a U.S. friend of mine is about to file his taxes and he may claim some deductions that may ITO may or may not approve. What happens in this scenario?!! It's regarding capital gain tax.
Devendra
(Chartered Accountant)
(4775 Points)
Replied 04 October 2011
If the ITO disallows the deductions then your frined shall be liable to pay the Tax alongwith the interest.
But if you think that as per your knowledge the deductions claimed are correct and even though the ITO has disallowed the deductions, then you can make an appeal.
Regards,
Devendra K
CAclubindia
