00:00Do you know what happened when a NRI has earned income tax return for 43,796?
00:08But it was 14,000,000,000.
00:11The tax officer gave a penalty to 200%
00:15But the ITAT gave a 50%
00:20Yes, we will tell you this
00:23The tax officer gave a 2,000% penalty
00:26But the ITAT gave a 50%
00:30Today we will understand this real case
00:32What is the difference between under-reporting and miss-reporting?
00:37When will it be 50% and 200% penalty?
00:41When should the NRI tax payers get rid of any mistakes?
00:44Or it will be a good penalty
00:46Hello and Welcome
00:48Good Returns
00:49I am with you
00:50This is what I have told you in the beginning
00:53This is the situation
00:55The situation started in the assessment year 2020-2021
00:58Tax payers was 157-year-old NRI
01:02Which is living in the village
01:03The ITAT file
01:06The total income was only 43,796?
01:10And 43,796?
01:14But the interest income was around $14,46,000?
01:20Which was not a report in the return
01:22When it came to this pending report,
01:24The assessing officer
01:25If this is the missing report,
01:27The missing-reporting penalty
01:40Income Tax Appealate Tribunal,
01:41i-TAC, Mumbai Bench.
01:44Now, Mahila said that he is an ideal citizen.
01:48He always has the idea of ITR.
01:50He said that he has all the tax compliance
01:54due to the tax compliance of an accountant.
01:56He didn't know electronic notices.
02:00He told the technical, limited,
02:03that he didn't know.
02:04When he was wrong,
02:05the tax and interest of 5,49,400,
02:10he was released in January of 2015.
02:13The appeal of his claim was that
02:17it is under-reporting, not misreporting.
02:20This is why Section 270A
02:22should be 50% penalty,
02:25but it is not 200%.
02:27Now, the tax officer and CITA
02:30had something like this,
02:31that the interest income
02:35was completely omit.
02:36It was not a bad thing,
02:38it was a bad thing.
02:40It was a bad thing,
02:41that the tax paper has not been
02:41added.
02:42The tax payer,
02:43voluntarily,
02:44the income disclosed,
02:46not the same.
02:47It was not a bad thing,
02:51It was not a bad thing.
02:54It was a bad thing,
03:01it was a bad thing,
03:02it was a bad thing.
03:03This is the most important part of this video. The tribunal has said that every omission is not automatically misreporting.
03:15If the income has been assessed or the taxpayer has not answered electronic notices, this is not automatically a penalty.
03:2450% or 200% difference is very important. Under-reporting or basic category, the penalty is less than 50%.
03:33Tax on under-reported income. Misreporting or aggravated category, the penalty is less than 200%.
03:41But in some specific conditions, this is only 200% difference.
03:49Now, ITAT has said that the revenue must be misreporting.
03:52The department has shown that the case of Section 270 and Subsection 9 in the specific misreporting conditions,
04:00such as facts suppression, false entries, unsubstantiated claims, etc.
04:06Now, in this case, the department has not been approved.
04:09The tribunal also has missed the investigating factors.
04:13There was a taxpayer and NRI.
04:15There was a compliance accountant.
04:18There was a limited technological knowledge claim.
04:21There was a total tax and interest in this case.
04:44That price of $5,9,410, that the tax and interest avetech is a separate liability.
04:49The tax payers have a different liability.
04:50The penalty is a separate liability.
04:52That $5,9,990,000-$3,000.
04:54The income is not ersatzis expense brokers has decreased.
04:55The I, I, that has been reduced by the penalty rate as well.
04:58200% ca. 50%
05:01Penalty is not done without a penalty penalty but is not done by the penalty penalty.
05:05So, total outflow goes high.
05:08Under-reporting and mis-reporting.
05:11Under-reporting income is very important when assessed or reassessed income is increased.
05:18Filed Returns, which we have assessed and checked and re-assessed income, the Filed Returns, which we have returned.
05:29This is a basic category. Shortfall is triggered. Normal Penalty is 50% tax on under-reported income.
05:38Misreporting of Income is an aggravated form, which is a very big form.
05:44In law, there are specific situations, such as facts, misrepresentation, false facts, or suppression, or some facts.
05:54In books of accounts, investments, not to show up.
05:57In a saboot, expenditure claim.
06:00False entries, record income, receipts, or international and specified domestic transactions, not to show up.
06:10Misreporting proved, the penalty will be 200%.
06:30In this case, NRI and the resident, two tax payers have various lessons that are required.
06:39I trust my accountants, who are working on something else, are reassessing your books of accounts.
06:47Compliance is delegated, but the final responsibility is the taxpayer.
06:51Bank statements, form 16, form 16A, AIS, TIS, Interest Certificates.
06:572. Electronic notices ignore, NRI or resident, e-proceedings portal.
07:123. Interest income systematically report.
07:17Savings, FD, NRO, NRE Deposits, Bonds, all sources can be taxable.
07:23Subject to DTAA and residential status rules.
07:28AIS and TIS match, ITR fill.
07:314. This is the case of tax and interest time.
07:37This is a mitigating factor.
07:40But, this is the case of tax and interest pay.
07:445. NRI means no penalty.
07:496. NRI status or tech limitations explanation, but compliance obligation is not necessary.
07:57Next, ITR file, check the bank interest.
08:027. Savings, FD, RD, NRO or total.
08:068. AIS or TIS, Interest Entries match.
08:108. If accountants, ITR fill.
08:138. Final review.
08:148. Specially interest, capital gains, foreign assets and foreign income.
08:199. Income tax portable, registered email and phone active.
08:239. Notice regularly check.
08:259. Cold discrepancy.
08:2610. CA or tax advisor.
08:2810. Dairy penalty.
08:3012.
08:3111.
08:44$2.
08:4710.
08:4711.
08:5113.
08:5915.
09:0014.
09:00Thank you so much for joining us, and we will also request you to visit your books of accounts.
09:08If you like this case and tax lessons, please like and subscribe.
09:14And in the comment section, please tell us about NRI tax topics.
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