02 June 2013
Above 5 lac income, tax rate is 20 %, but generally what happens if a person having income more than 5 lac, he has a bank F.D. on which the bank deducts tax at a rate of 10 % and generally it is not shown in the income tax return by any person, so it is also one type of fraud, so what should be done about this.
10 June 2013
It is clearly a case of income concealment and tax evasion. It is advisable to disclose such income in the income tax return as TDS is already deducted. So department have information of that income. In case if such case is selected under scrutiny assessment it will lead to penalty under income escapement u/s 271(1)(c) of the Income Tax Act.
CAclubindia
