A profit was not shown in the year in which it actually accrued. Assessment of that year return has been done. Now after 3 years the assessee wants to show this profit. Which provisions of the Income Tax Act should be referred to?
hireshire (n/a) (185 Points)
20 February 2010A profit was not shown in the year in which it actually accrued. Assessment of that year return has been done. Now after 3 years the assessee wants to show this profit. Which provisions of the Income Tax Act should be referred to?
Amir
(Learner)
(4016 Points)
Replied 21 February 2010
Dear Hireshire,
Good one brother..........
I am beleving that there are no 2 opinions regarding the year in which income is to be taxed or lets say the income was also received in the year in which it was accrued.....
Since 3 years has paased now u cannot revise the return...............
Ideally it CANNOT be taken as Income of current year...........
There are 4 options -
1) Reassessment u/s 147 or Raid - But then thats AOs prerogative
2) Law only prohibits the revision of return voluntarily after 1 year but u can always voluntary deposit TAX along with interest after 1 year........If u see the bottom line is deposit of tax & not the return filing.......return filing is just a declaration of ur incomes & taxes thereon..........
3) Vlountary Disclosure Income Scheme (VDIS)- These schmes are introduced to disclose ur undisclosed Income..... but only for a specific period........ now u would say why one would diclose, becos under these schemes No interest & penalty is charged & entire income is taxed at Flat rate......till now 5 such schemes had been introduced.......last time this scheme was introduced in 1997 I guess...........
4) I m not 100% convinced but I think AO wont mind either if u declare it as current year;s income.......
hireshire
(n/a)
(185 Points)
Replied 23 February 2010
Going by your second option, is it possible to deposit tax without filing a return?
Amir
(Learner)
(4016 Points)
Replied 23 February 2010
Dear Hireshire,
Absolutely U can deposit tax..........
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