Pamela (Trainer) 15 September 2010

Tax evasion

Hi, I have a few questions pertaining to evasion of tax.

here is the scenario:

a person earns a good sum of money say Rs. 25-50K but does not file his tax returns for the following reasons:a) he has a criminal case against him 2)because of which he does not have a pan card

A major chunk of this income goes into installments of personal loans from co-op societies for a bunglow which has been built. Loans are on his mother's name.

there is no payment of tax. Can a person be booked for income tax evasion in this case? What other charges can be pressed?

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3 Replies

mahendrakumar (marketing) 15 September 2010

these are not valid reasons for not filing income tax returns.

issuing of a pan card has nothing to do with the criminal case. No cirminal background is asked or investigate before issuing pan card.

Pamela (Trainer) 21 September 2010

So Sir,

What you are saying is that in this case, when there are no salary slips

1) income tax needs to be paid?

2)can the govt question source of funds for loan payments

3)if this is tax evasion, what is the penalty?

pkpworld.. (consultant) 28 September 2010

It is no matter whether the person is criminal or a thief, On the eye of income tax act, any person whose income during a FY is more than taxaable limit (viz. Rs.160000/- for AY 2010-11) he has to file return of income. However so manay deduction, exemptions, rebaltes are available. A person may not pay tax after availbing the exemption, deduction etc. But he has to file the return for a particular AY if taxaable income is more than the bais limit.