Sometimes, you may receive an Income tax notice. You will wonder?.I have paid my taxes then why there is a notice from the tax department. Well, we will answer your queries here.
What is income tax?
When is a person being contacted for income tax notice?
How to check the validity of income tax notice
Income tax notice checklist
What is income tax?
Income tax in India is a tax paid in conjunction with the amount of revenue or gains during a financial year by individuals or organisations. Everybody in India who earns or receives income is taxed. The revenue can be both actual and abstract. The Indian Government shall determine which corporate tax and income tax obligations are levied on individuals. Many are subject to higher income tax rates. The taxable income levels are updated periodically, taking the price levels into account.
When is a person being contacted for income tax notice?
1. Dispute in TDS calculation:
The miscalculation of TDS is among the most frequent problems leading to income tax. An employer or deductor frequently fails or is incorrect to send TDS returns, leading to receipt of a notice of income tax.
2. The ITR discrepancy:
If the difference is between the amounts reported in the returns, the difference has to be explained.
3. Certain documents are requested:
The department of income tax may often require such documents for the tax return filed. Upon receipt of this submission, enter without further delay the various necessary documents.
4. In the case of no tax returns:
It can be used to remind the evaluator who has failed to file the ITR.
Rs 5000 penalty for the tax returns which have been deferred. Likewise, 1% interest on unpaid taxes every month from the due date.
5. The properties were not disclosed:
If the assessee’s total assets are more than Rs 30 lakhs, he/she is subject to payments of wealth tax at 1% of the asset’s overalls.
In this case, the asset covers land, house, cars, gems, etc.
How to check the validity of income tax notice
If the tax collector is not happy in the submission in the Income Tax Returns (ITR) or a question is asked, the Central Direct Tax Board (CBDT) has provided taxpayers with a facility to check the validity of all the letters that are deemed null and void by the notice sent to the tax collector without a documentation identification number (DIN).
For clarification of the validity-
1) Click on the link on the “Notice / Order issued by ITD” on the left-hand side of the page to go to the Income Tax section.
2) You can check for and authenticate an IT department updates or orders in this section. You can look for a PAN, evaluation year, notice, and month, as well as your issue year by searching for a document number.
3) It’s the best way to search by document number but if you don’t know it, you’ll have the second choice. However, you have to know which section and on which month and year a notice or order has been given.
4) You will then be able to check the authenticity of the document until you enter all the information as seen above.
Income tax notice checklist
- The taxpayer should respond within thirty days from the date of notice received, after an Intimation Notice under section 143(1) of the income tax act 1961.
- If you fail to respond within the defined time-span, the necessary modifications to your ITR will be carried out without giving you a chance.
- The taxpayer should check the name, address, and PAN number listed in the notice when obtaining the notice.
- In the same way, the appraisal year referred to is checked and the e-record number is confirmed.
- You can only file a revised return if you made an error in the initial ITR filing. It must be filed within 15 days if you intend to amend the appeal.
- You can only file the correction report when the order issued by the income tax department has found a fault or mistake.
