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Letter from ito

Vivek (Director) (51 Points)

29 March 2012

Hi,

I received a letter from Income Tax Officer (ITO) on name of my father. In the letter they have mentioned that there was a Mutual Fund purchase/surrender of amount Rs 2,26,000/- in year 2004 and they have asked details for this transaction.

I spoke to my CA and told him that my father expired 2 years back and I have no details about this transaction. The letter came to me by 15th March,2012 & they expected result by 31st March,2012.

My CA spoke to the ITO, but he said he will reopen the case if i dont furnsih details by 31st March, 2012. I got the details of the above (Mutual Fund) transaction & sent it to my CA on 26th March, 2012 but she told me that ITO refused to take it and said he will reopen this case and then we can send these details.

Kindly let me know what should i do and is it something really very serious?

Thanks

Vivek

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3 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 29 March 2012

What is the date on the letter? Whether the letter bares any section on it ie. whether it is a notice under any section?

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praveen (Chartered Accountant) (6971 Points)
Replied 29 March 2012

You please verify the details of the transaction. You say that there is sale of MF's - check whether there was any short term capital gain? if Yes, has he discharged tax on it.

Similarly please let us know whether he had too much of investments in his name. i mean to say more than 10.00 Lacs or so.

If the tax is paid then there is nothing to bother from your point of view. If not then you might have to pay up the tax, & interest.

Vivek (Director) (51 Points)
Replied 29 March 2012

Hi Praveen,

The mutual fund was purchased in 2002 (Rs 2 Lakhs ) and redeemed in 2004 (Rs 2,26,000). This all was taken care by my dad and I have no idea about whether the tax was paid. Since he has expired, so I don't know any further details about it?

Secondly, he never had lot of Investments (Not amounting atleast Rs 10 Lakhs)

Thanks

Vivek