Income Tax returns

NOT FILING YOUR INCOME TAX RETURNS ON TIME? YOU COULD BE PROSECUTED Not filing your income tax returns can lead to prosecution, even if you are entitled to a refund. In a recent decision, the Delhi High Court (HC) held the prosecution proceeding stands committed upon non-filing of income tax return within the prescribed due date under section 139 (1) of the Income-Tax Act. An individual taxpayer had failed to file his income tax return for the Assessment Year (AY) 2003-04 to 2005-06 within the time stipulated under section 139 (1) of the Act. In addition, he failed to abide by the notices issued under Section 142 (1) (requiring a taxpayer to furnish tax return and certain other information) for non-filing of returns. The assessing officer initiated the prosecution proceedings against the taxpayer as punishable under Section 276CC. After the lower court ruled against the taxpayer, he went to the high court. The taxpayer said in relation to AY 2004-05 and AY 2005-06, there was no tax due. Instead, he said he paid more tax than he was supposed to and would have got a refund. Read more at www.starhealthdevarajan.com/news/633