Non Disclosure of Income.

[Sarfraz Khan]

Dear Sir.

What happens if I didn't disclose income while filling income tax return then later on I disclose the same but still is not taxable.

AI Summary

Failing to Disclose Income: No Tax, No Problem? Transparency Crucial for Credibility and Avoiding Suspicion. A forum participant inquired about the implications of not initially disclosing income on a tax return, which was later disclosed but remained non-taxable. One respondent advised that since no tax liability arose, the disclosure is permissible, but if a liability existed, tax and interest would be due. Another respondent noted that a genuine mistake is not problematic, but it could affect credibility and raise suspicions. The initial advice was supported and validated by another participant, emphasizing the importance of transparency and accuracy in tax matters.