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Bank account

Vikash (G) (393 Points)

16 January 2018

What in case if bank account not disclosed itr. Will Ao will make addition for particular ay or he can go back and add up to for previous 6years.

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CA Rakesh Ishi (Working at Private Company) (8200 Points)
Replied 16 January 2018

It is always advisable to disclosed all bank accounts to the Clients

In case of Non disclosure, consequences can be seivour

IT officer if got suspcious or have any information related to other bank accounts which is not disclosed

he may order you to bring or make addition to the FY relevant to the AY

and can also bring re-opening of earlier AYs.

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Vikash (G) (393 Points)
Replied 16 January 2018

Under which section they can reopen for previous years

CA Rakesh Ishi (Working at Private Company) (8200 Points)
Replied 16 January 2018

Kindly read Section 147 Reassessment where assessment has been made u/s 143(3) or 147

Vikash (G) (393 Points)
Replied 17 January 2018

If the account was undisclosed but transaction was included for payment of tax than any consequences

(Guest)

It is always better to disclose all transactions (not only bank interest)and the closing balance in the balance sheet. For a proprietor, all his assets and liabilities, whether business related or not, should appear in BS.

However, if you can prove that all the amounts credited to a particular undisclosed bank account (for eg, rent/ interest etc)are taxed in all the years from start, the AO may not make addition.