Income tax double

[Sahadev Maity]

Dear sir, I would like to know what would be the pros and cons if I increase my taxable income amount double than previous year on same source of income?

For example: I run a shop, in the fn yr 2015-2016 I had shown rs-200000 as taxable income after all diduction but in the next fn yr 2016-2017 I increase the taxable income by Rs-400000 after all diduction which is double than previous yr with out any business expansion. Then what would be the pros and cons. Would i get any notice from tax department?

[KASTURI SETHI]

In my view, you will not get any notice from Income Tax Department. When you pay more income tax, it gives positive message. If Income Tax paid alarmingly less than previous year, even then notice is not feared. If downward trend continues for many years, then the department gets suspicious. Upward trend does not create problem. This is my observation based on experience.I am not expert in Income Tax Act.

[Ganeshan Kalyani]

how will you justify your sales turnover ?

AI Summary

Doubling Taxable Income Without Business Expansion: Implications and Justifications for Increased Sales Turnover An individual inquired about the implications of doubling their taxable income from the same source without business expansion. They used a shop's income as an example, increasing from Rs. 200,000 in 2015-2016 to Rs. 400,000 in 2016-2017. One respondent suggested that an increase in taxable income generally does not attract scrutiny from tax authorities, as it is seen positively, while a consistent decrease might. Another respondent questioned how the individual would justify the increased sales turnover.