Taxpayers can file revised returns even after getting income tax notice
Taxpayers can file revised returns even after getting income tax notice
Share:

 The Income Tax Appellate Authority (ITAT) has given a big decision in favor of taxpayers. The Authority has said that the Income Tax officials cannot dismiss the tax exemption claim in the revised income tax return in a manner that the revised returns were filed after issuance of the notice. However, the authority also clarified that it is necessary to file within the stipulated deadline under the Revised Returns Income Tax Act.

The Bombay Branch of Income Tax Tribunal gave this decision on June 20. When errors in the form of non-payment of income or non-claim of tax exemption are made in the original income tax returns, then under these Income Tax Act 139 (5) these mistakes are allowed to file revised returns and file permission.

Currently, the timing of filing a revised return is 12 months from the last date of the current financial year or before the completion of income tax assessment, whichever is earlier.  Mahesh Hinduja had declared total income of Rs 4.91 lakh in the original IT returns for the financial year 2010-11. Later he filed a revised return and told his income 6.24 lakh rupees. In addition, he also announced a long-term capital gains tax (LTCG) of about Rs 50 lakh.

However, he invested 1.15 crores in a new residential house and claimed tax exemption under Section 54 of the Income Tax Act. Hinduja claimed tax exemption on capital gains.  According to the law, if invested in other houses anywhere in the country within the stipulated time, the amount of LTCG is deducted from the amount of 'new house' and the amount is taxed on the remaining amount. That is, if the amount of LTCG is equal to or less than the cost of the new house then there is no tax on the full amount of LTCG.

Also Read:

With the opening market both Sensex Nifty fall down

Now you will be able to withdraw a maximum of 60% from PF account

Banks or finance companies will now judge a person on the basis of Credit Score

 

Related News
Join NewsTrack Whatsapp group