There is always an ambiguity that, the assessee will receive a notice from the Income Tax Department or not.  Further, the Income Tax Department is collating all sorts of information from various sources. After which the tax authorities furnishes notice to the assessee.

When an assessee receives a notice from the department then there is no need to Panic. A notice merely doesn’t essentially mean that the assessee has committed something against the law and even a minor error in the legal documents will invite a notice from the tax department. Further, the assessee can revert on e-filling website and attach the relevant information or documents.

1. Tax Deduction at Source (TDS) Error?

It is often been observed that when an employer or a deductor (Employee) files returns there is a mismatch in the TDS (Tax Deduction at Source) amounts.

Tax Deduction at Source (TDS) figure in Form 16 should always tally with the amount mentioned in Form 26AS. A notice is been issued against the PAN number, which states that there is a mismatch in the figures mentioned in Form 16 and Form 26AS. However, the department considers Form 26AS as the appropriate figure.

Further, if the amount of TDS is not revised timely by the employer or a deductor, then the assessee may receive an Income Tax notice. So, it is advisable to request your employer to revise the TDS returns.

2. Income Tax Return not filed.

Majority of the assessee have an assumption that they do not have any tax liability, so they do not have file tax returns. This exemption is applicable to that assessee whose gross annual income is below the basic exemption level that is Rs. 2.5 Lakhs.

For better understanding you can refer to the article-Tax Rates for Individuals for FY 2015-16

3. Non-Disclosure of Income

The taxpayers are under an obligation to pay wealth tax on assets that they own are worth more than 30 lakhs. These assets needs to be disclosed and taxes levied on such assets needs to be paid. If the tax levied is not paid by the assessee a notice from the department will be furnished.

So, it is advisable that the assessee should disclose such assets and pay the tax levied on such assets.

4. Notice of High value Transactions

The tax department closely scrutinizes individual’s details and documents. A mismatch in the data values in respect to income/ investments. The Department may send an Income Tax Notice.

So, it is advisable that the individuals should report about all High Value Transactions to the tax authorizes.

5. Investments in the name of Family Members

The Taxpayers quite often purchase assets or make investments in the name of the family members- spouse, children, siblings or parents.  Such incomes should be declared while filling income tax returns, if not declared then it will end up attaching the attention of the tax department.

So, it is advisable that the assessee should disclose the assets or make investments.

6. Documentations

As the tax department make a close scrutiny of the individual personal details and information, based on which returns are filed. The Income tax authorities may issue a notice in regards to the same. So, the assessee is required to furnish such specified details and information immediately.

 

If you have received such notices from the department then do visit us – Taxmantra.com-ITR filing for assistance.