Sec 271f

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 November 2013 Dear Sir,
I would like know that Income Tax Department have served a letter u/s 271F, failure to submit return of income.
Actually the case is, if anybody had submitted the Return for A.Y.2009-2010 with NIL Return because his income for that year was not Taxable & so, he had not submitted the Return for the A.Y. 2010-2011 & A.Y.2011-2012 respectively because his income is not taxable.
In this type of matter can you advice me what will be the appropriate reply of this.

Pramod Kumar Sinha

Pramod Kumar Sinha (Expert)
Follow

20 November 2013 If a person required to file return u/s 139(1) fails to file the return before the end of the relevant assessment year, a penalty of Rs. 5,000 shall be leviable u/s 271F.
Here, section 139(1) is important. You should to know whether any person required to file his return or not.
In your case annual income or taxable income is below the basic exemption limit, hence, filing of return is not compulsory.
Any person, who desires, can file its return of income even if its income is below the maximum amount not chargeable to tax- CIT vs. Ranchhoddas Karsondas (1959) 36 ITR 569 (SC).

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

20 November 2013 Dear Neeraj,

1. Do a proper computation of total income before claiming Chapter VI-A deand check if there was any taxability or not.

2. Second even if the income is less than the exempted limit, he might still be required to file the return if first proviso to Section 139(1) ie:

Provided that a person referred to in clause (b), who is not required to furnish a return under this sub-section and residing in such area as may be specified by the Board in this behalf by notification in the Official Gazette, and who during the previous year incurs an expenditure of fifty thousand rupees or more towards consumption of electricity or] at any time during the previous year fulfils any one of the following conditions, namely :—

(i) is in occupation of an immovable property exceeding a specified floor area, whether by way of ownership, tenancy or otherwise, as may be specified by the Board in this behalf; or

(ii) is the owner or the lessee of a motor vehicle other than a two- wheeled motor vehicle, whether having any detachable side car having extra wheel attached to such two-wheeled motor vehicle or not; or

(iii) ***

(iv) has incurred expenditure for himself or any other person on travel to any foreign country; or

(v) is the holder of a credit card, not being an "add-on" card, issued by any bank or institution; or

(vi) is a member of a club where entrance fee charged is twenty-five thousand rupees or more,

shall furnish a return, of his income during any previous year ending before the 1st day of April, 2005, on or before the due date in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed"

If the assessee doesn't fall in any of the above, the simply reply to the 271F notice stating that you don't fall under 139(1) conditions and therefor 271F notice may be recalled or closed. Please attach an explanation in the letter giving details of your income and non-applicability of the proviso.

Regards

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

22 November 2013 Respected Kaushik Sir,
I would like know that, if any assessee having engaged in Work Contract had file his Return of Income for A.Y. 2011-2012, u/s 44AD and shown his net profit above 8%, and Gross Receipt is Rs. 1675000/- is it mandatory to maintain Books of Accounts?

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

23 November 2013 no...once you come under the ambit of 44AD, books of accounts are not required.

Querist : Anonymous

Querist : Anonymous (Querist)

23 November 2013 But Sir,
According to Section 44AA, anybody whose turnover exceeds Rs.10 Lakhs then they have to maintain Books of Accounts. In this case what is you suggest.

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

23 November 2013 once covered under 44AD, 44AA shall apply only and only if you are claiming less than 8% profit.

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

23 November 2013 please refer 44AD(5):

"(5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB."

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

24 November 2013 Dear Sir,
I would like to know that if any assesse is engaged in retail business of Motor Cycle and while selling the motor cycle he used to collect the amount in cash which is more than Rs. 50000/- or he suppose to collect the said amount in cheque, is it any violation of IT Act while dealing in cash.Kindly suggest me what is the procedure in case of cash sale.

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

25 November 2013 there is no restriction on cash sales. the appropriate thing to do is to maintain a proper cash sales register and all the taxes should be charged. Cash income is never a problem as long as it is properly disclosed.

Querist : Anonymous

Querist : Anonymous (Querist)

03 December 2013 Dear Kaushik Sir,
I would eager to know that, in a case of scrutiny one Assesse, which is a Civil Engineer in Govt. concern,the disputed matter is one of his wife's KVP investment amount has been matured in his own Account, which ITO has added as his income,The question is that his wife is a housewife and the KVP has been received from various relatives as a gift.Is there any favourable circular or case study similar to this case, which will help me while appealing to CIT.
Thanking you.

Querist : Anonymous

Querist : Anonymous (Querist)

04 December 2013 Respected Kaushik Sir,
I would like to know that if any assesse has its ST-2 Registration number from 01/04/2004 (without PAN Base) but due to some interactiveness of his business he had not submitted any return, but now he wants to continue the business, can he apply for a fresh ST-2 registration with same trade name & License.
what is the convenient way to handle the aforesaid matter, without falling or using the VSES Scheme.(avoiding VSES Scheme)

Upgrade to CAclubindia Pro. Subscribe Now!

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

11 December 2013 you need to prove the independent source of income in wife's favor. else the AO is within his power to club the income.

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

11 December 2013 with regards to VCES, even if you are able to take a new service tax registration number, it won't extinguish your previous liabilities. So it is advisable to take helpful provisions of VCES to settle the matter for once and for all..

Querist : Anonymous

Querist : Anonymous (Querist)

12 December 2013 Dear Kaushik Sir,
kindly suggest me, if a Assesse resident in Gram Panchayat Area, and sold a ancestor land whose sale value is Rs.100 Lakh, can in Gram Panchayat the Capital Gains is admissible or not..because the Return file by the Assesse without calculating Capital Gain. If Capital gain is mandatory then how to calculate or use the cost index because the land was purchased in about 40 years ago in very minimum price.If Cost index is used then the Assessee has to give huge tax can u suggest me how to safe TAX in this case.

Upgrade to CAclubindia Pro. Subscribe Now!

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

12 December 2013 it is a taxable transaction unless the land was agriculture land.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

13 December 2013 Respected Sir,
I like to know that one Assessee who is engaged in a trade of Motor & Pumps of ABC Company and he is the authorized dealer of the said company. He use to sale and supply the spares as well as the Motors and Pumps to other companies and in Govt. Concern, while purchasing the Motors & Pumps the ABC Company use to charge Excise Duty, CST Etc. But now the Assessee want to register under Excise, so kindly explain me what is the procedure to register in Excise and how to deal with that and procedure of Excise return.

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

13 December 2013 for procedure for registration: http://wirc-icai.org/%28S%281hatnybmbnqedj4514nrwjil%29%29/ezine-new/VolumeIII/Article%20on%20Central%20Excise%20Registration.pdf

For all the compliances and returns refer:

http://www.dateyvs.com/tax/central-excise/procedures-in-central-excise-and-returns-to-be-filed/

Querist : Anonymous

Querist : Anonymous (Querist)

13 December 2013 Sir,
Sorry to say that the link given by you is not available right now, so I will be thankful if you kindly suggest me that can a dealer register under Central Excise as First Stage Dealer or Second Stage Dealer, and if he purchase a goods without paying Excise duty, can he charge to his customers Excise duty,vice-verse. And can he enjoy the benefits of input.

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2013 Respected Kaushik Sir,
If a House Building is in the name of Husband and wife(Co-Owned), and the House Building Loan is in the name of Husband only, who shall enjoy the benefit of u/s 24 (b)interest on borrowed capital, both of them or single person. As well as the income from the said building can be divided into both of them or single.