Skip to content

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

A reporting entity filed a statement under section 508(1). The prescribed income-tax authority intimated a defect on 1 March and the entity did not rectify it within thirty days or any extended period. What is the consequence under the Act?

If the defect is not rectified within thirty days or the extended period, the Act applies as if the person had furnished inaccurate information in the statement. It is not treated as never filed and is not condoned automatically.

  1. AThe statement is treated as never filed and a fresh notice must be served
  2. BThe provisions of the Act apply as if the person had furnished inaccurate information in the statementCorrect
  3. CThe defect is condoned after sixty days automatically
  4. DThe statement is deemed valid because the authority has no power to consider it defective

Explanation

Under section 508(6), if the defect remains unrectified within the thirty days or the extended period, the Act applies as if inaccurate information had been furnished. The treatment as not filed is not what the provision says; that would lead to a notice under sub-section (7).

Did you get it right without looking?

One question tells you little. A timed set on Different Aspects of Tax Planning shows your real accuracy, how long you take and where you lose marks.

Practise Different Aspects of Tax PlanningFree diagnostic mock

More Different Aspects of Tax Planning questions