Skip to content

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

Under section 508 of the Income-tax Act, 2025, a prescribed reporting financial institution finds that a statement of financial transaction it furnished contains an inaccuracy. Within how many days of becoming aware of the inaccuracy must it inform the prescribed authority and furnish the correct information?

The person must inform the prescribed authority of the inaccuracy and give the correct information within ten days of becoming aware of it. The thirty-day period applies to rectifying a defect the authority points out or to answering a notice for a missing statement, not to self-detected inaccuracies.

  1. ATen daysCorrect
  2. BThirty days
  3. CFifteen days
  4. DSixty days

Explanation

Section 508(8) says a person who has furnished a statement, or furnished one in response to a notice, and becomes aware of an inaccuracy must inform the authority within ten days and furnish the correct information. Thirty days is the period for rectifying a defect intimated by the authority under sub-section (5) or for responding to a notice under sub-section (7), so it does not apply here.

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