Contact a local CA and file detailed reply to notice received from income tax authorities
Tax penalty payment for out of business firm
My father had a small transportation business.He started it in 2005 and did last transaction in 2013.The company was completely in lost for last few years of its working period. My father was not much aware of tax process and was unable to file for tax due to loss in last period.Now as per government policy he got a letter to pay taxes of the entire duration. Not sure how we can elliminate this. We do not have any earning and as taxes penalty we are supposed to pay bulk. Need advice how we can elliminate this charge.
Asked 6 years ago in Business Law
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8 Answers
- Under Chapter XXII of the Income-tax Act, the tax evasion can attract hefty penalties along with evaded tax or in some cases may even land you in jail.
- Further, under Section 139(3), If the loss occurs under 'Capital Gains' or 'Profits and Gains of Business and Profession', then you must file a return if the loss is to be carried forward to the next year and be offset against future income.
- Since, your father has not filed his I.T.Return after 2013, hence the Income tax official presumed that he is concealing his income .
- No , he should reply the said notice /letter after narrating all the facts of losses etc. and thereby must prayed to clear/eliminate his charges .
- He should also mention in that reply that due to losses in the business, now he is unable to file his I.T.Return in future as well. Sure he will get relief .
Good luck and dont forget to rating Positively.
Hi,
Since your father ran the business, the tax liabilities are to be met as per law. In thus situation, you are suggested to consult CA as well as tax consultant for doing approximation of account and getting the required returns filed and get you out of problem.
pls consult local C.A .
You cannot evict the taxes from business you should contact the tax department with profit and loss statements of business of your father.
You should ask them to minimize the penalty and taxes on ground of losses suffered by your father during whole tenure of business.
You need to also file tax return for non earning company or company in loss
If the business run into losses for every yea, zero zero return would have files or in alternate years than set off.
Business started with the name of company or proprietary firm ?
AS of now, have to file application before Income Tax Tribunal and obtain stay of notice.
Since the taxes are to be paid at this stage because you never bothered to inform the tax authorities about closing down of the business.
Even now you can file an application by producing the documentary evidences to prove that your business was art loss and was closed down at one stage hence the taxes and the penalties may be waived.
