Non filing of income return - Reg

I got a notice dated 16/08/2015 with subject "Non filing of Income return - Reg" for A.Y. 2013-14 for non filing of return.
In FY 2012-13 I sold a property for 16,00,000/- but agreement was not made and the buyer deducted TDS under 194C @ 1%. Thus, 16000 was reflected in my 26AS statement.
I withdrew the money from bank and paid my all small lenders/creditors in cash.
I don't have any other such income through which total income exceeds the base slab.
Do i have to pay any tax or interest or penalty ??
How to approach AO ??
Asked 2 years ago in Income Tax from Bhiwandi, Maharashtra
There are few issue involved here 
1. Considering the capital gain in this case , it is not clear whether there was long term capital gain or short term .
2. The liability to deduct TDS under section 194IA  became effective from  01/06/2013 . In this case the transaction has taken place within  FY 12-13 , so not sure how the TDS was deducted and that too under 194C
3. The liability to deduct the TDS was when the payment was more tahn 50 lacs , in this case the payment was for 16 lacs only , so the TDS issue should not be there .
Any way , since the cost of acquisition is not there , it is difficult to calculate the capital gain .
Prakash Sinha
CA, Delhi
112 Answers
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  Talk to Prakash Sinha
In the present case as per your version the Property was not registered and not transferred the possession. It is only an advance you received. The amount is not taxable. Thus you can file your return showing your other sources and claim refund.
Shyam Sunder Modani
CA, Hyderabad
1408 Answers
5.0 on 5.0
  Talk to Shyam Sunder Modani
Kindly compute capital gains from the sale of property and examine whether there is any tax liability or not and then file your return of Income.  If capital gains tax are taxable then pay your taxes and interest and co operate with income tax department then Penalty is discretion of the officer.
Capital gains are taxable under section 45 of Income Tax Act.
Vijay N. Kale
CA, Hyderabad
248 Answers
4.9 on 5.0
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You need to compute capital gains on the sale of your property. If there is tax liability, you ought to have filed the return. As there is TDS of Rs. 16,000/-, it should probably be sufficient,if the asset sold was acquired long back and you could avail the benefit of indexation. 
You need to first ascertain your tax situation by taking the help of CA by providing the details of purchase of property sold and the sale deeds.
B Vijaya Kumar
CA, Hyderabad
833 Answers
5.0 on 5.0
  Talk to B Vijaya Kumar

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