143 (2) - due to fd

Dear Veeramani,

1)You can submit fee receipt if any issued by your wife to the students.

2) IT returns of previous years showing income from other source can also be presented as a proof.

3) Her professional qulafications might also help you present your case convincingly in front of A.O (that she is qualified enough to be a teacher).

 

HI!

IN MY OPENION

IF PRIMARY WORK OF YOUR WIFE IS TUTION, THEN THE WORK WILL FALL UNDER THE DEFINATION OF VOCATIONAL ACTIVITY AND CHARGABLE TO TAX u/s 28 (PGBP) AS THE WORD BUSINESS INCLUDES PROFESSION.

IF TOTAL RECEIPTS FROM SUCH BUSINESS IF MORE THAN Rs 120000 PER YEAR SHE IS LIABLE TO MAINTAIN BOOKS OF ACCOUNTS u/s 44AA OF THE ACT.

IF RETURN OF AY FOR WHICH NOTICE WAS ISSUED WAS FILED u/s 44AD THAN SECTION 44AA IS NOT APPLICABLE.

NOW COME TO THE DOCUMENTS TO BE SUBMITTED IN RESPONSE TO NOTICE u/s 143(2)

1) READ THE NOTICE CAREFULLY IF ONLY ASKS TO FILE RETURN (IF NOT FILED EARLIER) THAN SIMPALLY FILE THE RETURN.

2) IF NOTHING IS MENTIONED THAN ALL THOSE DOCUMENTS WHICH CAN PROOVE THAT THE MONEY WAS ACTUALLY EARNED AND CORRECTLY REPORTED TO THE INCOME TAX DEPARTMENT. LIKE TUTION FEE RECEIPTS, BANK STATEMENT, BOOKS OF ACCOUNTS ETC.

THANKS

BEST OF LUCK

At the ground level, what matters to the IT deptt is if there was any concealment of income or falsification of records. What has been the income trend of the earlier years and has it been reported under appropriate category if income was taxable. Usually in India private tuition are done without keeping records and no receits are issued for home tuitions. Most transactions are in cash. As you present your case for the said year, the AO may ask records for earlier years so arrange documents that support your claim and that you can backup later not rectract. Read the notice carefully and if required, you can take the help of a CA.

Considering the facts as disclosed by you, it is hard to believe that such enomorous amount was saved from private tutions . 10 lakh one time investment in cash is really a big thing . Documents related to tutions include shop registration, fee receipt, books of accounts, service tax return etc . There are many other ways by which you can save tax on this amount .

Thanks Pratik. Yes, She has submitted under other income for the previous year. Sure, will show the qualification details when we present there. Thank you!

If it is selected under CASS AO will give the questionnaire. U have to submit the proofs accordingly.

Notice u/s 143(2) is generally acompanied by an annexure stating the documents and info reqd. by the officer. 

If the notice requires to prove the source of investment, make sure you collect all the sources and that they have actually been reported in he ITRs of the relevant AY or Prev. years. The sourcs should be legit and must be post tax savings/income. Be careful. If in doubt, contact your CA/Tax consultant.

I agree with Mohit Pathak and Rashi Bajaj completely.

Apart from it, would also like to ask that you have shown all income as income from other sources, that was what you meant? Actually could not understand that well