Tax payers have been warned of strict action in case they misuse the provision provided in the Income Tax Act to manipulate their IT returns by showing show major alterations will face penal action.
The finance ministry, in a notification issued on Wednesday, said that in the wake of the demonetization exercise kicked off on November 8, several taxpayers may misuse this provision to revise the return-of-income filed by them for the earlier assessment year, and manipulate the figures of income, cash-in-hand and profits with the intention to show the current year’s undisclosed income -- including the unaccounted income held in the form of demonetized currency in current year-- in the earlier return.
“It is brought to the notice of tax payers that any instance coming to the notice of Income-tax Department which reflects manipulation in the amount of income, cash-in-hand, profits ... and fudging of accounts may necessitate scrutiny of such cases so as to ascertain the correct income of the year and may also attract penalty or prosecution in appropriate cases as per provision of law,” the notification said.
Under the existing provisions of Section 139(5) of the IT ax Act, 1961, revised returns can only be filed if any person, who has filed a return under Section 139(1) of the Act discovers any omission or any wrong statement therein.
{{/usCountry}}Under the existing provisions of Section 139(5) of the IT ax Act, 1961, revised returns can only be filed if any person, who has filed a return under Section 139(1) of the Act discovers any omission or any wrong statement therein.
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