I never pay tax in the past willing to pay from this year?

ITR 199 views 4 replies

Mr Sharma

self employed

26 Points Joined May 2021

Hello,

I'm self employed earning online since 2013. My income was between 15 to 20 lakhs in a year. I don't do bigger investment, FD, Bonds, Mutual funds etc. That's why nothing is reported in my 26AS. I just live simple life not luxury at all. But from the last few years Government is reforming Tax system and fixing loop holes and now I am little bit worried about it.

Recently last month I got to know that IT Department is asking banks - "if someone is earning 5000 interest in a year from his account / deposits report him to us". I am making around 3 lakhs p.a from saving accounts interest which means from this financial year it may get reflected in the 26AS.

Read it here remark 1 https://www.caclubindia.com/news/files/40_20032_notification_2_2021_interest_income.pdf

Now i believe that something about me will get reported in the 26AS and, if I don't file ITR then they can open a case against me for non-filing of return.

I am willing to pay income tax but i am afraid of being harassed by IT Officers. I have mindset they are bad guy. However I have listen about "faceless appeal" or "Vivad se Wishvas". I Don't know much about it.

So what I want to know- "If I start to pay tax from this year. Is there any chance IT department can ask what was your earnings of the last year because you have earned 20 lakh in this year?

Or CPC will only look for the current year ITR and will approve it if everything is fine and then I will get a way to enter into a White Economy."

I'm just worried of being harassed by them that's why I am not filing my ITR. I don't want to go for previous year. I believe that I am not the first person who is facing this kind of dilemma. Which way should I go? So kindly share yours / any clients experience what happened when they started to pay ITR in this situation. You can also suggest me your views in my case.

Thanks ,

Replies (4)

Samantha J

1236 Points Joined March 2019

CPC will issue notice and open up last year income-tax return. They do this for cases where online return is being filed for the first time.
since you didn't get any notice for earlier years file it this year. Prepare last three years statement of account. do you have a PAN no?

Mr Sharma

self employed

26 Points Joined May 2021

Hi Samantha J,

I have PAN number. That's how I checked my 26AS and I found nothing in it because income / expenses were made via Online mode.

So your mean to say that if I file return for this year then CPC will automatically ask me for my previous years earnings / ITR ?

It means nothing can save me at all they will catch me if I file return and if I don't file return they will also catch me because from this year my Interest which will about 3 Lakh in a year from all my bank accounts will get reported.

veerendar singh

tax consultant

3306 Points Joined October 2018

Sharma ji there are lot of ways to escape from the department's radar.

just by filing last 2 years return major part of your burden can be shoved from your shoulders.

and about the past years, please discuss it personally with an expert

Samantha J

1236 Points Joined March 2019

The dept issues false notice the moment a person files return online first time. This is done to check several things, even if a person had been filing paper returns.
I think you should file this year return along with belated return for earlier two years. Pay tax but for penalty and interest waiver file application for condonation of same.
Else just file this year's and wait for notice and comply with the notice.
I am surprised how did you get online payments to such amounts without quoting PAN? The payer has to deduct TDS for payments beyond 2.5 lakhs.