Past year profit not shown then but want to show now.

A profit was not shown in the year in which it actually accrued. Assessment of that year return has been done. Now after 3 years the assessee wants to show this profit. Which provisions of the Income Tax Act should be referred to?

Replies (3)

Dear Hireshire,

Good one brother..........

I am beleving that there are no 2 opinions regarding the year in which income is to be taxed or lets say the income was also received in the year in which it was accrued.....

Since 3 years has paased now u cannot revise the return...............

Ideally it CANNOT be taken as Income of current year...........

There are 4 options -

1) Reassessment u/s 147 or Raid  - But then thats AOs prerogative

2) Law only prohibits the revision of return voluntarily after 1 year but u can always voluntary deposit TAX along with interest after 1 year........If u see the bottom line is deposit of tax & not the return filing.......return filing is just a declaration of ur incomes & taxes thereon.......... 

3) Vlountary Disclosure Income Scheme (VDIS)- These schmes are introduced to disclose ur undisclosed Income..... but only for a specific period........ now u would say why one would diclose, becos under these schemes No interest & penalty is charged & entire income is taxed at Flat rate......till now 5 such schemes had been introduced.......last time  this scheme was introduced in 1997 I guess...........

4) I m not 100% convinced but I think AO wont mind either if u declare it as current year;s income....... 

 

Going by your second option, is it possible to deposit tax without filing a return?

Dear Hireshire,

Absolutely  U can deposit tax..........

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