hello everyone,
one of my friend received income tax notice for non filing of income tax return for the AY 2011-12. His father performed a transaction of Rs. 94,60,000, which was deposited in saving bank A/c by him. The said money was realized from sale of agriculture land. Now his father is no more and they utilized the said money in marriages of his daughters.
Rs. 64,60,000 was deposited by his father in his A./c
Rs. 22,00,000 was deposited in his son's A/c
Rs. 8,0,0000 was in other son's' A/c
following are queries:
1) how to face the problem ?
2) i think such land is situated in rural area, because as per 2011 census, population of our town is approx. 68000. but i am not sure about the aerial distance of land from municipal limits ( which is 4 km from limits). Land is situated in town Nabha ( distt. patiala of punjab). what should i have to do to measure the distance. 3) what should be the maximum tax liability that can be imposed by deptt.
4) is AO has power to remit penalty and tax ? 5) how to reply to AO ? ( viz:- format of letter )
6) what should be the consequences, if we ignore the notice ? please reply and give your suggestions. thanx in advance.
CAclubindia
