My CA filed my ITR for AY 25-26 a few days ago. I have claimed 20L (indexed to 30L) cost of improvement and transfer costs, which I don't have any documentary proof for (neither invoices nor bank transactions - it was all done in cash). The tax "saving" is 6L.
As per my CA, the chances of this being scrutinized is <1%. So, I went ahead with it. But now I am having second thoughts -- if the scrutiny happens, I will have no documentary proofs to back up my claim and will have to shell out ~20L for tax, interest, and penalty.
What is the best course of action for me? Should I follow my CA's advice? Or, file revised return and pay the additional tax? I am not sure if my CA is trying to "save" me some money or trying to get me in a potentially bad situation to extract more money from me later on.
CAclubindia
