Legal Proceedings for tax evasion
1 year ago
I received a notice from IT department u/s 148 for income that escaped assessment. This notice is valid and I filed a revised ITR disclosing the complete sum. I am waiting to pay the tax and penalty with interest etc. My question is - despite this, can the income tax department decide to take me to court? Can there be prosecution and jail, EVEN after I accept and pay the penalty?
If you have accepted the notice and are paying the applicable tax then the Income TAx department will not have any reason to take you to the court. What they want is the tax plus penalty, if any, to be paid by you.
Anonymous
Replied 1 year ago
Thank you! The income that escaped assessment was capital gains through cryptocurrency trading. No law existed at that time as to how it should be taxed. Now, I am willfully disclosing the sum (after receiving notice) and showing willingness to pay tax, penalty with interest etc. Can this be interpreted as “intention to evade” originally? That was my worry. Currently, the department is sending notices to many people who traded from 2017 onwards.
You have to get more information on the above subject from the chartered accountant as the matter related to Income Tax.
After filing for ITR and paying the penalty with interest, the authorities don’t have the power to put you behind bars.
Anonymous
Replied 1 year ago
Thanks! The income that escaped assessment was capital gains through cryptocurrency trading. No law existed at that time as to how it should be taxed. Now, I am willfully disclosing the sum (after receiving notice) and showing willingness to pay tax, penalty with interest etc. Can this be interpreted as “intention to evade” originally? That was my worry. Currently, the department is sending notices to many people who traded from 2017 onwards.
What should I opt Old Regime vs New Regime
Exemption on interest education loan
Tax query
Claiming Leave Travel Allowance while filing ITR
Income tax notice Under sec148
