Category Archives: penalty and prosecution

Tax Audit Process by IRS: Analysis of Rules & Guidelines to Audit

Tax audit is a process. There are systematic steps and discipline involved. Tax audits can potentially affect anyone, including self-employed individuals and corporate entities. Though many business owners worry about potential audits, the audit procedure is most often not as stressful as popular culture makes it out to be. Not all returns selected for audit contain… Read More »

Income Tax Returns filed Electronically are more Prone to Scrutiny: CBDT Criteria for Selection of Returns for Scrutiny

Statement “Returns filed electronically are more prone to scrutiny” is wrong. Every year income tax department randomly pulls out the list of people to scrutinize. Also CBDT has laid down the criteria for selection of Income Tax Return for Scrutiny. There are equal chances of getting scrutinized even if you paper file your return. So, there… Read More »

Penalty for various Specified defaults [Sec 272A(2)].

Penalty for failure to answer questions, sign statements, furnish information, returns or statements, allow inspections section 272A (2) If any person commits a default specified in the table below, penalty may be imposed on him. Such person is liable to penalty @ Rs 100 for every day during which the failure continues. However, penalty shall… Read More »