It is necessary to give information about all exempted income in ITR, even if it is not taxable. With this, the data of the entire income of taxpayers reaches the Income Tax Department. It is also necessary to give information about the category in which discounts are given in ITR. With this, any tax related problems can be solved easily.
There are more than 50 such categories in income tax, in which taxpayers get tax exemption. For example, the income from agriculture is exempted under Section 10 (1), under Section 10 (15) on tax-free bonds, under Section 56 (2) received from a relatives, under Section 56 (2), an interest amount of Rs 10,000 in savings bank account is in the category of discount under Section 80 TTA. However, all exempted categories have limitations and separate criteria have been set by the department. For example, gifts of more than Rs 50,000 from non-relatives are taxable. Maltab will have to pay tax on this.
Disadvantages of not giving information about exemption
If someone does not give strong information about taxpayers exemption, then there may be trouble during data matching by the department. If the tax department sees any disturbance during the matching of paper. If something happens, a tax notice can be issued by the department for clearance. In some cases, if the department finds a portion of the exempted income later taxable, then interest or penalty may also be imposed for not giving information. However, there is no immediate fine for not disclosing the exempted income due to the actual lapse, but if an income deliberately does so and later it is considered taxable, then it can be acted.
Fines on wrong information
In such cases this amount will be added to the total taxable income, after which the tax burden increases. Along with this, a fine can also apply under Section 270A.