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CMA Final · Direct Tax Laws and International Taxation · Different Aspects of Tax Planning

A bank fails to furnish a statement it was required to file under section 508(1) of the Income-tax Act, 2025 within the specified time. Which action is provided for in the section?

The prescribed income-tax authority may serve a notice requiring the defaulting person to furnish the statement within a period not exceeding thirty days from the date the notice is served. The person must then furnish it within the time specified in the notice.

  1. AThe prescribed authority may serve a notice requiring the statement within a period not exceeding thirty days from serviceCorrect
  2. BThe bank is automatically exempted after ninety days
  3. CThe Board must cancel the bank's registration immediately
  4. DThe statement may be furnished only to the Registrar

Explanation

Section 508(7) lets the prescribed income-tax authority serve a notice requiring the statement to be furnished within a period not exceeding thirty days from the date of service of the notice. The other options have no basis in the provision.

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