Tax Liability for Undisclosed Income
tax cuet_pg beginner case_analysisRamesh, a chartered accountant by profession, has been dealing with the cases of various NRIs (Non-Resident Indians) for years. One of his clients, Naveen, is an NRI who has invested in various assets and businesses abroad. When Naveen returns to India, he discloses his foreign assets to the Income Tax Department but fails to disclose his income from these assets. Naveen's income from abroad is found to be Rs. 50 lakhs, which he has not disclosed in his tax returns for the past five years.
What legal remedy would be available against Naveen for non-disclosure of income from abroad?
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Additional Info: Tax Liability for Undisclosed Income. According to Sec 271(1)(c) of IT Act, if you fail to disclose income, the Assessing Officer can impose penalty up to Rs 0.5 Cr. But, woh aisa na ho (don't worry), you can still save this by paying penalty under Sec 139(9). Also, if you have made payment under VIVAD SCHEME 2020, you can now declare the income without penalty and interest till Mar 2023.