• Is it mandatory for a director of a private limited company to file ITR

Hello,

Is it mandatory for a director of a private limited company to file personal income tax return even if his income is below basic exemption limit? Also, if director is a managing director of this company will it affect the answer ?

Thank you.
Asked 12 days ago in Income Tax

No, it is not mandatory for director to file ITR but is is advisable to file as it gives better credibility to the Co.

Ruchi Goel Anchal
CA, Gurgaon
467 Answers
5 Consultations

5.0 on 5.0

Dear Sir,

 

It is not mandatory to file but advisable to file the same.

Payal Chhajed
CA, Mumbai
5131 Answers
185 Consultations

5.0 on 5.0

Hi

No, ITR filing is not mandatory in such case where you are director of an Indian company and having income less than 2.5 lacs.

Lakshita Bhandari
CA, Mumbai
5557 Answers
649 Consultations

5.0 on 5.0

If the taxable income is below the maximum exemption limit then he is not liable to file ITR but if he fulfills one or more conditions mentioned below then he is obligated to file ITR though his total income is below maximum exemption limit.

a) Deposit of amount or aggregates of amount exceeding Rs 1 crore in one or more current accounts;

b) Incurred expenditure of an amount or aggregate of amount exceeding Rs. 2 lakhs for travel to a foreign country for yourself or any other person;

c) Incurred expenditure of amount or aggregate of amount exceeding Rs. 1 lakh on consumption of electricity.

 

Also if his residential status is ROR during previous year and he at anytime during the previous year,-

a) holds (as a beneficial owner or otherwise) any asset (including financial interest in any entity) located outside India or has signing authority in any account located outside India, or

b) is a beneficiary in any asset (including any financial interest in any entity) located outside India.

 

Vivek Kumar Arora
CA, Delhi
4222 Answers
399 Consultations

5.0 on 5.0

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA