Notices from the Income Tax Department are very common these days due to their pepped up Tax compliance measures thru computerized / automated rules.
While Receiving IT Notice is not a fun for anyone, it may create some panic among the taxpayers. The taxpayers need to react quickly, and within the specified time limit to address the queries from IT Department to clear the notice and / or Tax dues, if any.
Per EZTax.in Team, below are Top 7 reasons why a Taxpayer may get an Income Tax Notice from the Department
If the Income declared in IT Return does not match with Form 26AS, then the ITD may serve the notice to the taxpayer for arithmetical inaccuracies. The Taxpayer should submit either the revised return or submit the response to the query.
The TDS claimed in the Tax return should match with the Form 26AS. Otherwise, the ITD may serve the notice on the taxpayer to correct the TDS amount. Prepare a defective IT return and upload the json on the ITD Portal
If the taxpayer have forgotten to include any income like interest, commission income etc., or claimed deductions under wrong sections or the information provided by the taxpayer is incorrect, then there is a chance of notice by the ITD. The Taxpayer needs to correct it immediately. The taxpayer should submit either the revised return or submit the response to the query
The Income Tax Department is randomly selecting the IT returns to be scrutinized. The taxpayers needs to prepare the covering letter in explaining the reasons in his favour covering why, what, when. Upload the required documents within the time allotted by the ITD. Get an expert advise or help in submitting your response. Get a expert tax consultation today.
If the taxpayer has deposits of more than 2 Lakhs in bank, mutual funds investments of more than 2 Lakhs, Sale or purchase of Property etc needs to be reported to Income Tax Department. If not reported, then there is a chance of notice from the Income Tax Department.
If the taxpayer does not pay the Self-Assessment tax at the time of filing the return, then the ITD may serve a notice to the assessee requiring him to pay the tax.
Filing of Returns is not enough in some cases. Income Tax returns should be accompanied by some forms. Below are some examples of defects in Income Tax Returns
It is generally very difficult to know all the rules from a common taxpayer perspective but following basic checks may avoid most inconvenience from the Income Tax Department. Some of the basic checks would be ..
While Income Tax department do send the notices in an email and possibly intimated thru SMSs, often times these were ignored due to the plethora of emails we get on a day-to-day basis. Hence EZTax.in recommends taxpayers to visit ITD portal to see the notice yourself or Speak to Team EZTax.in to get help.
In case you want to see your IT notices on your own, visit How to see your IT Notices ?
or Visit other articles such as How to handle your IT Notices ? and other documents @ EZTax.in Income Tax Help Center
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