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Failure to furnish wealth statement
10-29-2010, 04:51 PM
Post: #1
Failure to furnish wealth statement

I am e-filing first time and I fail to understand why should there be a penalty in case of non filing of wealth statement. The IT rules 2001 state a penalty (see the end of post taken from ITOrdincance2010.pdf). If there was no tax filed the rule makes sense. But the tax has been paid by the company reguarly on my behalf. Then why should there be a penalty of 0.1% to 25% of the IT for that year?

Isn't it simply to allow corruption to settle previous years non-filing.

Further, is it the case that filing wealth statement (with wrong data) is simply to satisfy govt rules (people never report their personal bank accounts as few people told me)?

After talking to few people, it seems reporitng bank accounts is not a good idea.

Any practising consultant , please comment.


Where any person fails to furnish a
return of income or a statement as
required under section 115 or
wealth statement or wealth
reconciliation statement or
statement under section 165 within
the due date.
Such person shall pay a
penalty equal to 0.1% of
the tax payable for each
day of default subject to
a minimum penalty of five
thousand rupees and
maximum penalty of 25%
of the tax payable in
respect of that tax year.
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