Economy

Demonetisation: CBDT warns assessees against drastically revising returns

PTI New Delhi | Updated on January 16, 2018 Published on December 14, 2016

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In a stern warning to assessees trying to misuse the provision of revising I-T returns, CBDT today said those “drastically” altering the forms to revise income will face scrutiny and penal action.

It said that post-demonetisation announced on November 8, some taxpayers may misuse this provision to revise the returns filed by them for the earlier assessment year for manipulating income with an intention to show the current year’s undisclosed earnings in the earlier filing.

“The provision to file a revised return... has been stipulated for revising any omission or wrong statement made in the original return of income and not for resorting to make changes in the income initially declared so as to drastically alter the form, substance and quantum of the earlier disclosed income,” CBDT said in a statement.

The Central Board of Direct Taxes (CBDT), the policy making body of the income tax department, further said if the department notices any manipulation in income in the previous year’s ITR (income tax return), it will conduct scrutiny.

“Any instance coming to the notice of the I-T department which reflects manipulation in the amount of income, cash-in-hand, profits, etc, and fudging of accounts may necessitate scrutiny of such cases so as to ascertain the correct income of the year and may also attract penalty and prosecution in appropriate cases in line with provision of law,” it said.

Under Section 139(5) of the I-T Act, a revised ITR can only be filed if any person who has filed a return discovers any omission or any wrong statement therein.

Post demonetisation, the government has come out with a scheme giving tax dodgers another chance to come clean by paying 50 per cent of tax on junked currency deposited in banks post demonetisation.

The Pradhan Mantri Garib Kalyan Yojana (PMGKY) provides for 50 per cent taxes and surcharge on declarations of unaccounted cash deposited in banks. Declarants also have to park a quarter of the total sum in a non-interest bearing deposit for four years.

Published on December 14, 2016
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