look news india
Income Tax Notice: The current financial year is about to end and with it the date for filing Income Tax Return (ITR) is also approaching. Taxpayers have a big contribution in boosting the country’s economy. Taxpayers adopt many methods to save income tax. The government also runs many schemes for tax reduction.
Taxpayers have to give information about all their investments while filing returns. But if a taxpayer gives wrong information, it can create problems for him. Generally people make some mistakes which create problems for them.
If a taxpayer gives wrong information in the income tax return form, then the Income Tax Department can send him a notice under different acts. There are two types of ITR verification process – manual and mandatory. Mistakes can be avoided by keeping some things in mind.
non filing of ITR
The Income Tax Department many times sends notices to taxpayers for non-filing of ITR. If you fall in the tax slab, it is mandatory to file ITR. Suppose you are an Indian citizen, but you have foreign assets. In this situation also you will have to file ITR. Otherwise the Income Tax Department may send you a notice.
mistake in tds
You should fill TDS carefully while filing ITR. If there is a difference between the TDS filed and where it has been deposited, you may get a notice from the Income Tax Department. Therefore, before filing ITR, find out how much TDS has been deducted.
undisclosed income
You have to tell in ITR how much you earn in a financial year. Along with this, investment information also has to be given. In such a situation, if you hide investment income, you may get a notice. To avoid notice, get the interest statement from your bank and include it in ITR. Apart from this, please give information about income received from any other source.
high value transactions
Even if you do a high value transaction, which is different from your normal transactions, a notice from the Income Tax Department may come. Suppose your annual income is Rs 6 lakh. But Rs 15 lakh was deposited in your account in one year. In such a situation, the Income Tax Department can investigate it and your source can be asked.
mistake in itr return
Many times people make mistakes while filing income tax returns. People forget to fill important details. If this happens, the Income Tax Department can send a notice. Therefore, you should get your ITR filled by a professional only.