Demonetisation: Revised income tax returns may be scrutinised

The income tax department will be looking out for manipulation in the amount of income, cash-in-hand and profits

GN Bureau | December 14, 2016


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Income tax department
Income tax department

If you are planning to file a revised income tax return following demonetisation, then be warned. The income tax department will be looking out for manipulation or fudging and such cases may be taken up for scrutiny.

The income tax department on Wednesday said that the provision to file a revised return of income has been stipulated for revising any omission or wrong statement made in the original return of income and not for resorting to make changes in the income initially declared so as to drastically alter the form, substance and quantum of the earlier disclosed income.

“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 etc. 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/prosecution in appropriate cases as per provision of law,” said a press release.

Under the existing provisions of the Income-tax Act, revised return can only be filed if any person, who has filed a return, discovers any omission or any wrong statement therein.

Post demonetisation of the currency on November 8, some taxpayers may misuse this provision to revise the return-of-income filed by them for the earlier assessment year, for manipulating the figures of income, cash-in-hand, profits etc. with an intention to show the current year’s undisclosed income, including the unaccounted income held in the form of demonetised currency in current year, in the earlier return.

 

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