Why Do You Get an Income Tax Notice?
#1. Non-filing of Income Tax Return
#2. Mismatch of Form 26AS with declared income.
#3. Non-Disclosure of Income
#4. Not declaring details of assets and investments made.
#5. Abnormal cash transactions
#6. For filing the defective return
#7. If you have done high-value transactions during the year
#8. If your return is picked for scrutiny
#9. For tax evasion in earlier years
How To Respond When You Receive An Income Tax Notice?
An encounter with the income tax department is usually filled with stress.Ensure the below before taking any further steps
1. Is it really your name on the income tax notice?
2. Is your Pan Number mentioned correctly?
3. Which assessment year such notice relates to?
4. Is there a correct document identification number [DIN]?
If all particulars are correct in the notice then you must need to reply to the notice within time. Our professional can help you understand the nature of the notice and assist you to draft and file the reply to the income tax authorities.
Critical Income Tax Notices
#1. Notice under Section 143(3) - This notice is received when the income tax return filed is picked for scrutiny. Now, the Income tax officer will call upon all information to examine all the possible sources of the income. Income tax officers shall add the income found which is not declared in ITR and also impose heavy penalties.
#2. Notice under Section 148 - This notice is received when the income tax official found some information that taxpayer has concealed the income and not paid tax on it.
Non-Critical Income Tax Notices
#1. Non-filing of Income Tax Return - This notice may ask you to file income tax return since there may be large value transactions or any entry available in Form 26AS.
#2. Confirmation Balance u/s 133(6) of the Income Tax Act, 1961 - Sometimes Income tax authority issued a notice to ask you to confirm the balance outstanding of the 3rd party with you, just to cross verify.
#3. Intimation u/s 143(1) of the Income Tax Act, 1961 - This is automated generated income tax return processing intimation order. This notice gives you a comparative statement of the income and other particulars declared by you in income tax return and particulars accepted or not accepted by the income tax authority. This may raise income tax demand which requires to be paid or rectified with the help of professionals.
#4. Defective Return Notice u/s 139(9) of the Act, 1961 - This notice is received when the income tax authority found any particular in the income tax return filed not aligned with the income tax rules. In such cases, you need to rectify mistakes and refill the income tax return.
Documents Required for Income tax Return
#1. PAN Card
#2. Bank Statement
#3. Form 16 & 16A
#4. Digital Signature Certificate