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Any Attempt To Manipulate Income Tax Returns Will Invite Stringent Action: Finance Ministry
Filing income tax returns
On 14 December, the Finance Ministry said that any drastic alterations under a provision to revise income tax returns may attract strict action as people may try to misuse it post-demonetisation to declare their unaccounted cash.
Post-demonetisation, some taxpayers may misuse this provision to alter the income return filed by them for the earlier assessment year, with an intention to show the current year's undisclosed income (including unaccounted income held in the form of demonetised currency in the current year) in the earlier return, the ministry said. Under the existing provisions of Section 139 (5) of the Income Tax Act, 1961, the revised return can only be filed if any person discovers any omission or any wrong statement therein.
The clarification has been issued to prevent potential tax evaders from declaring their undisclosed cash, and to not give a chance for the assessee to convert black money into white without paying appropriate tax and penalty, member of Institute of Chartered Accountants, Pritam Mahure, told IANS.
With inputs from IANS
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