When an individual or entity submits an Income Tax return, the Income Tax Department examines and verifies the returns filed by you. If there is any default or any fabricated fact, the department may send a notice with this regard. The Income Tax Department, sends different notices for different defaults found in the Income Tax Return.
When one receives any notice from the IT Department, it is important to reply to such notice within the stipulated time. If the individual or entity does not reply to the notice received, the Income Tax Department may take further action.
Reasons for getting Income Tax Notice
- Delay in filing an IT Return
- Misreporting Long Term Capital Gain from equity
- For TDS claimed not matching with Form 26AS
- For non-disclosure of income
- For not declaring investments made in the name of spouse
- For filing defective return
- If you have done high-value transactions
- If your return is picked for scrutiny
- For setting off refunds against remaining tax payable
- For tax evasion in earlier years
Things to remember when you receive Income Tax Notice
- You must respond to the notice within the stipulated time.
- If any scrutiny arises, provide all the relevant details or documents on time that the department seeks from you to verify the necessary details.
- If you do not respond to the notices, then you may have to pay a huge penalty as per income tax norms.
- Also, one should file one’s return on time and pay the tax due, if any, within the specified period of time to avoid getting notices from the Income Tax Department.
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