Income tax return
This query is : Resolved
22 August 2014
Is it mandatory to furnish details of personal assets in case of an individual who is subject to tax audit & whose total income exceeds Rs. 25 Lakhs?
What would be the consequences if details are not furnished while filing the return?
What would be the consequences if details are not furnished while filing the return?
22 August 2014
penalty of max 3 times the tax sought to be evaded may be imposed on that assessee for no n disclosure of true n correct information
22 August 2014
No tax has been evaded. The software from which xml is generating says that since the total income exceeds 25 Lakhs the assessee is required to fill details of personal assets.
If the details are not filled than what can be the complications?
If the details are not filled than what can be the complications?
22 August 2014
still for non disclousre various penalty can be imposed under diff sections
22 August 2014
Is it mandatory to disclose?
22 August 2014
yes it is mandatory to disclose. You wont be able to generate the XML otherwise :) and where you decide to fill in ZERO in every cell, then it becomes false disclosure.
Message likes :
1 times
25 August 2014
I can generate xml file without disclosing also.
31 July 2024
Yes, it is mandatory to furnish details of personal assets if you are subject to tax audit and your total income exceeds ₹25 lakhs.
### **Requirements Under Tax Audit for Personal Assets**
**1. **Furnishing Details of Personal Assets:**
- **Applicable Sections:** Under section 44AB of the Income Tax Act, if an individual’s total income exceeds ₹25 lakhs, they are required to furnish details of personal assets and liabilities in their tax return. This requirement is specifically outlined in the Income Tax Rules and is part of the information needed to comply with tax audit requirements.
- **Form 3CD:** The details of personal assets are required to be furnished in Form 3CD, which is a part of the tax audit report. This form is annexed to the Income Tax Return and includes a section where the auditor must declare details of the taxpayer's assets and liabilities.
**2. **Consequences of Not Furnishing Details:**
- **Defective Return:** If you fail to furnish details of personal assets and liabilities when required, your return may be treated as defective under section 139(9). The assessing officer may issue a notice asking you to rectify the defect.
- **Penalties and Scrutiny:** Not providing complete information may attract penalties or increase the likelihood of the return being selected for further scrutiny or assessment. The assessing officer might ask for additional details and may impose penalties for non-compliance.
- **Denial of Refund:** In some cases, failure to provide required details might lead to delays in processing refunds or denial of refunds altogether until the discrepancies are addressed.
**3. **Generating XML File Without Disclosure:**
- **Filing Requirement:** While you can technically generate an XML file without disclosing certain details, it is crucial to comply with the requirements set by the Income Tax Department. Filing incomplete or incorrect information can lead to complications during assessment and possible penalties.
- **Legal Compliance:** It is always advisable to file your return with complete and accurate information to ensure compliance with tax regulations and to avoid potential legal issues.
### **Steps to Comply:**
1. **Complete Form 3CD:** Ensure that your tax auditor fills out Form 3CD accurately, including the details of personal assets and liabilities.
2. **File Accurate Return:** Make sure the income tax return includes all required details as reflected in Form 3CD.
3. **Rectify Defects:** If you receive a notice for a defective return, promptly rectify the issues and resubmit the correct information.
If you need more specific guidance or assistance with filling out Form 3CD or any other related queries, feel free to ask!
### **Requirements Under Tax Audit for Personal Assets**
**1. **Furnishing Details of Personal Assets:**
- **Applicable Sections:** Under section 44AB of the Income Tax Act, if an individual’s total income exceeds ₹25 lakhs, they are required to furnish details of personal assets and liabilities in their tax return. This requirement is specifically outlined in the Income Tax Rules and is part of the information needed to comply with tax audit requirements.
- **Form 3CD:** The details of personal assets are required to be furnished in Form 3CD, which is a part of the tax audit report. This form is annexed to the Income Tax Return and includes a section where the auditor must declare details of the taxpayer's assets and liabilities.
**2. **Consequences of Not Furnishing Details:**
- **Defective Return:** If you fail to furnish details of personal assets and liabilities when required, your return may be treated as defective under section 139(9). The assessing officer may issue a notice asking you to rectify the defect.
- **Penalties and Scrutiny:** Not providing complete information may attract penalties or increase the likelihood of the return being selected for further scrutiny or assessment. The assessing officer might ask for additional details and may impose penalties for non-compliance.
- **Denial of Refund:** In some cases, failure to provide required details might lead to delays in processing refunds or denial of refunds altogether until the discrepancies are addressed.
**3. **Generating XML File Without Disclosure:**
- **Filing Requirement:** While you can technically generate an XML file without disclosing certain details, it is crucial to comply with the requirements set by the Income Tax Department. Filing incomplete or incorrect information can lead to complications during assessment and possible penalties.
- **Legal Compliance:** It is always advisable to file your return with complete and accurate information to ensure compliance with tax regulations and to avoid potential legal issues.
### **Steps to Comply:**
1. **Complete Form 3CD:** Ensure that your tax auditor fills out Form 3CD accurately, including the details of personal assets and liabilities.
2. **File Accurate Return:** Make sure the income tax return includes all required details as reflected in Form 3CD.
3. **Rectify Defects:** If you receive a notice for a defective return, promptly rectify the issues and resubmit the correct information.
If you need more specific guidance or assistance with filling out Form 3CD or any other related queries, feel free to ask!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ADT-3 AND ADT-1
- TDS Under Section 194IA Where More than one Buyer and More than one Seller
- FOREIGN GAIN AND LOSS
- Itr .….......
- Interest on Capital-Partnership Firm
- E-way bill issue with two invoice
- Investment in Two Residential Houses
- ABOUT RE-OPENING OF CASE
- ITC claim of capital goods
- Mvat Reurn filling for Restaurant & Bar
- IRN was not generated for October-2025 Invoice but generated e waybill, now it is self identified,
- 80G deduction eligibility
- GST on Tobacco - as per new notification
- Cant amend a 26QB
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- TDS under section 195.
- Filing GST Returns after death of proprietor
- Registered Required in GST Act
- Switch over to Composition Scheme
Trending Online Classes
-
Online GST Course - Master the Fundamentals of GST with Practical Insights
Ruhi Joshirao19 January 2026
CAclubindia
