The hot topic these days is "Tax & Penalty on Cash deposited into Banks due to Demonitization". I have gone through several articles on this topic. The crux is that Sec 270A is applicable on this point which talks of penalty of 50% to 200% on "Under Reported" & "Mis-reported Income" respectively. There are views in case one deposits the cash , shows the same in his current year's (AY 2017-18) & pays applicable tax thereon, will not face much problem.
There are other reports that Income Tax Department has already started sending notices to such persons who have deposited cash in excess of the prescribed limits i.e. Rs 2.50 Lacs aggregating in one or more saving bank accounts. Some have views that IT Department may call for the details from assessees within Feb 2017 (when the AIR period expires on 31-0102017). Normal procedure is that one can file ITR upto July 2017 & pay applicable taxes by that date & thereafter only IT department should ask for details / assess under reporting or mis reporting cases.
21 November 2016
Thank you sir, but the question is whether IT Department can assess the Income & Impose the penalty without waiting for the last date for filing of ITR for FY 2016-17 ? most of the query by people are roaming around this point.
CAclubindia
