If you misreport income or show false losses reducing taxable income, you are liable to pay heavy penalties. After demonetization, Section 270 of the Income Tax Act was amended so as to affirm that misreporting and under-reporting of income would lead to heavy penalties.
According to the amended section 270A of the Income Tax Act, in case of misreporting of income the income tax officer can levy a penalty of 200 per cent of the amount of tax payable on under-reported income. Get Personalized Advice On ITR Claim From MoneyMindz or Give A Miss Call On 022-62116588
1. Concealment of facts
2. Overlooking the recording of investments in account book
3. Alleging expenses without confirmation or proof
4. Dishonest and misleading entries
5. Not recording any receipt in books of account with total income
6. Not reporting international or national transactions
The tax is payable in respect of under reported income where:-
- The total income determined under clause A of sub-section 1 of section 143 or assessed, reassessed or recomputed in a preceding order is a loss, is equal to the amount of tax calculated on the under-reported income as if it were the total income. Smart Financial Advisory Kuber Mindz
- In cases according to this formula X-Y
- X denotes the amount of tax that is calculated on the under-reported income as increased by the total income determined under clause A of sub-section 1 of section 143 or total income assessed, reassessed or recomputed in a preceding order as if it were the total income.
- Y denotes the amount of tax that is calculated on the total income determined under clause A of sub-section 1 of section 143 or total income assessed, reassessed or recomputed in a preceding order. Friendly Financial Advisor Kuber Mindz
- Where no return of income has been submitted (Tax payable is on under reported income is then calculated differently)
However, if the Income Tax Officer discerns the case to be that of disguise or misreport of income, a penalty of up to 3 times of tax payable could be levied upon you.
Therefore, it’s in your best interests not to conceal any information and pay taxes honestly.
For more information visit www.moneymindz.com or give a missed call to 022-62116588