Income declaration scheme

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2016 An individual has an actual business income of 10 Lakhs and by over-invoicing purchases/ under-invoicing sales is showing a taxable business income of 5 lakhs for several years and his total fair market value of the past undisclosed income is 40 lakhs in cash, he declares this under the IDS. He thus becomes immune to scrutiny.

My queries:

Is there any further scrutiny or penalties for wrong declaration of returns in the past?

Will there be a problem if he suddenly starts showing a 10 lakh business income from the next year (At actuals)?

Will there be any additional penal charges for past undisclosed business income which is older than 6 years?

Can he just disclose this at actuals and continue disclosing at actuals from the following year onwards? If yes, how should the source be declared?

Please help. Thank you in advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

22 August 2016 1 If he declares under IDS further scrutiny or penalty will not be there, for wrong declaration in the past.
2 No problem as you have already declared past profit in IDS, you can declare actual profit in future.
3 No additional penal charges for income older than 6 years.
4 Yes, declare actual past and future and declare the source as business income.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now