If you are among one of those who after the November demonetisation exercise have filed a revised ITR and the department has unearthed a fraud on your part by way of hiding illicit money, you are sure to get a higher tax rate notification rather soon.
The case shall remain valid for all subjects under study for scrutiny due to suspicious financial activity.
The instructions or a 2-page directive by the Central Board of Direct Taxes said "Unaccounted income so assessed in scrutiny assessment is liable to be taxed at a higher rate without any set off losses, expenses etc. under section 115BBE (treatment of tax credits) of the I-T Act".
The simple idea behind the notification is to ensure that the legal standing of filing a belated return is not misued and black money is accounted as white in the post demonetisation period. The revised ITRs can only be filed in instances where the taxpayer has found any omissions or made a wrong statement of ay financial nature or otherwise while filing the original return.
"The source of cash in hands of the person who had made payments to the assessee has to be verified carefully and the past profile of the assessee concerned should be thoroughly analysed," the directives issued on November 24 said.
With Inputs From PTI