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very very very urgent

manik (ca in practice) (420 Points)

16 March 2011

one of our assessee has forgot to compute some of his income in the the previous year 's return, my question is can we book that income in current year and pay taxes thereon. please suggest ????other than revised return

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10 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 16 March 2011

It is advisable to Revise the Orginal Income Tax Return and show the Income which was not shown in the Original Return instead of showing it as Prior period Income.

Regards,
Devendra Kulkarni

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(Guest)

In case the option of Revising the Return is not to be considered, the only way to disclose the income not considered in Previous year’s Return(s) is to Add the same to current year’s Income.

CA abhinandan agarwal (CA CS Bcom(H)) (174 Points)
Replied 16 March 2011

u/s 139(5) if return is timely filled i.e not a belated return it can revised ..time limit is 1 year from the next assessment year and assessment procedure whichever is earlier..so its better to revised the return and book the income ....

CA. Santosh Prajapati (Practice) (97 Points)
Replied 16 March 2011

"u/s 139(5) if return is timely filled i.e not a belated return it can revised ..time limit is 1 year from the next assessment year and assessment procedure whichever is earlier..so its better to revised the return and book the income ...."

Agree with Abhinandan

(Guest)

go for revised return....

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Vikash Kharvar (Dy. Manager -F&A) (469 Points)
Replied 16 March 2011

You shuld revise your IT return.............

Dintakurthi Tirumala (CA FINAL) (15994 Points)
Replied 16 March 2011

For some incomes there is no chance to offer as income in the current year so u should be file revised return like salary should be taxable for the year of accrued or received which ever is earliear. So in your case the decission will be depended on you case facts

Thank you

OM SAI SRI SAI JAI JAI SAI

BASNAIR (Manager-Accounts & IT Systems) (138 Points)
Replied 16 March 2011

Please file a Revised IT Return.......

Prabhaharan (Internal Controller) (57 Points)
Replied 16 March 2011

If the assessee follows a cash system of accounting and the same is regularly followed by the assessee, he can offer his income in the year in which he received (Sec. 145). If not, then strictly speaking only option is to revise the return subject to original return is filed within the due date U/s 139(5). If original return is not filed in time, then include the income in the current year as prior period income.