Some Facts Why You Received Income Tax Notice

You may get stressed on the off chance that you get a notification from the income tax department. You can get a tax notice for some reason. These could incorporate not recording income tax return (ITR) on schedule, count mistakes, not revealing income effectively or in any event, asserting exorbitant misfortunes.

Taxpayers, as a rule, are given income tax sees u/s 139(9), 143(1), 143(2), 143(3), 245, 144, 147 and 148 of Income Tax Act, 1961 concerning for to non-recording of ITR, camouflage of taxable income, asserting an in real tax discount, registering over the top tax misfortunes, LTCG, scrutiny, etc.

10 Facts: Why Taxpayers Can Gent Income Tax Notice

Late ITR ( Income Tax Return) Filing: In case of late filing of ITR you may 

get the reminder notice from the income tax department before the end of the evaluation year for your due returns. If you are failed to file the ITR before the due date, For filing ITR after due you have to pay late filing fees which is ₹ 5,000 if you file the return after the deadline but on or before the end of the year. This late fee will be increased to ₹ 10,000 if you file your ITR After 1st January 2020.

Inaccurate LTCG: In case of showing inaccurate or false data in ITR against the LTCG you will receive the notice from the tax department.

The audit of high-esteem exchanges during tax investigation empowers charge officials to distinguish unreported capital increases. "While finishing the evaluation under section 143(3) the officials will incorporate these as assessable wages, charge enthusiasm on charge setback and start punishment procedures under section 270A.

If they found data mismatch occurred due to the calculation mistake you will only be asked for the payment of due tax.

Mismatch of Claimed TDS in Form 26AS: You will get the notice from the income tax department If the tax department found a mismatch in claim TDS as per your Form 26AS. At the time of filing ITR, TDS should be same in the Form 26AS, Form 16 and Form 16A. However, there is some exception in which details may mismatch sometime.

Showing incorrect Gross income: Revenue authorities collect income information from different sources like banks, employers, tents, etc. If you hide some income in your ITR you may get the income tax notice u/s 139(9) or 143(1) for non-disclosure of income.

Hiding investment made on the name of spouse: Yes you will get the income tax notice for hiding investments made on the name of spouse. In such a case, If you have invested in the name of your spouse and earning money from this investment you have to show this investment in ITR. Any income from such investment is taxable and must be mentioned in ITR.

Defective Return Filing: In case of not filing ITR In the correct form you will get the tax department notice. You will get the Defective return filing notice u/s 139(9). After getting this notice you have to respond within 15days after receiving this notice.

High-Value Transaction: If you have made any high-value transaction in financial year but not filed ITR yet and you identify by tax department in such case you will get income tax notice in which you can ask by tax department to mention the source of funds for making such high-value transaction or filing ITR within 21 days after receiving the notice.

Return Scrutiny : The tax department randomly selects the scrutiny case. If you have scrutiny notice from the income tax department keep calm and reply wisely. Scrutiny process may be related to the mismatch of data, inaccurate reporting, return field and all respective documents, etc.

Check the validity of the notice and respond accordingly in the given time frame. If you fail to respond in the given time frame, the tax department can charge you of ₹ 10,000 penalty under section 272A of the income tax act.

Settlement of Refunds against remaining Tax Payable :  When we claimed for a refund on tax paid but there are some dues payable by the taxpayer. In such a case, you will get the notice and ask for the settlement of refunds against remaining tax payable.

Income Tax Evasion : Income tax evasion is a criminal offense in India, This notice to be issued when the tax department is able to gather enough new information from different sources providing that taxpayer has the reason of fraud, willful false statement, suppression of facts evaded taxes.

Getting income tax notice from the income tax department does not mean you have committed any fraud or intentionally show the false data. When anyone gets the above-mentioned income tax notice don’t be panic read it calmly if you are not understanding then get the help of a consultant and do needful.