Tax on extra income, Income Tax

[RANDEEP GUPTA]

IF SOME ONE WANTS TO DECLARE EXTRA(UNDISCLOSED ACCUMULATED INCOME) INCOME AND PAY TAX ON IT, WHETHER INCOME TAX DEPARTMENT WILL ACCEPT IT WITHOUT ANY QUERRY

Posts / Replies

[Rama Krishana]

Before income tax department, I have many queries, like what is the nature of undisclosed accumulated income. How it could escape from income tax? What is the tax liability if the same is shown during the relevant assessment year? How much would you save by deferment of such income? Therefore, if i have so many question, why do you think that ITO would not ask anything. If your case is selected for assessment u/s 143(3) or 147 or 158BC, you have to justify the queries if any regarding your action of doing or omission.

[DEV KUMAR KOTHARI]

The department will willingly accept the income disclosed as income of current year. However, based on current years income disclosed, the department may try to reassess income of earlier years- lower income shown by assessee. In case current income is from proved sources, then this will be current income, and that cannot be basis for reassessing past income, if the assessee did not have such income in past. However, if current income is not fully explained as income of current year/ or it is of miscelleneous catagory without referable source, then there can be presumption that assessee had such or similar income in past also and that was not disclosed.