Causes creating issue of income tax scrutinuy
This query is : Resolved
22 September 2016
What is the full form of " CASA ". I would like to know what precautions should be taken while finalizing the balance sheet as at 31st March so that there should not be any chance left for the causes creating issue of income tax scrutiny ? What are those ratios which are to be maintained while finalizing the balance sheet as at 31st March ? Scrutiny through CPS Bangalore and the scrutiny through the local income tax department both are different and how we will come to know the difference ? Whether both the notices bear some particular sign indicating the origin of the notice ?
23 September 2016
It's CASS- Computer Assisted Scrutiny Selection. There are two types of scrutiny, manual scrutiny and computerized scrutiny(CASS). There are some of the filters and information available with department from various sources like CIB(Cash Deposits), AIR(large/hige value transactions, stock dealings etc.) due to which the case get selected for scrutiny. Every year CBDT releases the guidelines for scrutiny, you can have a look at that. Further, from A/Y 2014-15 there is a type of limited scrutiny. In the notice u/s 143(2) it is specifically mentioned the area which needs to be checked like purchase of property, tax credit mismatch etc.
CPC Bangalore only check the arithmetical accuracy and the whole thing is fully computerized. Intimation u/s 143(1) is final until and unless your case gets opened under scrutiny by your jurisdictional assessing officer.
As regards to the precautions, you need to be cautious while filing the return like make sure you have shown each and every income accrued to you during the relevant assessment year including agriculture as well as exempt income and have claimed the legitimate expenses. If the GP /NP ratio has fallen to quite a good extent make sure you have credible reasons for the same along with documentary evidences. Make sure there is no tax credit mismatch and the claim of deductions under Chapter VIA of the Act is also legitimate.
PS: Scrutiny is just a regular assessment and there is no need of any fear if your books of accounts are well maintained and you have not concealed anything/ furnished inaccurate particulars.
CPC Bangalore only check the arithmetical accuracy and the whole thing is fully computerized. Intimation u/s 143(1) is final until and unless your case gets opened under scrutiny by your jurisdictional assessing officer.
As regards to the precautions, you need to be cautious while filing the return like make sure you have shown each and every income accrued to you during the relevant assessment year including agriculture as well as exempt income and have claimed the legitimate expenses. If the GP /NP ratio has fallen to quite a good extent make sure you have credible reasons for the same along with documentary evidences. Make sure there is no tax credit mismatch and the claim of deductions under Chapter VIA of the Act is also legitimate.
PS: Scrutiny is just a regular assessment and there is no need of any fear if your books of accounts are well maintained and you have not concealed anything/ furnished inaccurate particulars.
23 September 2016
TKS & RGDS Lot of knowledge I have got from you. The way you have replied I dont have words to thank u. Actually
There is a private limited company and the issue is related with the Ay 2016-17 [ Year Ending March 16 Fy 15-16 ]. Data of which are as follows as on 31st March 2016: 1) Export Sales Rs. 23.59 Crores 2) Cash Balance as on 31st March 2016 is Rs . 31.28 Lacs Some one has told me that heavy cash balance in balance sheet of 31st March 2016 might be the one of the causes of the scrutiny. Please let me know how much should be maintained as at 31st March 2016.
There is a private limited company and the issue is related with the Ay 2016-17 [ Year Ending March 16 Fy 15-16 ]. Data of which are as follows as on 31st March 2016: 1) Export Sales Rs. 23.59 Crores 2) Cash Balance as on 31st March 2016 is Rs . 31.28 Lacs Some one has told me that heavy cash balance in balance sheet of 31st March 2016 might be the one of the causes of the scrutiny. Please let me know how much should be maintained as at 31st March 2016.
23 September 2016
High Amount of Cash in hand is beyond doubt one of the reason but looking at the facts and the figures of sale the same seems to be justified. No need of any window dressing of balance sheet only to avoid scrutiny, you never know what will happen. If the cash is justified let it be. And Thanks for your kind words :)
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