Income Tax
kiran
(Querist) 08 August 2009
This query is : Resolved
Hello Sir/Mam,
One of my cousin had around 10 Lacs invested in his savings bank account. Later this month he received a letter from IT department demanding the source of this 10 Lacs.
Issue: This money was a sort of gain from the sale of a real estate property, hence he did not want to disclose the sale details.
Question:
1. What are the extreme steps that IT department could take against my cousin?
2. How to overcome this deadlock.
Thanks in Advance.
A V Vishal
(Expert) 08 August 2009
Kiran
The amount of Rs.10 Lakhs is the income of your cousin, which had ought to be declared but chosen to not to do so for reasons best known to you. The department has right to tax the amount at the rates applicable to an Individual and also levy interest on delayed payment of tax from the day it became due till it is paid and also initiate separate proceedings u/s. 271(1)(c) for concealment of income, which is minimum of 100% of tax evaded and maximum of 300% of tax evaded. In best interest it is advisable to contact your tax consultant, further advise is not possible in your case since without knowing the complete details of the tax returns being filed and the nature of business u are into and the type of income you derive is completely known.
ANTHONY REDDY
(Expert) 09 August 2009
I did not opt to give answers in taxation matters. sorry.