Wednesday, May 25, 2022

India Economy I Few reasons why you can get income tax notice and how to respond

Few the explanation why you will get revenue tax discover and easy methods to reply&nbsp | &nbspPhoto Credit score:&nbspBCCL

Most taxpayers are achieved with submitting their revenue tax returns for revenue earned within the monetary yr 2019-20 or Evaluation Yr 2020-21.  

The revenue tax division will now course of the ITRs filed and ship the intimation below Part 143(1) of the Earnings Tax Act, 1961. It’s after this stage {that a} taxpayer may get a discover. Don’t panic even should you get a discover from the I-T division. There are primarily seven the explanation why a taxpayer will get a discover.

It might be because of tax deducted at supply (TDS) quantity error, mismatch of knowledge within the ITR filed, random scrutiny by I-T division, ITR not filed earlier than the due date, high-value transactions, non-disclosure of revenue for wealth tax amongst others. Beneath are among the acts below which you is perhaps served the discover and the way to answer it. 

Part 139(9)

The taxpayer is perhaps served a discover below Part 139(9) of the Earnings Tax Act primarily if info on the filed ITR kind is unsuitable or whole tax dues haven’t been paid. A discover may also be served below the part if the taxpayer has claimed a specific refund for deducted tax however didn’t point out the revenue or in case of a mismatch on the shape or PAN card or if taxes paid don’t match revenue. 

Tips on how to reply: In such a scenario one has to reply inside 15 days of being intimated by the assessing officer (AO). You possibly can write to the native assessing officer and request for an extension however the ITR might be invalid should you don’t reply. 

Acquired to the web site revenue tax submitting web site and obtain the ITR of the given evaluation yr. From the given choices, choose ‘in response to note below Part 139(9) and add utilizing the password supplied within the discover.

Part 245

The discover below this Part is shipped if a taxpayer claimed refund however there may be additionally some excellent tax pending to be paid to the division. On this case, the AO may deduct the pending tax from due refund quantity. 

Tips on how to reply: Upon receiving the discover below this Part, the taxpayer should check with the previous paperwork and confirm if the declare is appropriate. Calculate the tax payable and the quantity paid. From the revenue tax submitting web site talked about earlier discover and choose the choice ‘Response to Excellent Demand’ below which choose appropriately should you consider the ‘demand is appropriate’ or partially incorrect.

Part 143(1)

That is simply an intimation letter informs if the tax paid is appropriate or roughly than the due sum. There are three kinds of notices served below this Part pertaining to intimation, demand or refund relying on the computation by AO of your tax dues. 

Tips on how to reply: In case of demand discover, you have to pay inside 30 days from the date of the discover below the Part. Nonetheless, in case of intimation or refund you don’t want to reply. 

Part  143(1A) 

The taxpayer receives the discover below this Part if there’s a discrepancy between revenue point out a Kind 16 or deductions below Part 80C or Chapter 80C or Chapter VIA and Kind 26AS. 

Tips on how to reply:  You might want to reply inside 30 days receiving the discover. Log into the revenue tax submitting web site and below the ‘e-Processing’ part clarify the discrepancy and add the supporting paperwork.  

Part  143(2): This discover is shipped a observe up of the sooner discover below Part 143(1) and pertains to AO’s response. In the event you obtain this discover, it implies that you come might be subjected to detailed scrutiny. 

Tips on how to reply: The taxpayer might have to look in particular person or by a consultant for the listening to earlier than the officer on the notified date

Part 148

Discover below Part 148 is perhaps despatched if the AO thinks that some revenue might need escaped evaluation. The taxpayer is perhaps requested to file an evaluation for a similar yr.  

Tips on how to reply: If the revenue that escaped scrutiny is lower than Rs 1 lakh or much less, It it’s greater than Rs 1 lakh than the discover an be despatched inside Rs 1 lakh. 

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