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

A registered office of a bank, a prescribed reporting financial institution, was required to file a statement under section 508 of the Income-tax Act, 2025 but did not do so by the due date. The prescribed income-tax authority serves a notice on it. What is the maximum period the notice may allow for furnishing the statement?

The notice may allow a period not exceeding thirty days from the date of service of the notice. Section 508(7) runs the period from service, not from the original due date, so the thirty-days-from-due-date option is incorrect.

  1. AThirty days from the date of service of the noticeCorrect
  2. BTen days from the date of service of the notice
  3. CThirty days from the due date of the statement
  4. DSixty days from the date of service of the notice

Explanation

Under section 508(7), on failure to furnish within the specified time the authority may serve a notice requiring the statement within a period not exceeding thirty days from the date of service. Counting from the original due date is wrong because the period runs from service of the notice.

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