higher of the cost and the sale value will be considered for calculating gain.
> I own an ancestral property and receive rental income and pay tax. Can I transfer the property to my wife through family settlement deed?
—Ankush Sood
Yes, you can transfer this property to your wife through family settlement deed. Ordinarily, you would still be considered the deemed owner of the property so transferred and the income from such property would be clubbed in your hands except when such settlement deed is in connection with an agreement to live apart wherein she would be considered the owner and the income from such property would be taxed in her hands.
