Income Tax Rules: The Income Tax Department can send you a notice for many reasons. It is possible that you have made some mistake in your income tax return, have not given the correct information of income, or if there is any loss then there is some error in its details.
Getting income tax notice can be a big headache for you. Income tax notice is a communication from the tax department that a discrepancy has come to light in your tax account or profile. The Income Tax Department can send you a notice for many reasons. It is possible that you have made some mistake in your income tax return, have not given the correct information of income, or if there is any loss then there is some error in its details. Let us know under which circumstances you can get income tax notice and what mistakes you should avoid.
1. Entering wrong information about your assets or income in income tax return
You may get a notice from the tax department asking you to disclose your assets and income accurately. If you have not given the correct information in your ITR by mistake, then you can come in this situation. That’s why always give correct information about your assets and income. Along with this, details like your basic information i.e. name, address, PAN number should also be filled correctly.
2. Actual income and declared income not matching
If the department feels that you have not put information about any of your assets in ITR, you have not disclosed your actual income, even then you can get a notice. In your ITR form, the details of income, investment income, assets, etc. should be complete, because if something else appears in your profile, but something else appears in the ITR declaration, then a notice will be sent to you.
3. High volatility in income or transactions
If the department notices that your income has suddenly decreased or increased suddenly, then it can ask for information on this. Also, if you have done many high-value transactions, or have invested money in high-value property or any other similar asset, but your tax return does not have complete information about them, then notice can also come.
4. If there is any mistake in TDS claim
While filling TDS (tax deducted at source), it should be according to the information in Forms 26AS and 16 or 16A. If this does not go well, then you can get a notice under section 143 (1) of the IT Act.
5. Tax evasion case is being made earlier
The department can also assess the earlier tax returns if necessary and if such a case comes out that the correct information of taxable income has not been given in the ITR, then under section 147, the taxpayer can get notice and reassessment can be done. Is.
6. Late Filing of Tax Returns
You should file your tax return by the first of the given date in every assessment year. Paying tax and filing tax return are two different things. Even if you do not come under the tax net, but you must still file your return. Section 142(1)(i) of the IT Act can compulsorily ask you for the return, otherwise a notice can be sent to you. You may also be fined.
Note that if you have received a notice from the Income Tax Department, respond to it as soon as possible, otherwise you may be fined.
