Income tax double, Income Tax

[Sahadev Maity]

Dear sir, I would like to know what would be the pros and cons if I increase my taxable income amount double than previous year on same source of income?

For example: I run a shop, in the fn yr 2015-2016 I had shown rs-200000 as taxable income after all diduction but in the next fn yr 2016-2017 I increase the taxable income by Rs-400000 after all diduction which is double than previous yr with out any business expansion. Then what would be the pros and cons. Would i get any notice from tax department?

Posts / Replies

[KASTURI SETHI]

In my view, you will not get any notice from Income Tax Department. When you pay more income tax, it gives positive message. If Income Tax paid alarmingly less than previous year, even then notice is not feared. If downward trend continues for many years, then the department gets suspicious. Upward trend does not create problem. This is my observation based on experience.I am not expert in Income Tax Act.

[Ganeshan Kalyani]

how will you justify your sales turnover ?