Is revised return possible after notice of sec 143(2)
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 January 2016
Sir,
One private ltd formed in 2013-14 and land related to such company registered on sep 2013 in the name of company. Stamp value is 10 Crore and purchase price is 1 crore whereas in f.y 2013-14 land acquisition has not been shown in co's balance sheet. Co was not covered U/s 44AB. Moreover return 2014-15 has also not been filled yet. All director of such company are NRI. Now, notice u/s 143(2) has been received.
My query is this - Can filled revised return for the F.Y 2013-14 now to show land as assets and unsecured loan from directors in Co's books of accounts?
Is difference between purchase price and stamp value will be taxable in the hand of purchaser? If yes kindly provide me solution how can i minimize such tax.
Is there any notification for NRI for relaxation of filling return of their company for F.y 2014-15 till march 2016 if not covered in tax audit.
One private ltd formed in 2013-14 and land related to such company registered on sep 2013 in the name of company. Stamp value is 10 Crore and purchase price is 1 crore whereas in f.y 2013-14 land acquisition has not been shown in co's balance sheet. Co was not covered U/s 44AB. Moreover return 2014-15 has also not been filled yet. All director of such company are NRI. Now, notice u/s 143(2) has been received.
My query is this - Can filled revised return for the F.Y 2013-14 now to show land as assets and unsecured loan from directors in Co's books of accounts?
Is difference between purchase price and stamp value will be taxable in the hand of purchaser? If yes kindly provide me solution how can i minimize such tax.
Is there any notification for NRI for relaxation of filling return of their company for F.y 2014-15 till march 2016 if not covered in tax audit.
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 April 2016
no one is there to solve my query ?
01 August 2024
### Revised Return Post Notice Under Section 143(2)
Once a notice under Section 143(2) of the Income Tax Act has been issued, a taxpayer cannot file a revised return for that assessment year. Section 139(5) allows for the filing of a revised return if there is any omission or wrong statement in the original return, but this can only be done before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
Since you have received a notice under Section 143(2), it indicates that the assessment has commenced. Consequently, the option to file a revised return is no longer available.
### Tax Implications of Stamp Value vs. Purchase Price
Under Section 56(2)(x) of the Income Tax Act, if a person receives an immovable property for a consideration that is less than the stamp duty value of the property by an amount exceeding Rs. 50,000, the difference is considered as "Income from Other Sources" and is taxable in the hands of the recipient.
In your case, since the purchase price is Rs. 1 crore and the stamp value is Rs. 10 crores, the difference of Rs. 9 crores could be considered as taxable income in the hands of the company.
### Steps to Minimize Tax Impact
1. **Valuation Report**: Obtain a valuation report from a registered valuer to justify the purchase price if it can be substantiated that the fair market value is closer to the purchase price rather than the stamp duty value.
2. **Representation**: Make a detailed representation to the Assessing Officer (AO) during the assessment proceedings explaining the circumstances and providing supporting documents.
3. **Legal Opinion**: Obtain a legal opinion to back your case, which might help in convincing the AO or in appellate proceedings.
4. **Settlement Options**: Explore the possibility of settlement under the Income Tax Settlement Commission if the tax liability is significant and there are complexities involved.
### Relaxation for NRIs in Filing Returns
There is no specific notification providing relaxation for NRIs regarding the filing of returns for their companies up to March 2016, especially if the company is not covered under tax audit. The due date for filing returns applies universally unless specifically extended by a notification from the Central Board of Direct Taxes (CBDT).
### Conclusion
1. **Revised Return**: Not possible after receiving notice under Section 143(2).
2. **Tax on Stamp Duty Difference**: Likely to be considered as taxable income. Obtain a valuation report and make a representation to minimize the impact.
3. **NRI Relaxation**: No specific relaxation for NRIs in filing returns up to March 2016.
Given the complexities, it is advisable to consult with a tax professional or a chartered accountant to navigate the assessment proceedings and minimize any potential tax liabilities effectively.
Once a notice under Section 143(2) of the Income Tax Act has been issued, a taxpayer cannot file a revised return for that assessment year. Section 139(5) allows for the filing of a revised return if there is any omission or wrong statement in the original return, but this can only be done before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
Since you have received a notice under Section 143(2), it indicates that the assessment has commenced. Consequently, the option to file a revised return is no longer available.
### Tax Implications of Stamp Value vs. Purchase Price
Under Section 56(2)(x) of the Income Tax Act, if a person receives an immovable property for a consideration that is less than the stamp duty value of the property by an amount exceeding Rs. 50,000, the difference is considered as "Income from Other Sources" and is taxable in the hands of the recipient.
In your case, since the purchase price is Rs. 1 crore and the stamp value is Rs. 10 crores, the difference of Rs. 9 crores could be considered as taxable income in the hands of the company.
### Steps to Minimize Tax Impact
1. **Valuation Report**: Obtain a valuation report from a registered valuer to justify the purchase price if it can be substantiated that the fair market value is closer to the purchase price rather than the stamp duty value.
2. **Representation**: Make a detailed representation to the Assessing Officer (AO) during the assessment proceedings explaining the circumstances and providing supporting documents.
3. **Legal Opinion**: Obtain a legal opinion to back your case, which might help in convincing the AO or in appellate proceedings.
4. **Settlement Options**: Explore the possibility of settlement under the Income Tax Settlement Commission if the tax liability is significant and there are complexities involved.
### Relaxation for NRIs in Filing Returns
There is no specific notification providing relaxation for NRIs regarding the filing of returns for their companies up to March 2016, especially if the company is not covered under tax audit. The due date for filing returns applies universally unless specifically extended by a notification from the Central Board of Direct Taxes (CBDT).
### Conclusion
1. **Revised Return**: Not possible after receiving notice under Section 143(2).
2. **Tax on Stamp Duty Difference**: Likely to be considered as taxable income. Obtain a valuation report and make a representation to minimize the impact.
3. **NRI Relaxation**: No specific relaxation for NRIs in filing returns up to March 2016.
Given the complexities, it is advisable to consult with a tax professional or a chartered accountant to navigate the assessment proceedings and minimize any potential tax liabilities effectively.
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