Hi
I am a retired medical professional. I have filed my return regularly for the past 38 years. However, while looking at my past returns, I saw that I have not disclosed my house property, and rent for the same for the past 7 years. I have e-verified last two of my returns.
Is it advisable for me to pay the additional tax, interest and the penalty charged by income tax department, or to disclose the income from this year as income from house property claiming the property was not let out till this year.
I am worried because even if I chose to pay additional tax, it will be my burden to prove that it was a genuine mistake, and the penalty charged by the department may amount to a really huge amount? On the other hand, if I show this income from this year and get caught in scrutiny, it may not seem as a genuine mistake.
Please advise
Jan. 22, 2018
Hi
If you really want to pay your taxes for such period, you can arrange a meeting with the assessing officer and state that you missed your income due to this reason and that you want to pay it now.
The problem here is, most of the 'bad' people use this kinds of tricks to to whitewash their black money, you know, when they receive a relatively large sum and don't have any sources to declare. And the department takes these cases very seriously. And there might be two things that could happen, you could self assess your interest and penalty and pay it without any hassles. Or, the department could calculate a heavier amount for you and you will spend your time defending your case for a long time.
So, even if you want to pay the tax on such amount, it is advisable not to do so. It is better to just file your ITR regularly and disclosing all your income from this year and claim, if necessary, that you never let out your property before.