I wonder whether any members have experienced questioning (or harassment) by IT office(r)s, about your tax filing, or your assets in the foreign country, or some procedures, or any other points.
Please share the information as much as possible.
Have you faced Indian Tax audit ?
Have you faced Indian Tax audit ?
I dont know if I would use the word harrassment. That is a strong word. But yes I have got love letters from IT dept.
In US, I do get penalties & interest charged as many times I dont make proper (either I dont or they dont think my calculation is correct) estimated tax.
In India, they write letters, and I give it to my accountant, and he writes back love letters to them and they keep this to & fro conversation. And ofcourse the accountant charges an arm for this.
Basically it is a issue, but you solve it by delegating it to the accountant.
Whether in US or India, more complex the tax situation is, it is inevitable you will have to answer this question. If you are perfectly legal, then it may just involve obtaining additional documentation etc.
In US, I do get penalties & interest charged as many times I dont make proper (either I dont or they dont think my calculation is correct) estimated tax.
In India, they write letters, and I give it to my accountant, and he writes back love letters to them and they keep this to & fro conversation. And ofcourse the accountant charges an arm for this.
Basically it is a issue, but you solve it by delegating it to the accountant.
Whether in US or India, more complex the tax situation is, it is inevitable you will have to answer this question. If you are perfectly legal, then it may just involve obtaining additional documentation etc.
Have you faced Indian Tax audit ?
In early 80's we had bought a flat in my wife's name. Little later I was visited by 4 IT officers in my office. That was the address given during purchase. I had my wife's previous tax return files in the office. I pulled these out and started to explain the source of funds and the guys lost interest. They were just offerred tea as any other visitor to the office would have been.
In late 80's, I lost faith in the accountant who used to do our company and personal tax accounts, and decided to file returns on my own.
For next 3 years, I got an invite (summons) to appear before the ITO to expalin the returns. Ist and 2nd time, the ITO looked at my file and asked the reason for my visit. On being told that I had been summoned, he said that but there is nothing here that needs any explanation. The 3rd time I asked if someone has given the deptt. some information or made a complaint or could it be related to my having fired the accountant. He responded that there is nothing like that. But I did not get any more summons. My next visit was to get my tax clearance for leaving the country for employment abroad. It went like a zephyr.
In late 80's, I lost faith in the accountant who used to do our company and personal tax accounts, and decided to file returns on my own.
For next 3 years, I got an invite (summons) to appear before the ITO to expalin the returns. Ist and 2nd time, the ITO looked at my file and asked the reason for my visit. On being told that I had been summoned, he said that but there is nothing here that needs any explanation. The 3rd time I asked if someone has given the deptt. some information or made a complaint or could it be related to my having fired the accountant. He responded that there is nothing like that. But I did not get any more summons. My next visit was to get my tax clearance for leaving the country for employment abroad. It went like a zephyr.
Have you faced Indian Tax audit ?
I think #2 talks about India. I shorted some stocks in US and did not cover before the end of the year. I did not report that in my tax returns. I got a letter from IRS saying that the w9 from the broker and my returns did not match. I was assessed addl tax, penalty and interest. I went to a tax consultant. He screwed up some details while responding to that query. So, I got another letter asking to pay based on the revised wrong filing of my tax consultant. I sat with the tax consultant and this time I submitted an accurate return. I got a letter thanking me for clarifying all their queries and case closed. Overall, I have no complains about their queries. If you explain properly, they do not trouble you.
In India, I do not expect such straight forward things. I heard IT dept is corrupt in India.
In India, I do not expect such straight forward things. I heard IT dept is corrupt in India.
Have you faced Indian Tax audit ?
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I dont know if I would use the word harrassment. That is a strong word.
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I agree; the officer may be performing his work but that is what it may feel like for one facing it.
I am just interested in knowing about the general trend on this.
Thank you.
I dont know if I would use the word harrassment. That is a strong word.
[/quote]
I agree; the officer may be performing his work but that is what it may feel like for one facing it.
I am just interested in knowing about the general trend on this.
Thank you.