453 : Circular No. 453, dated 04-04-1986

Circular No. 453, dated 04-04-1986

Clarifications on issues relating to effect of filing higher estimates of income for advance tax purposes on assessments for earlier years/filing of returns of income by new assessees declaring substantial income in the initial assessment year/filing of higher returns of wealth for earlier years

Extension of benefit of amnesty scheme till 30-9-1986 - 1. Taxpayers are aware that the "amnesty" offered by the Government in terms of the following circulars expired on 31-3-1986:

- Circular No. 423, dated 26-6-1985 [Clarification 1]

- Circular No. 432, dated 15-11-1985 [Clarification 2]

- Circular No. 439, dated 15-11-1985 [Clarification 3]

- Circular No. 440, dated 15-11-1985 [Clarification 4]

- Circular No. 444, dated 15-11-1985 [Clarification 5]

- Circular No. 451, dated 17-2-1986 [Clarification 6]

There have been numerous requests from various parts of the country for extending the time limit a little longer. It has also been pointed out that there were several closed holidays in the last week of March. Further, in States like Punjab, most of the towns were under curfew; thereby disrupting normal civic life. The response to the "amnesty" offer has been very good indicating a desire on the part of many people who have hitherto concealed their income to turn over a new leaf. In view of all this, it has been decided to extend the benefit of the "amnesty" circulars, referred to above, till 30-9-1986 in cases where the assessee wants to disclose income or wealth relating to the assessment year 1986-87 or earlier.

2. So far as the assessment year 1986-87 is concerned, the disclosure of the true income and wealth in the income-tax and wealth-tax returns and the prompt payment of taxes due on the same under section 140A of the Income-tax Act, and/or section 15B of the Wealth-tax Act, will entitle the taxpayer to immunity from penalty and prosecution. It may be noted that where the return for 1986-87 is not filed on the date on which it is due under section 139(1) of the Income-tax Act/or section 14(1) of the Wealth-tax Act, the immunity will not extend to the penal consequences of the late filing of such return.

Circular: No. 453 [F.No. 225/86/85-IT(A-II)], dated 4-4-1986.