Most of us get jittery when we see income tax notice. But, relax all notices are not only for paying more taxes or unnecessary harassment. There are various types of notices. Notices can be for intimation also say, for instance if you filed return then you might get a notice u/s143(1) saying that income tax return has been processed.Notices can be received after filing return of income, some for not filing return of income, some for missing some income.
Some notices can be general notices and some for specific cases.The motive and reason behind the notice should be understood first.Action against the notice should be taken after reading it carefully.At times, a general type of notice is sent to enquire about something.Post demonetization many people are getting notices for cash deposits in account. If anyone has opted for IPO(Initial Public Offer) then if amount invested is large notice can be issued to them.
The norms have been stricter due to online filing of return and know your customer norms. As access to data is easy with centralized databases. As bank accounts are linked with PAN card and unaccounted cash or expenditure can invite Income Tax notice.
A notice can also mean an error has been committed while calculating tax. The reply of notice should be given within the time limit stipulated in the notice.
Notice can be received on non filing of income tax return.The employer has deducted the tax and no return has been filed before due date of filing. The notices should be replied or penalty can be imposed. The notice for income of six previous years can be sent by ITO.
The amount deposited should match with income received. If such notices are received then proper documents should be kept and source of income should be supported with a proof.
Post demonetization if any amount is deposited in excess of Rs 50,000 without PAN CARD, and amount of deposit exceeds Rs 2,50,000 and no return of income has been filed then notices can be received.
Ideally when notice is received, it should not be ignored. The notice should be replied, We at Filing Mantra team have the expertise of helping you in filing the reply for any notices received.
One should remember that lack of response will give Income Tax Authority chance to believe that their are some mis appropriations in your dealings.
After demonetization banks have been asked to report the following;
For individuals in savings bank account any amount deposited in excess of Rs2,50,000 or opened Fixed Deposits.
For individuals who have deposited in excess of 12,50,000 in current accounts.
Thus, answering to such notice becomes important as it would make them believe that the sources cannot be explained.
IT department also tracks on purchase of immovable property of high value of past few years.
One can reply for tax notices on incometaxindiafiling.gov.in
Certain procedures have to be followed while replying and remember it should be ontime.
Thank you. Hope you found it useful If you have questions or need help write to email@example.com
FREE10 mins of consultation. Place a request.
As per section 4 of partnership act 1932, partnership means the relationship between the person who are agreed to share the profits of business car...
As per section 44AA income Tax act 1962, every person who is carrying on business or profession is required to maintain books of accounts. However,...
The Prime Minister approved “The constitution amendment bill for Goods and Service Tax”(GST) in the Parliament Session (Rajya Sabha on 3 August 201...