Have you got any notice from Income Tax, don't need to panic, here what to do if you get a notice from the IT Department.
Keep all your tax filing details and documents in hand to help with your ITR filing. You can also get the help of a tax specialist to prepare your response to the test notice.
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| Things to do when you get a notice from the Income Tax Department
source - Wikipedia
A notice from the Income Tax Department can please most taxpayers. There are several reasons why I-T may send you notices, and in such a situation you should exercise caution. If you ever receive an I-T notice, it is important that you clearly understand the reason behind this action. And to help you make informed decisions, we discuss some common reasons why you may receive I-T notice, and also what you should do.
1.Filing Late ITR
The last day to file your Income Tax Announcements for the assessment year 2019-20 has been extended to August 31. You may receive a notice if you fail to fill it.
The penalty is up to Rs.10000, so make sure you file your ITR on time.
2. Mismatch in TDS-Form 26AS
Your Tax Deducted at Source (TDS) amount should be tally with your Form 26 AS. However, in some cases, they may not match. There could even be genuine reasons for this mismatch like discrepancy in the past year and for those who have multiple sources of income.
If there is a mismatch, the I-T department may send you a notice under section 143 (1A) to explain these differences. You can respond to these notifications by logging in to the ITR filing portal and by explaining the reasons for the discrepancy, along with valid documents to support your case. You can also ask a professional for help if you get stuck at any point.
2. Non-disclosure of any Income in ITR
They don't just rely on your tax statements. They can reach out to your banks, financial institutions, mutual funds, houses, etc. to inquire about taxpayer income information and if it turns out that you have not disclosed all sources of your income. , May send you notices under this Agreement. Section 143 (1) for such disclosure. When submitting tax statements, be careful before verifying all your income.
In addition to your salary income, the factor of income from home property, investments, profits, family pensions, and certain investment returns (such as fixed deposit interest), and even your own Also earn interest on your savings account when filing an ITR.
Study your bank statement carefully, keep a record of all your investments, and make sure you file your ITR without any errors regarding your income details. If you have not made a mistake, you can reply with correct proof of income. If there is a contradiction in your tax statements, you will have to pay an additional tax amount within 30 days.
3.ITR under scrutiny
These days the department selects random files for I-T inspection. If you receive a notice under section 143 (2), it shows that the I-T department has taken your ITR for investigation. When you receive a notice to investigate, you should respond to the notice within the stipulated period.
Keep all your tax filing details and documents in hand to help with your ITR filing. You can also get the help of a tax specialist to prepare your response to the test notice.
4.Wrong ITR form
Taxpayers who have income from multiple sources can make a mistake in choosing the wrong ITR form when filing their returns. If the ITR was submitted with the incorrect form, the taxpayer may receive a notice under section 139 (9).
Typically, the I-T department has up to 15 days to respond to such matters. If you ever receive this notice, make sure you file a revised return before the deadline. If you fail to do so, your return may be invalidated by the I-T department.
Also, there may be other occasions when you receive I-T notice. For example, in the event of misrepresentation of long-term capital gains (LTCG) from equity investments, by not reporting investments made in the name of your spouse in the collection of penalties. You may also receive notice in the event of a high-value transaction.
Finally, it is worth noting that if you ever receive a tax notice, you do not panic. Read it carefully, the reason behind it, and the timeline to respond. Also, make sure you respond in the timeline.
And lastly, do not hesitate to seek the help of an expert to prepare your answer.
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