As per Section 149 of the Income-tax Act, 1961, the income tax department has the powers to issue a notice to taxpayers for seven years from the end of the financial year. So, this would mean that if you have filed ITR for FY 2019-20, then you must keep the related documents with you till the end of FY 2023-24.
seven years
As per Section 149 of the Income-tax Act, 1961, the income tax department has the powers to issue a notice to taxpayers for seven years from the end of the financial year. So, this would mean that if you have filed ITR for FY 2019-20, then you must keep the related documents with you till the end of FY 2023-24.
When is a tax return not public record?
Unless there is a legal reason to disclose information on a tax return, the information is not available for public access. Tax returns are not public record. If your tax return is needed for a court proceeding, an attorney or a judge can access your personal financial documents, including current and previous tax returns.
Is the Income Tax Department aware of your financial transactions?
But, they do not realise that the Income Tax Department might have knowledge about their financial transactions which can point towards accrual of sources of income at your end. Yes, there are many financial transactions about which the department has a pre-hand knowledge even if you do not declare them in your Income Tax Returns.
What should you not hide from the Income Tax Department?
So, Form 26QB also serves as an important source of information to the Income Tax Department for all the transactions related to the purchase of sales and property. Therefore, you should not avoid declaring such income as the department is pre-informed about it. Banks deduct TDS on interest on FDs of their depositors.
Can a tax department ask for tax information?
But the income tax department cannot ask tax-related details from just about anyone; it is meant for certain exceptional cases.
