Income tax return for FY 07-08

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2011 Hi i have not filed income tax returns for some time now though tax is being deducted at source from my salary income

Recently i have got a notice for non filing of return for FY 07-08 and it is mentioned that in case i have filed then a copy may be sent to the incometax office within 7 days or not filed then to inform the incometax officer

Though i am a salaried person with Tax deducted at source but there is a rental income of apprx 100,000 and Capital gains of Rs 45000 on which tax needs to paid additionally.

Can i get some genuine advice and guidance on how to proceed.
I am really confused...

U S Sharma

U S Sharma (Expert)

07 June 2011 Get in touch with a CA immediately and reply the notice under his professional capacity and file return,
he will advise you better after cross checking the concerned bank/cash entries.

Querist : Anonymous

Querist : Anonymous (Querist)

08 June 2011 Hi,

Got in touch with a CA, He is advising that since we cannot file a return now for FY07-08(Time bound), we can go ahead and pay the taxes for FY 07-08(In excess of those deducted at source)and keep mum...
And file return for subsequent years..

Pls advise if this is correct way

regards

Kaushal Jha

Kaushal Jha (Expert)

08 June 2011 You have been issued notice on the very fact that IT deptt has not found your return for the AY 2008-09 (FY 2007-08) despite there being some taxable income.
This is called ESCAPE ASSESSMENT and is covered u/s 147 of IT Act, 1961. Once notice u/s 148 is issued, you will be advised to file your return within 30 days and then the scrutiny proceedings would be initiated against you.

Though time has lapsed for filing of return on your own but you will be issued notice for filing of your return within 30 days and then you can file your return.

Only problem is that besides your usual tax on the income (Salary, rental income, capital gains and others-may be bank interest etc.) you will have to pay interest and penalty as well. Penalty would be 100% to 300% of total tax liability. Usually its 100%.

for further clarification you can mail me at "kkc2000@rediffmail.com"

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