Is it compulsory to disclose source of income

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vikas kumawat (Querist)
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28 September 2013 if an assessee wants to pay tax on an income of which source he can't disclose....... and to proove year of earning he shows bank statement of previous year in which above income was deposited by anonymous or say i earn this income outside india. ...... whether department can bother assessee by penalty or will normally charge tax.....?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 September 2013 It is not compulsory. You will be taxed under section 68.

You can be levied with penalty under 272A(1)for failure to disclose truth. Penalty Rs 10000.

Whether penality under 271(1)(c) can be levied or not shall depend on whether any tax is being evaded or not. Since your client wishes to pay tax, he may escape 271(1)(c).

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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07 October 2013 If you have already shown the credited amount in the bank then you have to pay the regular tax and this income shall not be assessed u/s 68 as you have shown as income and not as cash credit