Return not filed

This query is : Resolved 

Querist : Anonymous (Querist) 27 March 2011

A relative of mine who is female pensioner wants to file a return. She had a income of approx 3-4 lac each year for the past 3 years and did not file a return. This income was from pension and interest. I have advised her to file past returns with penalty but she is afraid of scrutiny. She only wants to file future returns.

1. Is it advisable to file the past returns now.

2. If she files this year's return without filing past years return, what is likely to happen ? Will IT find out and what action do they generally take in such cases?

3. What is the best approach in such cases to minimize scrutiny?

Any help will be appreciated.

27 March 2011

As of today she can file returns for AY 09-10 and 10-11 only. Return for 09-10 should be filed immediately as the last date is 31.3.2011.

Murtaza Bhagat (Expert)
27 March 2011

yes agreed, she can file return for A.Y. 09-10 & A.Y. 10-11.
If you have not filed past Year return but in past years you were not have any tax or if had then it would be paid. if NIL return then no problem if not filed
IT dept. not always react in every case but if they doubt then they react otherwise if everything is normal then no problem to just holding Form 16.
For fear of Srutiny as above

Querist : Anonymous (Querist) 27 March 2011

Thank u for ur help, sir. For some reason, she does not want to file the past returns. She wants to file future returns only. When she files return in future, can she get in trouble for not filing previous years return because she had Rs 4 lac income in the past yr from investments and did not pay taxes on it?

28 March 2011

Yes she may have problems. It is better to be tax compliant. The Income Tax Department may or may not come to know about such income in future. I will give the chance of getting caught is 30 out of 100.

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