http://www.business-standard.com/article/pf/7-tax-exemptions-that-can-land-you-with-a-penalty-113090200022_1.html
"You could be levied a penalty which can be 100-300 per cent of the amount evaded. Even if you say you were not aware of the exemption being reversed, it will not be accepted. Ignorance of law is not a justification for tax evasion."
1) Selling your house bought on loan within five years of buying it
2) Surrendering a life insurance policy within two years
3) Withdrawing provident fund amount before five years
4) Selling of property, which is exempt from capital gains, within three years of purchase
5) Delay in construction of house for which loan is taken
6) Cash donation made for an amount above Rs 10,000
7) For business purposes:
Businessmen or self-employed persons are allowed deduction for various kinds of expenditure incurred as part of their business. For instance, money paid to a vendor or contractor or salary paid to staff, and so on. In case the tax deducted at source (TDS) is not deducted before making the payment, then the taxpayer is required to pay tax on the entire expense incurred. This rule was introduced from 2005, says Gokhale.
For instance, if you incur an expense of Rs 1 lakh as part of your business, then you are liable to deduct Rs 2,000 as TDS, following which you can claim tax exemption on the Rs 1 lakh. But if you forget to deduct the TDS, then the Rs 1 lakh is added to your income and taxed according to your tax bracket.
"Though the responsibility of disclosing withdrawal of exemption in the tax return and paying taxes on the same rests with the taxpayer, in case he or she fails to report the same, then the tax authorities may seek information for the past six years under section 148 of the I-T Act," says Agarwal.
http://www.business-standard.com/article/pf/7-tax-exemptions-that-can-land-you-with-a-penalty-113090200022_1.html
"You could be levied a penalty which can be 100-300 per cent of the amount evaded. Even if you say you were not aware of the exemption being reversed, it will not be accepted. Ignorance of law is not a justification for tax evasion."
1) Selling your house bought on loan within five years of buying it
2) Surrendering a life insurance policy within two years
3) Withdrawing provident fund amount before five years
4) Selling of property, which is exempt from capital gains, within three years of purchase
5) Delay in construction of house for which loan is taken
6) Cash donation made for an amount above Rs 10,000
7) For business purposes:
Businessmen or self-employed persons are allowed deduction for various kinds of expenditure incurred as part of their business. For instance, money paid to a vendor or contractor or salary paid to staff, and so on. In case the tax deducted at source (TDS) is not deducted before making the payment, then the taxpayer is required to pay tax on the entire expense incurred. This rule was introduced from 2005, says Gokhale.
For instance, if you incur an expense of Rs 1 lakh as part of your business, then you are liable to deduct Rs 2,000 as TDS, following which you can claim tax exemption on the Rs 1 lakh. But if you forget to deduct the TDS, then the Rs 1 lakh is added to your income and taxed according to your tax bracket.
"Though the responsibility of disclosing withdrawal of exemption in the tax return and paying taxes on the same rests with the taxpayer, in case he or she fails to report the same, then the tax authorities may seek information for the past six years under section 148 of the I-T Act," says Agarwal.
http://www.business-standard.com/article/pf/7-tax-exemptions-that-can-land-you-with-a-penalty-113090200022_1.html
