If income tax is cumbersome for the average taxpayer, a notice from the Income Tax Department is almost gobbledygook for him. A common question is, what prompts the Income Tax Department to send notices to a taxpayer?
Reasons for sending a notice
There are many reasons that could trigger a notice from the Income Tax Department. Among these are furnishing incorrect information/false claims in filing ITRs. Other situations such as non-disclosure of income leading to tax evasion, delay in filing ITR, filing ITR using an inappropriate form can also lead to the ITD sending a notice to the concerned taxpayer. The ITD can also claim outstanding tax from the ITR filer. The Income Tax Department has its own ways of detecting false claims in ITRs and it promptly responds with notices.
What to do after getting a notice?
The Income Tax Department often refers to sections of the Income Tax Act and contains terms and jargons that might not be easily understood by the common taxpayer. One must read it more than once with a cool brain. If you panic, you are sure to lose your cool.
It is only within different provisions defined under sections of the Income Tax Act that notices are dispatched to taxpayers. Since the reasons could be different, so can be the notices. Often the ITD points out errors in the ITR. Sometimes, additional information is also sought from the taxpayer.
No taxpayer should worry unduly if he/she hasn’t evaded taxes or underreported income. Remember that the ITD will close the query if your response satisfies the officers.
Check details in the notice
One of the primary things to do after receiving a notice is to check whether the notice is actually meant for the recipient. This can be done by checking the PAN and name on the notice. The assessment year mentioned in the notice should also be checked.
Experts also say one should authenticate the notice/order/letter issued by the Income Tax Authority. This should be done on the e-filing portal under the section ‘Authenticate the notice/order issued by ITD’ under ‘Quick Links’. One should also be sure that communication is sent from the IT Department and not from cyber fraudsters.
To be slapped with a notice from the Income Tax Department is a nightmare for the common man. Most have no idea how to respond to one. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
