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Never filed it return

Anjali Agrawal (Student) (67 Points)

03 October 2015

Dear Sir,

i have never filed my Income Tax Returns (My age is 52) but i have started filing my income tax return from last three years only i have shown 1.78 lakh,3.76lakh, &2.10 lakhs profits for last three years (from F.Y. 2011-12 to 2013-14)respectively and in this F.Y.-2014-15 i have purchased a residential house property (i have only 1 house property) occupied by me by making cash payament of 16 lakhs to seller Registered Value is also 16 lakhs...so can i purchase it??? how my balance sheet be prepared according to Income Tax???pls help

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20 Replies

Vishal (Article Asst.) (95 Points)
Replied 03 October 2015

You have purchased a house property so in the Balance sheet you can show it as your Investment or Fixed Asset as the case may be but the Cash Payment of Rs 16,00,000/- may create the problems for you...Though the Registered Value is also 16 Lacs you were suppose to make payment through Cheque or online. Cause cash payment even in case of Land Deals exceeding Rs. 20,000/- is not allowed.

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sanjeev agrawal (fdfvd fb ) (52 Points)
Replied 03 October 2015

what would be your answer if i have paid 16 lacs through cheque in that case also i dont have enough capital according to Income Tax 1.78+3.76+2.10+7.64 LAcs Only

Karthik.V.Kulkarni (Chartered Accountant) (594 Points)
Replied 03 October 2015

Hi Sanjeev,

You have to explain how the investment was maid to tax authorities or else they have the power to asses the amount of investment as your income u/s 69

Regards

Karthik V Kulkarni

Miss Rinkal (Student) (1304 Points)
Replied 03 October 2015

Please provide some more details:

What source of income do you earn? What were the source of income you had shown in the returns filed? My reason of asking you these question is if the source of income is not from business or profession, then balance sheet preparation is not required.

The question regarding house property is not clear? You are asking or telling?

Has the property already purchased or you are asking how to incorporate the same in the returns?

Now if the property is purchased whether in cash by any other mode, you need to show under income from house property. Since that is the sole property, you can claim as Self occupied property. Its annual value will be nil.

Also in the return, declare your other sources of income like interest on FD, RD etc, bank interest. If invt in shares is made then dividend income and if any sale of shares made then the will be capital gains. These are just a few examples.

While filing your return, prepare a gist of your incomes earned for the fy. Keep the bank account details ready.

Udgam Koomar (Tax Technologist) (1949 Points)
Replied 03 October 2015

Prior to these 3 years you had some small income that you were accumulating or you got inheritance or gift?

Miss Rinkal (Student) (1304 Points)
Replied 03 October 2015

@ Vishal:

The cash payments exceeding 20000 disallowance is from fy 2015-16. It has no re!evance as the asset is already purchased. Cash payment is no issue in this case because if she has to prove to the IT dept regarding cash generated then in that case that the payment of 16 lacs is from income generated over the period of years and not just from these 3 years in which the returns were filed

@ Anjali agarwal:

As far as possible do cheque payments when it is substantially of high amt. Avoid cash payments

Ronald D' Silva (3 Points)
Replied 03 October 2015

Dear Madam Anjali As you have filed 3 years IT returns, you can take a housing loan of 10 laks + n balance you can pay by cash U can get principal n interest benefit. If required you can clear that HL in 5 years.