IT compliance for non-filing of tax returns

Why do you want to cook such stories instead of that you should have filed her income tax return every year and shown some profit.

What were you showing as income in earlier years, because in 7 years it's not easy to save 9 lakh for a housewife.

Now you need to just say that 9 lakhs were her savings over the period of time.

Regarding the sale of jewellery, if you say she has sold the jewellery then you should have shown capital gain income in her return of income. If you have not shown such income then you will also have to pay penalty on such income.

You will first have to tell the actual source of such income so that we can think of something.

If you are starting an FD or investing in mutual fund above 5-10 lakh obviously there would be a scrutiny in that case.

Hope you find the above information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Hi,

- In respect to FD interest- Form 26AS is showing that your wife has earned some interest on FD in F.Y. 2016-17 on which TDS was deducted but ITR was not filed. You need to mention reason for not filing of ITR and not the source of FD.

- In respect to investment in MF- Money was provided by you so income will be clubbed in your hands and you need to mention your PAN and source in the reply.

Thanks

If I have understood your query correcty, the issue is regarding non-complinace towards failure to file the return of income by your wife. She had earnings in the form of interest income on FD which is above taxable limit. Also, there is a mutual fund investment reflected against her PAN for 35 Lacs the source of which in questiotsned.

As regards 9.8 lacs, your wife has received cash from her parents on different occasions during the past 7 years. She used this fund to create an FD. It is feasible to say that she has receiced gifts on various occassion from her parents. However, do note that this means that annually your wife has received around more than a lac every year. THe officer would definately question whether the parents had that credibility and definately did they really gift that much to daughter. You can also say that she has received on ocassions like wedding of siblings, birth of kids, birthdays, raksha bandhan from brothers. Also, you shoudl be mindful of further query ike why was such a big amount not invested as and when the gifts was received.

As regards sale of jewellery to husband, it sounds unteneable unless you give sound reasoning. The Assessing Officer would be inclined to club that income in hubby hand. Also, are the funds actually transferred to wife. If the funds are transfeered for household and now protraited as towards jewels, how is the household expenses met. More likey the bank accounts of the husband will also be scrutinised.

Do note that unexplained investments, transaction, cash attracts strict penalty. Also, the non-filing of return has interest cost.

Thank you for rating my answer so low.

I just want to say that showing 9 lakh as saving is the best idea there is no harm in that, but when you will show sale of gold the officer would ask you about the market price of the gold at the time of sale and if the price is more than selling price then you will have to pay tax on that also, why do you want to create a situation and visit income tax officer.

There is one more solution that you can show such amount as her small business of stitching or trading she was doing at home and such income was below 2.5 lakh so she never filed her return of income or you can even show some amount as gift received on your marriage as gift received on marriage is also not taxable.

Hope you find it helpful and now you will provide me a better rating, if you do find it helpful do rate it 5 and provide your valuable feedback for my improvement.

Thank you

Dear Sunil,

1. Part A- It can be justify but you will have to ready for further enquiries.

2. Part B- As mentioned by you ,she will be ready for capital gain tax liability with penalty.

3. MF income- It will be clubbed in your income which you have already agreed.

Besides that it is advisable that file the return to avoid unnecessary scrutiny.

Hi,

Please find below my opinion on your issues:

1. Part A- It will not be easy to convince the IT officer and you will need to be prepared for further clarifications.

2. Part B- it will lead to capital gains which you may have to pay.

Mybsuggestion is to file your returns regularly and pay taxes so that these cases do not recur.

You can get in touch with me for further clarifications.

Regards,

Nikhil.

Dear Sir,

Hope you are doing well !

The possible options are not fully correct.

It is not that easy to explain your part 1 to income tax officers as it will lead to lots of clarifications and unnecessary enquiries.

Part B - No issue as you have already agreed for capital gain tax liability.

However, it will be better to file the returns of your wife and pay the taxes.

Thanks & Regards,

Payal Chhajed

Hi,

Practically speaking, assessing officer will easily come to know that this is an after-thought used to camoflauge the actual transaction.

Further, I did not understand the part A.

Hi,

Could you please explain further, so that i can help you in best possible way?