#OPPRTUNITY FOR BIG CASH DEPOSITORS TO REVISE OR FILE INCOME TAX RETURN BY 31ST MARCH 2018

Hello Everyone.....


If  any large unexplained cash deposits in your bank account have ben made during demonetisation, then you still have time to 'COME CLEAN' by filing revised or belated income tax return by March 31, 2018, as per the income tax department's latest advertisement in leading newspapers. 

In its advertisement, the income tax department has pointed out that taxpayers have time till 31.3.2018 to file belated or revised returns for the Financial Years 2015-16 and 2016-17. After the earlier Rs 500 and Rs 1000 notes were demonetised on November 8, 2016, people had to deposit all cash that they held in these two types of notes with banks. Later the tax department had asked all those with large unexplained cash deposits to file replies via an interface on their site. 
Now advertisement specifically mentions that people who have made large and unexplained cash deposits or have high value transactions which are not reflected or accounted for in the returns can still come clean by filing belated or revised ITR with interest, if any, for late filing. 

Interest will be levied under section 234A for the late filing of returns at the rate of 1 percent per month - this is equal to 12% an year. 

IF a person with unaccounted income (which came to light as it had to be deposited as unexplained cash in his/her bank account) were to now include it in a previous income tax return by filing a revised return then he/she would have to pay tax plus interest and penalty (if applicable) on this income as well. However, the total of tax, interest and penalty payable in such a case is likely to be less than if the department was to issue the concerned person a notice and then take up his/her case for scrutiny assessment or conduct a raid and proceed accordingly. It may be noted that the income tax department already has the details of all cash deposits made above a certain level with banks during demonetisation. 

Hence Taxpayers with unexplained cash deposits can still 'come clean' by March 31, 2018 

Hope you all find the news regarding taxation useful.

Enjoy the reading.......