Hello,
Practically, there are many people who haven't filed any returns until now but want to take a housing loan. For that reason, generally(correct me if I'm wrong) any bank will require at least 3 years of Income Tax Return of that person. So for that it is a common practice to file 2 returns together and the 3rd return in the following april/may..Many of these people do not have income that matches even the basic exemption limit or sometimes even half of it.
I have the following queries in this regard:
Please consider a dummy example of a male individual named ABC. He wants to take a housing loan but hasn't filed his return yet and hence he files his returns for the financial years 9-10 and 10-11 i.e. Assessment Years 10-11 and 11-12 in March 2012. He then files his 3rd return for Assessment Year 12-13 in May 2012.
1) Can he be penalised u/s 271F for return for Assessment Year 10-11 even though he wasn't obligated to file a return u/s 139(1) since his GTI is less than Rs.150000?
2) Despite of him not having any major income, if he shows say Rs.145000 as Business Income(say labour charges) which is quite usual, what are the risks? What are the chances of his case coming in scrutiny? (hoping for a practical answer at CCI forum for this query)
CAclubindia
