Filing an income tax return (ITR) is a very healthy process for your financial status. The ITR document has entire details related to an individual’s income, expenses and tax liability. Thus keeping such essential documents aside is an intelligent move to answer all the queries of the income tax department. Moreover, your ITR mat helps to prevent action under Black Money Act 2015. But how long should you keep this document by your side?
Timeframe to Keep Your ITR Document on Your Side
Presently there is no provision written under Black Money Act 2015 which indicates that there is a certain time frame to keep your ITR documents. But in case an individual has omitted his or her income source from the ITR, then the income tax department can issue a notice under Section 147 of the income tax act for up to 10 years.
MR Balwant Jain, a tax and investment expert from Mumbai, stated, “Under the Black Money Act, there is no specific time mentioned for which a taxpayer should keep one’s ITR documents. However, the income tax department has the power to send a notice under income escaping assessment and this notice can be sent for up to 10 years of ITR filing.”
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“A taxpayer has to retain his tax records for a minimum of 10 years. Generally, an intimation for tax return processing would be received within a couple of months from filing the tax return where any prima facie adjustments are done. However, a notice for detailed assessment can normally be expected at any time within three months from the end of the financial year in which the tax return is furnished. However for income escaping assessment, a notice could be sent before the expiry of 3 years of the relevant assessment year and in cases where the income escaping assessment is ₹50 lakhs or more, the notice could be issued up to 10 years,” said Aarti Raote, Partner at Deloitte India, on Black Money Act.
