ESPP Stocks and Summon U/S 131(1A)

Once you have gathered all relevant information and sought professional help, you can reply to the summons in writing.

The reply should include a detailed explanation of your ESPP stocks, along with any supporting documents, such as purchase agreements, share certificates, and tax receipts.

You should also mention that you have corrected your ITR and filed a revised return, if applicable.

Draft a reply mentioning the details of the foreign asset and that no intention of tax evasion was there by non-disclosing of this information in the ITR. The AO will examine your contention and can levy a penalty on you under The Income Tax Act, 1961 due to the non-disclosure of specified information in the ITR.

It is suggested to obtain the consultancy of any tax expert in the drafting of reply & handling of proceedings to minimize the tax demand.

The ITR of F.Y. 21-22 can not be revised now as the time has lapsed.

In case of any further queries, kindly mail me at casoravgupta @ gmail.com

Thanks & Regards
CA. Sorav Gupta
(Practicing Chartered Accountant)

Hi Rakesh,

In a similar situation. How did you ho about addressing it ?

Thanks,

Rajan