Transfer of a capital asset other than house propery

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My client has Sold a shop for Rs 1750000 and deposited the cash amount in bank. But papers are available only for Rs 300000. Not filed the ITR even. Invested the sale proceeds in purchasing a land!!Received a income tax notice attached herewith. How to deal with it?? Please guide!! Its urgent!! I shall be thankful to you!!


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Replies (4)

if shop (which is sold ) is not shown in earlier balance sheet then it is also 

treate as undisclose investment and add to your income 

Huge cash is depisit for which u have to expain the source of income 

pay tax whatever applicable 

Calculate the capital gain tax and file the return properly for that year and if ur client has invested the sale proceeds in othe assets than exemption u/s 54 F can be claimed but first collect the facts from the client.
And remember last date is 31.03.2017 for filing the return for FY 2014-15.

also disclose investens not shown in books of accounts and sell it 

  pay tax as per require 

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