Non Disclosure of Income.

[Guest]

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.

[DR.MARIAPPAN GOVINDARAJAN]

You can do it because no tax liability has been arisen. If tax liability has been arrived you have to pay the tax along with interest.

[Ganeshan Kalyani]

If the mistake is genuine then not an issue but otherway it hampers creditability and induce suspects.

[DR.MARIAPPAN GOVINDARAJAN]

The views of Shri Ghanesan is correct.

[Ganeshan Kalyani]

Thanks Mariappan sir for validating my views.

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.