stock decalred as per income tax survey

Pawan Singhal (chartered accountant) (655 Points)

17 December 2009  

rs. 12 lack undisclosed stock declared by the assesse. we have done effect in accountinf as :-

 undisclosed purchase a/c dr. 1200000

       To Capital a/c                                            1200000

so purchased increased by 12 lakh and closing stock also increased by 12 lakh. So impact on n.p is still Nill .

but Ito say you have to pay income tax on Rs. 1200000 which is declared by you.

My question is that whether we have to pay income tax on Rs. 1200000 which is introduced as a capital during survey.

Thanking you.