Income tax
This query is : Open
26 January 2012
DEAR SIR,
WHEN WE WERE PREPARING THE FINANCIAL STATEMENT THE CLOSING STOCK HAS BEEN OVER VALUED.IF THE INCOME TAX AUTHORITY FIND THIS OVER VALUATION WHAT WILL BE THE PENALTY.
REGDS
SHYAMLAL.K
WHEN WE WERE PREPARING THE FINANCIAL STATEMENT THE CLOSING STOCK HAS BEEN OVER VALUED.IF THE INCOME TAX AUTHORITY FIND THIS OVER VALUATION WHAT WILL BE THE PENALTY.
REGDS
SHYAMLAL.K
26 January 2012
Over Valuation of Stock will lead to increase in the income...with regards to the Income tax Authorities if they find the same than they can tax the same on the basis of Unexplained Income...further if you give a justification that its not an unexplained income and its just on the ground of your over valuation of stock..then he might penalize you on not fllofing the accounting policies consistently....and if you satisfy that the policy has been changed....thn he might penalise you for non disclosure of the same...
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26 January 2012
SIR,
But how can they punish us because we have calculated the profit and paid income tax on the basis of overvalued stock.So there is no revenue loss.Please explain sir.
Regds,
Shyamlal.K
But how can they punish us because we have calculated the profit and paid income tax on the basis of overvalued stock.So there is no revenue loss.Please explain sir.
Regds,
Shyamlal.K
26 January 2012
Yes I am telling you that you have paid higher taxes...but why will a person want to pay a higher taxes...so that's the matter which they'll ask for and for penalty they have many provisions....firstly non following of the accounting policies cnsistently, non discolsure of change in method of accounting...and many maore they can invoke if they want...and all of these you can suppress out and put them down legally if but yes its all on to you and your A.O.
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26 January 2012
For Further assistance you can write me at vivekmehta@icai.org or can ring me on 09413118508
26 January 2012
Thank you very much sir,I am expecting this co-operation ahead
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