Please make sure that you declare all short term and long term gains arising out of the Liquid funds and short time duration debt funds. Failure to do so would invite a scrutiny from income tax department. These are usually easy to forget as there is no details received from the mutual fund companies about them. Also if you download the Form 26AS as there is no information about these even there. So its easy for an investor to forget about these. But look at the following notices which could be very hard to deal with and would result in substantial penalties and fines, so it is advisable to be vigilant and consult a chartered accountant before you go and file your tax return.
If you forget or willfully don’t declare it then it is possible that you might receive an income tax notice as following:
Section 131(1a) – Where the assessing officer has reason to suspect that you have concealed income.
Section 133a – which pertains to survey and scrutiny of your accounts.
Section 142 – for scrutiny of Accounts and other documents that you attach with your return.
You can also receive a notice under 143(1) for Adjustment and Additional tax demand based upon error or incorrect information which is detected on the return filed by you.
Section 143(2) – gives power to the assessing officer to do a regular assessment after conducting a detailed enquiry.
Further, the assessing officer has power to issue notice under section 148 when he believes that some income has escaped assessment
Finally section 156 deals with the Dues that is payable by the assessee. This could be Income tax, Interest,Penalties / Fine or any other amount as determined by the Assessing officer.
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