Error in balancesheet

ITR 853 views 3 replies

radha

Others

37 Points Joined November 2013

She started filing return in 2008 .

Year ITR Return balancesheet

(investment towards ppf) (total towards ppf)

2008-2009 70000 70000

2009-2010 70000 140000

2010-2011 70000 140000

2011-2012 70000 140000

She invested 70000 per year in ppf and stated same in ITR and claimed rebate for that . However she stated wrong figures in balance sheet .. Her total investment towards ppf should be 210000 and 280000 in 2010-2011 & 2011-2012 return .

"In the above case there was no tax evaded as interest on ppf is not taxable , It is just clerical error " ..

1.So if the above case fall in scrutiny , Will there be any penalty due to stating wrong figures in ppf regarding total investments towards ppf ?

2. Will excluding ppf from balance sheet in future returns possible remedy for this problem?

Thankyou

Replies (3)

Mohan

Accounts Mgr

209 Points Joined May 2009

She is " Individual", If her case under presumptive tax method there is no need to show her books of a/cs. If other wise means a Tax audit, the debit for PPF and relevant credit entry also missed in audited balance sheet. So better to revise her I.T Return (if possible), if not - submit voluntary explanation for the clerical error to the I.T authorities at the time of Assessment and explain there is no income concealment since it is a Balance sheet item not related to P&L.

radha

Others

37 Points Joined November 2013

Originally posted by : Mohan
	She is " Individual", If her case under presumptive tax method there is no need to show her books of a/cs. If other wise means a Tax audit, the debit for PPF and relevant credit entry also missed in audited balance sheet. So better to revise her I.T Return (if possible), if not - submit voluntary explanation for the clerical error to the I.T authorities at the time of Assessment and explain there is no income concealment since it is a Balance sheet item not related to P&L.

"There is no concealment of income as figures were correct in Annual ITR in YOY basis. She just forgot adding same figures to balance sheet ..

So will showing annual ITR returns enough to prove that there was no concealment ?"

So does it mean can she relax her mind ?and no penalty will be imposed ?

Mohan

Accounts Mgr

209 Points Joined May 2009

It is Error only. Usually happens. There is no fraud or misleading the I.T. Dept in this case. And No loss to the Revenue. Hence just relax and no penalty will be imposed on this matter. :-)