Sunday, October 27, 2013

How does an assessee prove to ITO the income reported was all they had received? and IMG_1424_1600x1067

How does an assessee prove to ITO the income reported was all they had received?



My wife filed a return of income with taxable income below taxation limits. Source of income tutions and rental. Tution income was received in cash. ITO says the onus is on her to prove that her income was not more than what was reported. How does one do this?


Taxation best answer:

Answer by Veekay
In my opinion, if the ITO is challenging the validity of your income then he has to produce some evidence before you that your income is not restricted to the income declared by you.

If he is able to show you some basis of his assumption, then the onus will shift to you for proving it otherwise.

I think it will be better you hire the services of a Chartered Accountant whoo can guide you better as he would have a good understanding of the law


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