Demonetisation: Revised income tax returns may be scrutinised

The income tax department will be looking out for manipulation in the amount of income, cash-in-hand and profits

GN Bureau | December 14, 2016


#cashless   #Rs 1000   #Rs 500   #currency   #demonetisation   #Reserve Bank of India   #RBI   #black money   #banking   #income tax return   #income tax department  
Income tax department
Income tax department

If you are planning to file a revised income tax return following demonetisation, then be warned. The income tax department will be looking out for manipulation or fudging and such cases may be taken up for scrutiny.

The income tax department on Wednesday said that the provision to file a revised return of income has been stipulated for revising any omission or wrong statement made in the original return of income and not for resorting to make changes in the income initially declared so as to drastically alter the form, substance and quantum of the earlier disclosed income.

“It is brought to the notice of tax payers that any instance coming to the notice of income tax department which reflects manipulation in the amount of income, cash-in-hand, profits etc. and fudging of accounts may necessitate scrutiny of such cases so as to ascertain the correct income of the year and may also attract penalty/prosecution in appropriate cases as per provision of law,” said a press release.

Under the existing provisions of the Income-tax Act, revised return can only be filed if any person, who has filed a return, discovers any omission or any wrong statement therein.

Post demonetisation of the currency on November 8, some taxpayers may misuse this provision to revise the return-of-income filed by them for the earlier assessment year, for manipulating the figures of income, cash-in-hand, profits etc. with an intention to show the current year’s undisclosed income, including the unaccounted income held in the form of demonetised currency in current year, in the earlier return.

 

Comments

 

Other News

Health groups irked by the SC order on vaccine PSUs

Health groups have expressed their disappointment with a February 12 order of the supreme court, refusing to review or recall an earlier order disposing off a case against the mala fide suspension of the vaccine public sector units (PSUs) and government’s tendency to pamper private sector with public

Cut government stake below 50% in banks: Assocham

The Punjab National Bank`s fraudulent transactions worth Rs 11,300 crore should act as a strong trigger for the government for reducing its stake to less than 50 percent in the banks which should then be allowed to work on the lines of private sector lenders with a full sense of accountability to their sha

Tightrope walking meets poll dance

Budget 2018, forecast to be a “please all” budget, has come out as a “disappoint all” budget. The public is looking askance at a budget that gives with one hand but takes away with both, the Sensex has gone into a tailspin and the pink papers are issuing dire warnings.

Should public sector banks be privatised?

Should public sector banks be privatised?

PNB fraud: Why we need banking reforms

Billionaire jeweller Nirav Modi, whose properties are being searched after Punjab National Bank reported a massive fraud of Rs 11,000 crore, is a good reason why banking reforms

Gender based atrocities happens across the world: Dr Rashmi M Oza

“Gender based discrimination is worldwide and not alone in India. Offences against women are much more severe in cases of international trafficking, forced prostitution and pornography, women including migrant and refugee women face double barriers on virtue of their gender,"said Dr Rashmi M Oza

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter