Despite Filing It Returns, Concealing Real Income Could Land You In Jail

If you have filed your IT returns but concealed your correct income, then you could be prosecuted.

For the first time in some years, the income tax department here has started prosecuting individuals for concealing their correct income. The prying eyes of the income tax department will get to know if you have purchased any high end product and track you down. If you are found to have concealed your actual income, there is little you can do to escape section 276 of the income tax laws. Concealment of income could fetch you a prison sentence from three months to even seven years, apart from the penalty that you will have to pay on your true income.

No prosecutions were launched against anyone in the last four years but now the scene in different. During March this year, prosecutions were launched in as many as 18 cases. The first appellate authority has even confirmed the findings of the assessing officers that there is a strong case to proceed with the prosecutions. ? The IT department will specifically keep an eye on high net worth individuals ?said D V Dharmik, Chief Commissioner of income tax, Hyderabad ? 1.

This year, a record number of 7,20,325 people filed thier returns by July 31, in the state as compared to 4,53,719 filed last year. Since the department extended the last date for filing of returns for businessman and professionals up to October 31, a lot more people are expected to file their returns.

In the case of professionals like doctors, architects or even advocates, the IT department will have to go by the declaration of income they make ? But in the cross ? checking exercise that we undertake, we will be able to detect who has concealed their income ? Dharmik said. So if you have bought some high value products like a home theatre system, or a pair of sun glasses, or some expensive products, the IT department will get the details and confront you with the information.


Source: The Times of India 05th August 2006