01 November 2012
While filling IT returns of our Pvt Ltd. company for ay 12-13 we have done following mistake
1. punched authorised capital as 50 lakhs instead of 5 lakhs 2. Deferred tax calculation was done i.e. instead of exp. we have shown as income & amount of deferred tax also will be different.
as per our auditors opinion income tax department don't consider above referred data in their checking & hence we are not required to file revised IT return . Pl advice in the matter
21 July 2024
If your auditors have advised that the Income Tax Department typically does not scrutinize or consider certain errors like the ones mentioned (punched authorized capital and deferred tax calculation), here's what you should consider:
1. **Review Auditor's Advice**: Since your auditors have given their opinion that these errors are unlikely to be scrutinized by the Income Tax Department, it suggests they believe the errors are not material for tax assessment purposes. This is based on their experience and understanding of tax assessment practices.
2. **Consider Materiality**: The concept of materiality in accounting and taxation suggests that errors which are not significant enough to impact the financial statements or tax liabilities may not require revision. If the errors are not materially affecting the tax position or financial statements, revising the return may not be necessary.
3. **Consultation with Tax Advisor**: It's prudent to discuss this further with a tax advisor or consultant who specializes in corporate tax matters. They can provide a more precise assessment based on the specific details of your case and ensure compliance with tax laws.
4. **Future Compliance**: Moving forward, ensure that all future tax returns are filed accurately. Double-check all figures and calculations before submission to avoid potential errors that could impact tax liabilities or financial reporting.
5. **Risk Assessment**: Assess the risks associated with not revising the return. While your auditors have given their opinion, it's essential to weigh the potential consequences if the Income Tax Department were to discover the errors during an assessment or audit in the future.
In conclusion, while your auditors have indicated that revision may not be necessary based on their experience, it's advisable to seek confirmation from a tax expert to ensure compliance and mitigate any potential risks. They can provide tailored advice based on the specifics of your situation and help you make an informed decision.
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