29 February 2016
Dear Sir, An assesse had received notice from IT Deptt for making compliance. In this case assesse had received gift of Rs.3.00 Lac from her husband. In the information sheet there is option Investment/ Expenditure is out of gifts/loans from others.
Please suggest can I select this option or not. Please help to sort out the matter.
29 February 2016
Dear Sir, There is another option that Investment/Expenditure out of income which is exempt which I think was appropriate but I have given the option Investment/Expenditure out of gifts/loans from others.
Please tell whether there would be any problem from IT department. Please tell at the earliest.
19 July 2024
If you have mistakenly chosen the option "Investment/Expenditure out of gifts/loans from others" instead of "Investment/Expenditure out of income which is exempt" while filing your income tax return, it's important to rectify this error. Here are the steps you should take:
1. **Review the Details**: Check your income tax return carefully to confirm that you have indeed selected the incorrect option.
2. **Rectification**: If you have filed the return electronically, you can rectify this mistake by filing a revised return using the Income Tax Department's online portal within the specified time limit. A revised return can only be filed if the original return was filed within the due date of filing.
3. **Correct Option**: In the revised return, select the correct option "Investment/Expenditure out of income which is exempt" to accurately reflect the nature of the investment or expenditure.
4. **Consequences**: Choosing an incorrect option may lead to scrutiny from the Income Tax Department, especially if there are inconsistencies in your tax return. However, promptly filing a revised return with the correct details mitigates any potential issues.
5. **Consultation**: If you are unsure about the process or have concerns about potential consequences, it's advisable to consult a tax professional or a Chartered Accountant who can guide you through the revision process and ensure compliance with tax regulations.
By taking prompt action to file a revised return with the correct option, you can rectify the mistake and avoid any unnecessary complications with the Income Tax Department.
CAclubindia
