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Genuine source but ITR not filed

Rahul jain (LEARNING & TEACHING) (435 Points)

15 November 2016

Dear frnds there are many people who have genuine source of income but they didnt file itr and if filled ditr it was long before years ago ie.last itr filled by them last 7-8 yr. now hoe to help them and what major things need to be kept in mind while filling itr now.

please suggest ur imp views and advise it will help to many rural and innocent people who are just living with income of rupee 3-5 lac per annum income and their whole family survive on that income only...

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12 Replies

(Guest)

Are you saying that these people did not deposit or spend their income of 3-5 lakh per annum and held the cash for so long?

Nikita (CA Finalist) (72 Points)
Replied 15 November 2016

a traditional system of keeping the money with the lenders providing interest on regular basis might come into picture..

Rahul jain (LEARNING & TEACHING) (435 Points)
Replied 15 November 2016

no i didnt mean to retain cash of 3-4 lac..i mean to net profit of rupess 3-4 lac but no tax is paid or no itr filled...

Rahul jain (LEARNING & TEACHING) (435 Points)
Replied 15 November 2016

what about those people who purchased the property in cash and did not filled itr till....what tax implication can be arise in this situation???

(Guest)

1st of all if his income exceeds 250000/- then he has to file IT return (before deductions), which he has not filed.

If he earns Rs 3-5L during every year, he must have spent atleast2.5L every year (as whole family is dependent).

govt has encouraged the common man to open bank accounts even with zero balance, which he did not do.

Even if he has invested with money lenders how much that can be? more than 2.5 L?

he should deposit it now and file returns regularly. On a safer side you can help him prepare a statement of his income and expenditure for past years and details of his drawings and investment.(Balance sheet). If any query comes he should have enough records to justify the deposits.

1 Like

Santosh (Asst. Manager) (25 Points)
Replied 15 November 2016

thts the black money only though the souce is genuin.govt had given chance of declaration with 40% tax.Now there is only implications from govt side.else if the income is below taxable limits for earlier years and accumulated then deposit it in bank,notice will come that time explain it.IF notice is not came then the luck works.Or else seach for better option with consultants.

Rahul jain (LEARNING & TEACHING) (435 Points)
Replied 15 November 2016

i agree with madhavi jiand and mr. santosh ji..thnks

but i have one more doubt that the person who purchased the property years ago in cash, can he show all the property now in his/her itr...

what can be the action of department against him/her?

1 Like

(Guest)

From 1/5/15 according to section 269SS of Income Tax Act, while transacting Immovable Property, 100% penalty will be levied if seller has accepted an amount of Rs. 20,000 or more in cash from the buyer.

However, if the buyer has bought property in cash in earlier years he has to prove the source of income to the satisfaction of IT officer if there is any query.

cool boy (IT Engineer) (27 Points)
Replied 16 November 2016

Hi, i did not file ITR for FY 2014-2015 (AY 2015-2016).

My income (mostly from salary and FDs and savings Account) was around 20 lakhs.

TDS had been paid for salary and FD both and it shows in form 26AS (Around 2.6 lakhs in TDS was deducted)

But still i have to pay around 100000 in TAX (because of some miscalculation in income in form 16 since i changed my job in that year and some interest on savings account)

If i pay income tax and interest now will it be accepted (we can file ITR for AY 2015-2016 till march 2017 under section 139(1) with 1% interest per month under 234A, 234B and 234C) ?

I do not have to deposit anything in cash since everything is in bank accounts only and that is alreay linked to PAN number.

What are the chances that i file ITR, i will be charged under 270 A and i will have to pay 200% penalty.

Even if 200% penalty is levied will it be on total tax (around 3.7 lakh i.e around 7.4 lakhs) or remaing tax i have to pay (3.7-2.6 lakh already paid in TDS = 1.1 lakh so penalty = 2.2 lakh) since i had not filed ITR ?

All other years ITR is duly filed ( last 6 years) apart from AY 2015-2016.

(Guest)

You have not filed IT return for FY 2014-15 and FY 2015-16.

You can file both returns as belated returns now. Be sure to include income from all sources (salary in a year from old and new employers to be considered). Add interest under all 3 sections. Since you are filing return for Fy 2014-15 after end of the AY, you may have to pay a penalty of rs 5000/-(if the notice comes). There won't be 200% penalty of you do this correctly.

Since the income to be taxed is considerable pl contact a CA or tax practitioner in your area.

rajin (cs) (71 Points)
Replied 18 November 2016

I have almost same issue. FY 2012-15 income not under taxable bracket[below 2L] but fd interest was never included into it. I never filled any return and never recieved any notice. I'm gonna face troubles now?