Discover more about Section 133(6) which requires furnishing designated financial details, promoting tax compliance and transparency under legal obligation.
Section 133(6) within the Income Tax Act empowers the Income Tax Department to gather information and documents regarding a taxpayer’s financial transactions. This provision allows the department to issue a notice to a person requiring them to furnish specific documents or information relevant to their income or transactions. It forms a crucial part of tax inquiries and proceedings undertaken by the department to ensure compliance and accuracy in taxation matters. The section plays a pivotal role in enabling the Income Tax Department to collect essential data about a taxpayer’s income, transactions, and financial activities, aiding in the assessment and verification processes.
Entities involved in Section 133(6) encompass the Income Tax Department, which exercises its authority to issue notices, and the taxpayer, who must provide the requested documents and information. These proceedings serve the purpose of scrutinising and verifying the taxpayer’s income-related transactions. Through this section, the department ensures transparency in tax proceedings, leveraging its powers to gather necessary details to support tax inquiries and assessments. Ultimately, Section 133(6) stands as a tool for the Income Tax Department to conduct thorough investigations into a taxpayer’s financial activities, aiming to maintain the integrity of the tax system and uphold compliance with tax regulations.
Provisions Under Section 133 6
- The issuance of notice from any individual, including the assessee, under section 133(6),
- As per the provisions under this section, the information that can be called for on any point or accounts or matters that in the opinion of the authorities specified will be useful or relevant to any enquiry or proceeding under the Income Tax Act
- The information can be called for not always have been pending proceedings but can be called whether the proceedings are pending or not
- The information can be called for checking whether the proceedings are pending or not and also for the pending proceedings
- There is no farmed time limit for the calling for information.
Reasons to Receive a Section 133(6) Notice
- Failure to file tax returns
- Discrepancies between reported income and actual earnings
- Inconsistencies in tax-related data provided to authorities
- Suspected attempts to evade taxes
- Missing or incomplete details in tax filings
- A preliminary step toward investigating potential tax non-compliance or discrepancies.
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Things to Do After Receiving Section 133 6 of Income Tax Act
- Understand the specified information required
- Collect all relevant financial records and documents
- Consult a tax expert or lawyer for guidance
- Adhere to the stipulated deadline for compliance
- Ensure all data submitted is correct and complete
- Respond truthfully and cooperate with any further inquiries
- Keep copies of all communications and submissions for reference.
Type of Information to Be Submitted Under the Act
Information required under the Income Tax Act includes personal details like name, address, and PAN, along with financial specifics such as income sources, investments, assets, liabilities, and tax filings. Additionally, details about business activities, partnerships, or any financial transactions must be provided. Supporting documents like bank statements, receipts, contracts, and relevant records validating the reported information may also be necessary.
Accurate and comprehensive data showcasing income, expenses, deductions, and tax liabilities should be furnished within the stipulated time frame, ensuring compliance and transparency in accordance with the provisions of the Act.
Terms and Conditions of Section 133 6 of Income Tax Act
- Authorised issuance of notices by tax authorities
- Seeking specific details for scrutiny
- Issuance based on reasonable suspicion of non-compliance
- Mandating a specified time frame for response
- Non-compliance may lead to penalties or legal actions
- Ensuring confidentiality of information shared
- Exercise of authority within the confines of the law
- Upholding legal provisions during the information collection process.
FAQ’s
What is the failure of 133 6 of the Income Tax Act?
It refers to non-compliance with providing specified financial information upon receiving the notice, leading to potential penalties or legal actions.
How do you respond to a Notice 133 6?
Respond promptly, providing accurate and complete financial details as requested within the given timeframe, seeking professional guidance if needed.
What is the rule 133 of income tax rules?
It details the format and procedure for issuing notices under Section 133(6), outlining the required information and compliance guidelines.
What is the exemption of 133?
There's no explicit exemption under Section 133; all relevant individuals or entities must comply with the notice's requirements.
What is Section 133 of the Civil Procedure Code?
It empowers courts to conduct inquiries and investigations for administration of justice, distinct from the Income Tax Act's Section 133(6).
What is the statement of jurisdiction under Article 133?
Article 133 deals with the jurisdiction of the Supreme Court in appeals, allowing cases to be heard if they involve substantial legal questions of general importance.
What is Section 133 prevention of encroachment?
It pertains to measures ensuring the prevention and removal of encroachments on public or government property, unrelated to the Income Tax Act's Section 133(6).
Conclusion
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