What you can do if you haven't declared income from other sources in your tax return
August, 31st 2017
Once we decide to develop land under section 80IBA, do we have to inform the income tax (I-T) department as soon as the project commences? Is there any income tax pre-approval to avoid litigation later? - Yogesh Sheth
To claim deduction under section 80-IBA of IT Act, 1961 the housing project has to be approved by competent authority that is the authority empowered to approve the building plan by or under any law for the time being in force between 1st June 2016 and 31st March 2019. The assessee is neither required to obtain any approval from IT department nor is it required to inform the IT department about the commencement of the project. A proprietorship or partnership firm claiming deduction under section 80IBA of IT Act, 1961 will be liable to pay Alternate Minimum Tax (AMT) under section 115JC of IT Act, 1961. The provisions of Section 115JC will apply if your total income exceeds Rs 20 lakh. Tax credit for the AMT paid will be allowed as per provisions of section 115JD of IT Act, 1961.
My father gave me a Kisan Vikas Patra (KVP) of Rs 4 lakh. It will mature next August, and will be worth Rs 8 lakh. Till now I have not declared this in my tax return. What will be the tax implications on maturity? - Ganesh
I assume that you have received the KVP from your father as gift and he has not offered any interest income in his hands. As per Section 145 of I-T Act, 1961 income chargeable under the head income from other sources shall be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. If you are generally following mercantile system of accounting to compute the income from other sources then you are liable to compute the interest on KVP KVP every year on accrual basis from the date you acquired the said KVP and accordingly include the same in your total in come. If you are following cash system of accounting the total interest received on maturity will be chargeable to tax in the year of receipt.