Section I: Income Tax and You

• Ques: Do not keep unexplained assets
• Ans: Key points:
  • If you are found in possession of any asset like cash, jewellery, stocks or mutual funds for which you are not able to produce or explain the source of income, then it is taxable as unexplained money.
  • You should always keep the records of your income and the money spent on foreign trips, credit cards, etc.
  • The penalty for such concealment of income is al least the amount of tax evaded and could be up to 3 times the tax evaded. This penalty is on top of the tax evaded, which has to be paid as normal income tax.