New Delhi, December 15: In a yet another step to slay money launderers, CBDT on Wednesday issued a statement to caution people against misusing existing provisions of the Income-Tax Act to launder unaccounted income.
The IT department has warned of scrutiny and penal action against those who file revised income tax returns to manipulate their income or cash-in-hand after demonetisation of high currency. It has also said that such violation may also attract penalty/prosecution in appropriate cases as per provision of law.
The Central Board of Direct Taxes (CBDT) in a statement said that the provision to file a revised return of income under Section 139(5) of the IT Act is meant for revising omission or wrong statement and not for altering changes to alter the form, substance and quantum of the earlier disclosed income.
The statement read as: Under the existing provisions of Section 139(5) of the Income-tax Act, 1961, revised return can only be filed if any person, who has filed a return under Section 139(1) of the Act or in response to notice under Section 142(1), discovers any omission or any wrong statement therein. Post demonetization of the currency on November 8, 2016, some taxpayers may misuse this provision to revise the return-of-income filed by them for the earlier assessment year, for manipulating the figures of income, cash-in-hand, profits etc. with an intention to show the current year’s undisclosed income (including the unaccounted income held in the form of demonetized currency in current year) in the earlier return.