Loss making company not filing return since 6 years is there any penalty or can any action be taken by IT Dept

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Loss making company not filing return since 6 years is there any penalty or can any action be taken by IT Dept

2007-03-18 03:32:26 · 2 answers · asked by ssunderagarwal 4 in Business & Finance ➔ Taxes ➔ United States

2 answers

Returns are required to be filed only when you have a taxable income. IT Dept. an take action in demading to know profit or loss. However IT Dept. may ignor such company if making loss for several years.

2007-03-18 03:51:01 · answer #1 · answered by Shemit 6 · 0⤊ 0⤋

I think one should file returns. Loss or profit let IT decide whether to scrutinise or not.
Moreover if you have valid PAN number, it is your duty to file a return,failing to do so IT dept will anyway ask for explanation.

2007-03-20 01:34:07 · answer #2 · answered by NJP 1 · 0⤊ 0⤋