Sir/Madam,
One of our client have received notice from Income Tax for non filling of return, for A.Y.10-11-12-13 but unfortunately he has not filled his return since A.Y.08-09, he was government employee, since his retirement on 2007 then after he has not filed any income tax return yet, he was in the impression that TDS been deducted by bank and his for interest and pension hence no need to file the return, but now he is ready to file all possible returns with interest and penalty.
What is the best way to come out from it, would it be better for him to contact the concerned A.O for granting permission to file the returns, or he can file both A.Y.12-13 and 13 14 right away and main time reply the notice stating returns not filled, and wait till the next notice, or is there any other way to come out from it.
He got almost 50 lakhs as retirement benefits, in 2007 and put it into FD’s in joint (with his wife) and interest are credited to the joint saving account and TDS deducted by bank shows under his wife’s PAN. But his wife also not filed any income tax return till date, when interest are more than taxable income, shall we advised him to file his wives’ return asap, and his this year return also.
As per the law the interest which his wife earned from bank is suppose to be added into his income as he has not gifted the amount to his wife, and there is no gift deed been signed, or can he still treat the amount as gift to his wife,
Please reply
Regards
Renuka
CAclubindia
