31 July 2010
Sir, My client receive the I.T Notice regarding paying of income tax for last two years. Fact of the case: Client filed the return of last years with Business Income of 130000 and 140000 for two years as Trading Income but as per form 26AS of last two years, the client is the contractor for supplying Labour to the Electricity dept and elect. dept has deducted TDS against that and TDS for the last two years was Rs. 1.5 Lacs and Rs. 2.20 Lacs respectively and thus his income was 75 Lacs and 110 lacs respectively.
Can any respected sir guide my How to prepare this Scrutiny case for this client as the dept. has asked for an tax liability of 30% against these income.
31 July 2010
ok, then there is no problem .write a letter to ITO That the above income is related to your assesse's file. and you have not taken the credit.Then your ito will write a letter to the concerned department for confirmation. You will also mention in your letter that you have not received any payment at all.
31 July 2010
Sir, I think there is a confusion, I talked with the client & he confirm that Income belongs to him, he is actually a electricity contractor he did not show that income at his will.
31 July 2010
1.For F.Y 2007-08 business income shown was 130000 and he has not shown any income from govt. contract job. Under assessed receipts was 75 lacs from elec.dept. contract
2. For F.Y 2008-09 business income shown was 140000 and he has not shown any income from govt. contract job. Under assessed receipts was 110 lacs from elect.dept. contract
31 July 2010
for 2nd case it is better to revise the return by considering the above income. In that case no penalty will be levid on him.
for first year, first calculate the original income after considering the above income. then net tax payable after deducting tds and pay with interest. and prepare a fresh return for that.
Then write aletter to ito that we have submitted the return on animously. We are submitting a fresh return . Kindly consider the fresh return as original return.
YOU CAN CONSIDER SOME EXPENCES TO REDUSE THE TAX LIABILITY, LIKE LABOUR CHARGES, TRANPORTATION, CONVEYANCE, MATERIAL .... ETC.
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