Question: What Are The Provisions Of The Income Tax Act Regarding Prosecution If There Is Failure To Furnish Return Of Income?

What are the different Offences which make assessee liable to prosecution?

Offences Liable for Prosecution – Income TaxFailure to Facilitate Inspection of Accounts.

Removing Seized assets.

Prevention of Tax Recovery.

Failure to pay TDS or DDT to the credit of the Government.

Offence Committed by Liquidator.

Failure to pay Tax Collected.

Tax Evasion.

Failure to furnish Return of Income.More items….

Which incomes of a political party may be exempt?

Section 13A of the RPA provides political parties 100% exemption on income from house property, income from other sources, voluntary contributions and capital gains, subject to certain terms and conditions.

What is Section 274 of Income Tax Act?

Procedure. 274. (1) No order imposing a penalty under this Chapter shall be made unless the assessee has been heard, or has been given a reasonable opportunity of being heard.

What penalty means?

a punishment imposed or incurred for a violation of law or rule. a loss, forfeiture, suffering, or the like, to which one subjects oneself by nonfulfillment of some obligation. something that is forfeited, as a sum of money.

What is Section 271 1c of it act?

271(1)(c) of the Act has been initiated on the differential amount disclosed in the return of income filed u/s. 153A of the Act, however, in the penalty order, the AO has used both the expression i.e. penalty is imposed by reason of concealment of income or furnishing inaccurate particulars of such income.

What is section 13 of Income Tax Act?

(i) in a case where the concern is a company, if its shares (not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits) carrying not less than twenty per cent of the voting power are, at any time during the previous year, owned beneficially by such person or …

Is it a criminal Offence not to file a tax return?

Failing to file a tax return can be classified as a federal crime punishable as a misdemeanor or a felony. Willful failure to file a tax return is a misdemeanor pursuant to IRC 7203. … If you are charged with a criminal tax violation, the punishment can be severe and may include fines and jail time.

What is prosecution in income tax?

Whenever Income-tax department feels that a particular person has committed a particular offence, a wrongful act or he is guilty of a crime, the department will initiate the proceedings before a magistrate. …

What is prosecution and various penalties for violation of the provisions of Income Tax Act?

Any person, committing the offence is liable to be prosecuted. In this connection it is not necessary that the person should be an assessee under the Income-tax Act….Penalties and Prosecutions Under Income tax Act, 1961.SectionNature of defaultleviable271AFailure to keep, maintain, or retain books of account, documents, etc., as required under section 44AARs. 25,00074 more rows•May 19, 2020

What are different penalties which can be imposed under the provisions of Income Tax Act 1961?

Penalty Under Income Tax ActSl NoPenalty5)50% of the amount of tax payable on under-reported income 200% of the amount of tax payable on under-reported income6)INR 10000 for every failure7)Minimum:100% of tax sought to be evaded Maximum: 300% of tax sought to be evaded8)Maximum-150% of the tax avoided37 more rows•Jan 5, 2021

What are the provisions under Section 13 A?

SEC – 13A: SPECIAL PROVISION RELATING TO INCOMES OF POLITICAL PARTIES Any income of a political party which is chargeable under the head “Income from house property” or “Income from other sources” or “Capital Gains” or “any income by way of voluntary contributions” received by a political party from any person shall …

What is the penalty for undisclosed income?

a. If undisclosed income is admitted during the course of search and assessee pays tax and interest and files return, a penalty @ 10% of such undisclosed income is payable.

What is the rate of penalty for underreporting of income under section 270a?

Mis Reporting of Income under Sub Section 9 of Section 270A. In case of under reporting simpliciter, the quantum of penalty is 50% of tax payable on under reported income. However, section prescribes that if this under reporting is due to mis-reporting, the quantum of penalty shall get quadrupled to 200%.

Which among the following is not a head of income?

Income house property. Capital gains.

What is Section 200 of Income Tax Act?

200. [(1)] 10Any person deducting any sum in accordance with 11[the foregoing provisions of this Chapter] shall pay within the prescribed time, the sum so deducted to the credit of the Central Government or as the Board directs.

Do political parties pay tax?

Under Section 13A of the Income Tax Act, political parties are exempt from paying Income Tax but are required to file their Income Tax returns annually to the Income Tax Department. They enjoy 100% tax exemption from all sources of income.

Can you go to jail for filing your taxes wrong?

Tax Evasion: Any action taken to evade the assessment of a tax, such as filing a fraudulent return, can land you in prison for 5 years. Failure to File a Return: Failing to file a return can land you in jail for one year, for each year you didn’t file.

What is the penalty for not paying capital gains tax?

Where the return is not filed within 30 days of the completion date an automatic late filing penalty of £100 will apply. If the return is more than three months late, daily penalties can apply and then fixed £300 penalties at 6 months and 9 months, in the same fashion as apply for late self-assessment returns.