What are the most common causes of notice?
The most common causes for which you might receive an income tax notice include the following –
- Mismatch in the amount of TDS reported
- An error in your income tax file
- Lack of submission of all the documents
- Non filing of your tax returns
- When you invest in the name of your spouse and do not mention the same in your income tax returns
- If high value transactions have been done during the financial year and they have not been properly reported in the income tax return
- If a random scrutiny of your income tax return is done by the assessing officer
- When long term capital gains earned from equity investments are not reported correctly
- If any income is not disclosed by the taxpayer
- If a wrong income tax return form is used for filing the income tax return
- If your refunds can be set off against the tax liability
- If you have evaded tax in previous financial years
What should be done after receiving an income tax notice?
When you receive a notice under any sections, the following steps should be taken –
- Read the notice thoroughly to find out why it has been sent
- Check the basic details on the notice to ensure that the notice is meant for you. The notice should contain your correct name, PAN Card number, mobile number, email ID, etc. to authenticate that it is sent to you.
- Find out the discrepancy in your income tax return which caused a notice to be served, if any.
- Respond to the notice within the stipulated time period to avoid penalties and prosecutions.
- Take expert help.