If you have been served an Income Tax notice, don’t get perturbed. Gearing up of technology and processes like Know your customer and E Filing have made it simple for the Income Tax department to identify those individuals not disclosing
their income, defective filing or not revealing the transactions, etc. Hence no one can get away or evade taxes which needs to be paid by them. When you receive the notice have patience and understand the specifications in the
notice on ask expert tax consultants for a solution.
Income tax notice is sent only when they are sceptical on certain things which are not fulfilled like:
Name or PAN details or other personal information are incorrect
Delay in the filing of returns
When the TDS mentioned in form 16 is different from the original tax credit mentioned in form 26AS
Improper disclosure of income gained from various sources like stocks, bonds, interest on FDs or rental income
Non disclosure of wealth tax
When there is a transaction of high value made by an individual which is 2 lakh or more with or without furnishing PAN details.
Tax payer must not panic when receive income tax notice. Steps to deal with income tax notice
Do not ignore a notice
Check basic details about notice such as section, reason/description
Record keep supporting documents such as income proofs, investments proofs, sale deeds
Preserve the notice for your records
Respond to notice in time
Tax payer can easily avoid income tax notices by complying with tax laws such as
Pay tax dues on time
File return on time
Disclose accurate information on income tax return
Keep calm and understand what is written and what has to be done
Check whether your name PAN details, date of birth, etc. is correct
Decipher as to why the notice has been sent
Check for when the notice has been issued and why
Prepare the necessary documents to be sent
If the intensity of the notice is high then take professional helps
Reply to the notice on time.
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