Even if you have faithfully paid all your taxes and filed your income tax return, you can still receive notices from the Income Tax Department. But don’t worry; there are various other reasons you can receive an Income Tax Notice. Let’s have a look at them –
Inaccurate Information in the Income Tax Return
Suppose there is any discrepancy in your personal details or income details. In that case, you shall receive a notice asking you to disclose your income and asset details both within India and outside India.
Read Also : Bank Account under Income Tax : Questions and Answers
A discrepancy in Declared Income and Actual Income
You might also receive a notice from the Income Tax Department if the department suspects that you have not reported all your income. In such a case, you must prepare all your income proofs, paychecks, invoices, and bank statements.
Unexpected Changes in Incomes and Investments
Any substantial increase or decrease in income levels might attract the attention of the Income Tax Department. If your bank account consists of various high-value transactions, you might receive a notice from the Income Tax Department.
Unexpected Inconsistencies in TDS
The TDS mentioned at the time of filing the ITR must correspond to the amount mentioned in Form 26AS and 16A. If there is any difference between both the amounts, you can receive an Income Tax notice under section 143(1).
For Review and Evaluation
You might get a notice under section 143(2) if your ITR is scrutinized. It could be due to discrepancies or incorrect reporting. Ensure you reply as soon as possible, or the department could penalize you.
Read Also : Avoid income tax notices | Report bank FD interest on your ITR
Delayed ITR Filing
If you don’t file the ITR by the due date, you might receive a notice from the Income Tax Department for delayed ITR filing.
Payments of Refunds Against Outstanding Debts
At times, you might forget to include certain interest income. However, the Income Tax Department quickly notices it and sends you a notice stating that any tax due will be deducted from the Income Tax Refund claimed.
Tax Evasion in Prior Years
If you have evaded taxes in the previous years and not in the current year, you might still receive a notice from the Income Tax Department under section 147 of the Income Tax Act.
