IT Act, 1961 – Request for Household Withdrawal Details Under Section 142(1)

The Income Tax Department has increased scrutiny on household withdrawals, particularly cases where withdrawals appear too low compared to declared income. Under Section 142(1) of the Income Tax Act, 1961, taxpayers may be required to submit a detailed breakup of monthly expenses.

What Information is Required?

Taxpayers must provide a breakup of expenses such as:
✔ Ration expenses (wheat, rice, spices, oil, gas, electricity)
✔ Personal expenses (clothing, cosmetics, perfumes, haircuts)
✔ Education expenses (students’ fees, books)
✔ Housing & insurance (rent, car insurance, health insurance, building insurance)
✔ Social expenses (get-togethers, restaurant visits, social events, gift expenses)
✔ Day-to-day expenses (car running costs, household necessities)

What Happens If You Don’t Submit the Details?

🚨 Non-submission may result in the tax department assuming a household withdrawal of ₹10,00,000/- for the year under consideration, leading to potential tax liabilities.

Why is This Important?

✔ Ensures accurate tax assessments
✔ Prevents unnecessary scrutiny or tax demands
✔ Helps in smooth income tax compliance

How Can Taxla Services Help?

Our experts assist in:
✅ Compiling and submitting expense details as per IT department guidelines
✅ Responding to Income Tax notices
✅ Ensuring compliance with Section 142(1)

📞 Need Assistance? Contact Us Today!
📱 +91 9600076134 / 6374812546
📧 auditsiva2@gmail.com
🌐 www.taxlaservices.com

📍 Visit Us:
19, SBI Colony 3rd Street, Saligramam, Chennai - 600093

#IncomeTax #ITAct1961 #HouseholdExpenses #TaxAudit #FinancialCompliance #TaxlaServices



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