Hi friends,
Click here before proceeding - http://returnfiles.blogspot.in/2016/03/i-am-tax-advisor-provide-online.html
- Let me first introduce myself -- I am a Tax advisor & provide online correspondence services since 2013.
- My qualification is C.A.
- I offer tax return services all over India, via completely online communication.
- I.T. Dept. serves notices to defaulters in tax return filing for various causes. Below is detailed description of factors which attract an I.T. Dept.'s notice :
WHY YOU GET I.T. DEPT.'S NOTICE
Return not filed or delayed:
[ Section 148, Income-Tax Act, 1961 ]
- Your employer deducted tax from you salary.
- However, you did not file the return. In such a case, the tax department will send a notice asking you to file the return.
- The notice has to be responded to within the given time. Otherwise, you may be penalised.
- Such a notice can be sent for any of the previous six assessment years.
- In case of delayed filing, the department can levy a penalty of Rs 5,000 a year.
Mismatch in tax credit:
[ Section 143 (1), Income-Tax Act, 1961 ]
- Tax deducted at source, or TDS, figure in your Form 16 may be different from the actual tax credit mentioned in Form 26 AS, a document issued by the income tax department that has all your tax-related information such as tax deducted, refund, etc, against your permanent account number (PAN).
- In case there is mismatch between the two, the department goes by the figure in Form 26 AS.
- The mismatch could be because either the employer has not deposited the tax deducted from your salary with the department or has credited it in someone else's account.
Inadvertent/wilful non-disclosure of income:
[ Section 271 (1), Income-Tax Act, 1961 ]
- What if you made capital gains by selling stocks/bonds, earned interest on fixed deposits or had rental income, but did not report these in your return?
- Improved tracking by the income tax department means hiding these is difficult and may lead to serious repercussions in the form of penalty and prosecution.
- For instance, in case of concealment of income or non-payment of tax, the penalty can be 100-300% of the amount due.
- So if the tax due is Rs 20,000, you may have to pay a fine of up to Rs 60,000, besides the due amount.
- To invest in equities, you need a demat account, and for that you need a PAN. So, the tax department gets all the information. You also pay STT (securities transaction tax) and so again the government has all the information regarding share purchases.
- Even when you book capital gains, it is a banking transaction, and you face the risk of coming under the tax department's scrutiny.
- You run the risk even otherwise. For instance, if there is an inquiry against your (stock) broker, you can also get a notice.
Notices for high-value transactions:
[ Section 285BA, Income-Tax Act, 1961 ]
- Any high-value transaction (with or without quoting PAN) that you thought you can get away with, can invite a notice from the income tax department.
- The tax department closely scrutinizes -
* individuals with bank cash deposits worth Rs 10 lakh or more in a year,
* credit card purchases of Rs 2 lakh or more,
* mutual fund investments of Rs 2 lakh or more,
* purchase of bonds and debentures worth Rs 5 lakh or more in a year.
- Besides, sale or purchase of property worth Rs 30 lakh or more also attracts attention of the tax department.
- Under the law, details of such transactions have be furnished by the entity with which you are doing the transaction.
- For example, if you have Rs 10 lakh or more in the savings account of a bank, the respective bank has to file an annual information return with the department.
- Such tight monitoring means the taxman may send you a notice asking you to file a return. Also, if there is a sharp discrepancy between your earnings and spendings, the tax department may ask you to explain your sources of income.
Investment in the name of spouse:
[ Section 64 (1), Income-Tax Act, 1961 ]
- Any income from investment made or asset purchased in the name of close relatives (spouse, minor child or daughter-in-law) is clubbed with the income of the person making the investment and taxed accordingly.
- This applies to all types of investments such as shares, fixed deposits, land, building, post office savings and mutual funds.
- Further, income from assets transferred directly or indirectly other than for adequate consideration to a person or association of persons, who may benefit the individual's spouse or son's wife are also clubbed with the transferor's earnings.
- Not responding to the notice could cost you a lot of time, money and peace of mind.
- In some cases, it could also lead to imprisonment.
Visit http://returnfiles.blogspot.in/2016/03/i-am-tax-advisor-provide-online.html for tax services info.
