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Response to income tax letter.

Subhasis (Others) (28 Points)

19 July 2016

My father-in-law sold land in the FY 2013-14 and deposited money to his savings bank account. The amount is more than 10 lacks. He never filed ITR. Now he got letter from Income Tax Department asking “Non filing of Income Tax Return”. I do have knowledge of e-filing. I file my return in ITR-1 (SAHAJ). Can anyone please guide me to response my Father-in-law’s case? Thanks.

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Peeyush (Proprietor) (54 Points)
Replied 19 July 2016

Hi Subhasis,

Cash deposit more than 10 lakhs in S.B. account is always - a waiting invitation for scrutiny. Since the assessee has not filed his returns, your first action should be to file a return (ITR 2 or preferably 4) by getting your working of (hopefully) capital gain tax done by a CA or tax consultant. The returns will be considered belated as it is time barred.(subject to penalty). Give a copy of the acknowledgment to the officer.

During scrutiny, let officer go through the working of taxation and decide the course of action. Kindly take proper guidance of a qualifed consultant before filing returns as capital gain is a vexed section. Filing ITR - 1 (sahaj) is a simpler process and most of your working is done by your employer. Please don t mind, but if you can afford a consultant, you should always have one in handy as he will save you tax in comparision to how much you pay him/her in fees.

All the best.