29 March 2016
Respected Members, My uncle have never filed return of income tax till date .He is a small businessman who regularly keep his saving in bank FD.& now his FDR amount has became about 3,00,000 & another 4,00,000 All in his name.He is doing his business from last 15 years & now he is concerned will he be charged Tax & what will be its consequences & whether should he file return Then will so much FD amount create trouble for him.In hope for prompt reply.Thank is advance.
29 March 2016
There is nothing to worry if your uncle invest their savings in FDs while doing business for the last 15 Years. but you have to be very clear that FD interest is taxable accrued or receipt basic. Business income & interest both are combined while calculation of income tax. So your uncle needs to calculate business income & interest income and if liability appears then they need to pay tax file their income tax return for that particular period of year.
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