Click here before proceeding - http://returnfiles.blogspot.in/2016/03/i-am-tax-advisor-provide-online.html
- Let me first introduce myself -- I am a Tax advisor & provide online correspondence services since 2013.
- My qualification is C.A.
- I offer tax return services all over India, via completely online communication.
- I.T. Dept. serves notices to defaulters in tax return filing for various causes. Below is detailed description of factors which attract an I.T. Dept.'s notice :
WHY YOU GET I.T. DEPT.'S NOTICE
Return not filed or delayed:
[ Section 148, Income-Tax Act, 1961 ]
- Your employer deducted tax from you salary.
- However, you did not file the return. In such a case, the tax department will send a notice asking you to file the return.
- The notice has to be responded to within the given time. Otherwise, you may be penalised.
- Such a notice can be sent for any of the previous six assessment years.
- In case of delayed filing, the department can levy a penalty of Rs 5,000 a year.
Mismatch in tax credit:
[ Section 143 (1), Income-Tax Act, 1961 ]
- Tax deducted at source, or TDS, figure in your Form 16 may be different from the actual tax credit mentioned in Form 26 AS, a document issued by the income tax department that has all your tax-related information such as tax deducted, refund, etc, against your permanent account number (PAN).
- In case there is mismatch between the two, the department goes by the figure in Form 26 AS.
- The mismatch could be because either the employer has not deposited the tax deducted from your salary with the department or has credited it in someone else's account.
Inadvertent/wilful non-disclosure of income:
[ Section 271 (1), Income-Tax Act, 1961 ]
- What if you made capital gains by selling stocks/bonds, earned interest on fixed deposits or had rental income, but did not report these in your return?
- Improved tracking by the income tax department means hiding these is difficult and may lead to serious repercussions in the form of penalty and prosecution.
- For instance, in case of concealment of income or non-payment of tax, the penalty can be 100-300% of the amount due.
- So if the tax due is Rs 20,000, you may have to pay a fine of up to Rs 60,000, besides the due amount.
- To invest in equities, you need a demat account, and for that you need a PAN. So, the tax department gets all the information. You also pay STT (securities transaction tax) and so again the government has all the information regarding share purchases.
- Even when you book capital gains, it is a banking transaction, and you face the risk of coming under the tax department's scrutiny.
- You run the risk even otherwise. For instance, if there is an inquiry against your (stock) broker, you can also get a notice.
Notices for high-value transactions:
[ Section 285BA, Income-Tax Act, 1961 ]
- Any high-value transaction (with or without quoting PAN) that you thought you can get away with, can invite a notice from the income tax department.
- The tax department closely scrutinizes -
* individuals with bank cash deposits worth Rs 10 lakh or more in a year,
* credit card purchases of Rs 2 lakh or more,
* mutual fund investments of Rs 2 lakh or more,
* purchase of bonds and debentures worth Rs 5 lakh or more in a year.
- Besides, sale or purchase of property worth Rs 30 lakh or more also attracts attention of the tax department.
- Under the law, details of such transactions have be furnished by the entity with which you are doing the transaction.
- For example, if you have Rs 10 lakh or more in the savings account of a bank, the respective bank has to file an annual information return with the department.
- Such tight monitoring means the taxman may send you a notice asking you to file a return. Also, if there is a sharp discrepancy between your earnings and spendings, the tax department may ask you to explain your sources of income.
Investment in the name of spouse:
[ Section 64 (1), Income-Tax Act, 1961 ]
- Any income from investment made or asset purchased in the name of close relatives (spouse, minor child or daughter-in-law) is clubbed with the income of the person making the investment and taxed accordingly.
- This applies to all types of investments such as shares, fixed deposits, land, building, post office savings and mutual funds.
- Further, income from assets transferred directly or indirectly other than for adequate consideration to a person or association of persons, who may benefit the individual's spouse or son's wife are also clubbed with the transferor's earnings.
- Not responding to the notice could cost you a lot of time, money and peace of mind.
- In some cases, it could also lead to imprisonment.
Visit http://returnfiles.blogspot.in/2016/03/i-am-tax-advisor-provide-online.html for tax services info.
