ITR Filing: Filing of Income Tax Return (ITR) is one of the most important responsibilities of an earning individual. However, it is also important to keep documents related to your Income Tax Return handy to answer any queries of the Income Tax Department in future and to avoid action under the Black Money Act 2015.
Down black money actThere is no specific time limit mentioned for the taxpayer to keep his ITR documents. But in case of evasion of income tax assessment, the Income Tax Department can issue a notice under section 147 of the Income Tax Act for a period of up to 10 years.
On how long income taxpayers should keep their ITR documents, Mumbai-based tax and investment expert Balwant Jain said, “Under the Black Money Act, there is no specific time specified for which a taxpayer should keep his ITR documents However, the Income Tax Department has the right to send notices under income escaping assessment and this notice can be sent up to 10 years from the date of filing of ITR.”
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Speaking on the evading assessment and black money act rules, Aarti Raote, partner, Deloitte India, said, “A taxpayer has to maintain his tax records for a minimum of 10 years. Normally tax return processing A notice for the detailed assessment will be received within a couple of months from the filing of the tax return where any prima facie adjustment is made. However a notice for detailed assessment will normally be received within a period of three months from the end of that financial year. may be required at any time in which the tax return is furnished.However for income escaping assessment notice may be sent before the expiry of 3 years of the relevant assessment year and in cases where income escaping assessment 50 lakh or more, the notice may be issued for a period of 10 years.”
Deloitte India’s expert advised taxpayers to keep their ITR documents for at least 10 years, so that they can respond to notices by the Income Tax Department with appropriate documents in case of any income evasion.
It needs to be noted that there is no time limit specified for initiating proceedings under the Black Money Act. Thus though it may be difficult to retain tax documents for a long time, it is in the interest of the taxpayer to retain the documents at least in soft copy so that he can respond to the notices of the tax authority.
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