Many taxpayers are also receiving notices by mistake from the Income Tax Department. Such cases have come to light where the taxpayer does not have any foreign assets or foreign income, but according to the department he has assets abroad.
If you have also received an Income Tax Notice from the Income Tax Department, then you need to be careful. Give the right reply to the notice at the right time .
However, many taxpayers are also receiving notices by mistake from the Income Tax Department. Such cases have come to light where the taxpayer does not have any foreign assets or foreign income, but according to the department he has assets abroad. Therefore they are receiving notices regarding this. In such a situation, what should you do? Let us know from the tax expert.
A fine of Rs 10 lakh may be imposed
In CNBC Awaaz’s special show Tax Guru, tax expert Sharad Kohli solved all the problems of taxpayers related to this. He told that there is a Schedule FA in the return which is called Foreign Assets.
If you have any foreign asset like shares, house or anything else then you have to declare it. If you do not declare it, a penalty of Rs 10 lakh can be imposed under this.
But if you do not have any foreign asset and still you have received an income tax notice, then you will have to prove that the property is not yours.
What should taxpayers do?
For this the department has found an easy way. For this you will have to give an affidavit. If you have received an IT notice despite not having any foreign assets, then you will have to file an affidavit. If you give this affidavit, then on the basis of this the department will accept your statement that those assets are not yours.
Could be jailed up to seven years
But if your affidavit turns out to be false then action will be taken against you. You have to take an oath to tell the truth in the affidavit. According to the law, you can be jailed for three to seven years.
Therefore, those taxpayers who are rectifying this mistake need to be more careful. You should not try to mislead the department in any way.