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Can presumptive income scheme case be subjected to scrutiny

Vivek Agrawal (GST Practitioner) (181 Points)

04 April 2018

a person or firm is filling tax return under presumtive income scheme and showing the desired profit. Can his case be subjected to scrutiny u/s 143 ?

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2 Replies

CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 04 April 2018

Generally it is not scrutinized if you declared incone on all your receipts, but if you have some undisclosed receipts then notice for scrutiny may be raised.

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Saifullah Khalid (Autodidact/Curious ) (633 Points)
Replied 04 April 2018

If IT department gets some information regarding some BIG transaction (Based on AIR/SFT or any other source) then the department can issue notice to demand explainantion about the source of funds for such transaction ... so always keep tight records of your receipts and every expense/investment (of any nature) should be justifiable out of gross receipts of bussiness .
Any expense/investment/deposits/receipt having no nexus with bussiness receipts(declared) may qualify for sec 68/69 resulting in penalty etc ....