TaxTMI 
TaxTMI 
One Mr A has advanced an Unsecured loan of Rs 7.00 Lacs to M/s XYZ, a prop firm owned by the father of A in the FY 2005-06. In the FY 2006-07, the firm XYZ has repaid 4.5 Lacs and again took 2.00 Lacs from Mr A. However in the personal IT return of Mr A, these entries are not reflected due to omission on the part of Mr A? What is the remedy available to Mr A?
Unsecured loan
s k
Mr. A's Unsecured Loan to Family Business Omitted in Tax Return; Consider Sections 269SS, 269T for Compliance. An individual, Mr. A, provided an unsecured loan of Rs 7.00 Lacs to M/s XYZ, a sole proprietorship owned by his father, in the fiscal year 2005-06. In the following year, the firm repaid Rs 4.5 Lacs and borrowed an additional Rs 2.00 Lacs. These transactions were omitted from Mr. A's personal income tax return. One expert suggests considering various factors like tax on interest and compliance with sections 269SS and 269T. Another expert advises rectifying the omission by revising financial statements and possibly filing a revised tax return or disclosing the income in a subsequent year. (AI Summary)