WHITE MONEY

Start filing the return now. If you have taxable income you have to bear the tax liability. Tax Planning is legal but tax evasion is illegal

Wanting official income without paying taxes on it is like you want to have a cake and want to eat it too.

See things are not going to simple as stated by your client. with the advent of unique id and other information technology and upgradation of softwares etc you never know what will happen. It is better to pay taxes atleast from now on. The earlier periods should not be touched otherwise huge penalties and interest will have to be borne by the assessee.

no dear rachit

i think you misunderstood.

i hav the solution, as his total earnings is in the form of cash there is no way he can be scrutinized, nor he files any return,

i can advice him to continue paying tax from now.

but wt i want is wht ever he has earned till now, instead of not paying any tax- as he can there is no proof of his income.

i am advising him to pay tax. make your mone complete white.

so iam just asking

is their any smart way (taxplanning) in such a case where BOTH GOVERNTMENT & THE TAXPAYER will benefit.

Govt. benefits only from Tax collections.

In order to conver his past undisclosed income into white, my suggestion would be - Let him start filing the returns from now on incl. the previous 2-years. Disclose more income than actually earned prospectively; by way of taking speculative profits bills from share brokers, commodity brokers. Pay necessary taxes. Thats the only way to avoid penal and interest provisions which would be attracted in the event of a raid or scrutiny

Hello Friends,

Sorry i am wrong.

Please don't thease thing in forum.

Tell him to prepare a statement of 'CAPITAL BUILDUP' in that he can show past years income how he has arrived then show current year income prepare P&l & Balance sheet & file the return with the department ..if he has taxable income for past 2 years then he has to file the same otherwise he will be exempt from tax for last years.....