What are the consequences of not responding to an income tax notice?

If the income tax notice is not responded in time properly, the AO has the power to demand the tax, interest and penalty based on their best judgement and the demand if not paid in time can lead to interests and penalties upon that amount and ultimately result in revenue recovery and bank account freezing.




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What is presumptive taxation under the Income Tax Act?

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Presumptive taxation is a method of offering the profits on a presumptive basis rather than the actual basis. Under presumptive taxation, you can offer a specific percentage or fixed amount as income despite offering the actual income. For example if your Sales is 1 crore, you may offer 6% of the sales that is Rs.6 lakhs and pay tax based on that instead of offering the actual profits which may be higher say 30 lakhs.  Certain conditions are applicable for one to be eligible to opt for presumptive taxation which are detailed in sections 44 AD, 44 ADA and 44 AE. For Company Registration in Kerala and Business Registration in Kerala , visit parpella.com
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