Hi,
My client income for fy15-16 has risen nearly 28% when compared to previous year fy14-15 returns. Does this qualify for notice/scruitny because of sudden jump in income?
My client is worried because she has heard that lots of people are getting notices. Does a 25-30% increase income qualify for a scruitny notice?
Someone told me that CASS will get check if there is a sudden increase compared to last year. Is this true?
There are 2 income 1st is Gross Income and other is after detuctions. Comparison is made on Gross Income or Income after detuctions?
Because, it is possible that last year we might have saved under 80C and this year no savings which means he has to pay more taxes.
If profit is from business income then compare two years percentage of gp & np with tiurnover.
File The Return
WHAT IF INCOME INCLUDING CAPITAL GAINS IS OVER 200% OF PREVIOUS YEAR INCOME?
Increase of 28% in income is not abnormal rise. Still get all the papers & explanation ready for explanation if sought,
Hello,
Thanks for the response. Last Year Client filed a Gross Income of around 9 Lakhs and After 80C detuction it was 7.5 Lakhs.
This year it is nearly 11.5 Lakhs and Client did not do any 80C detuction. Therefore the question. Client is a senior citizen and has income from FD interest and parttime salary and rental income.
I have filed the tax and lets see what happens.
CAclubindia
