Rakesh C (1 Points)
21 March 2023I have received a summon from IT India referring to undisclosed foreign assets or interest.
It does not specify any assets in specific but only assets of such nature that I have is ESPP stocks.
I left the company that gave me ESPP stock in year 2020 and missed declare ESPP stock for AY 21-22.
How do I reply to summon? Can I correct the ITR for FY 21-22 before replying?
CA Rakesh Ishi
(Working at Private Company)
(7775 Points)
Replied 26 March 2023
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.
CA Sorav Gupta
(Chartered Accountant)
(1000 Points)
Replied 27 March 2023
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)
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