Very few people have the right information about when an income tax notice is sent.
‘Income Tax Notice’ Most people must have heard about it. But very few people have the exact information about when the income tax notice is sent. Today we will tell you about the reasons due to which the Income Tax Department can send you a notice.
If there is a mismatch of income, investment, expenses ,
and if the declared income and investment and expenses are mismatched in your tax return, you can be sent a notice of scrutiny. Banks, mutual funds, credit card companies and other establishments report high value transactions to the tax department. They have your PAN and other details. So there is no way that anyone can stop them.
TDS not to be deposited
You can get notice if there is no match in your TDS and income details.
A sharp decline in income,
if the taxpayer’s income falls sharply, the tax department can be alert. There can be many reasons for falling income fast. This happens especially with business people. At the same time, this can happen in case of employed people going to their jobs or going on leave without pay.
Refunds are highly sought;
Claiming too large a refund in return also creates doubt. This is usually the case with merchants. If the refund amount is very large, Scrutiny notice may come.
Also Read: Income Tax Return: Waiting for the income tax return (ITR) deadline to increase? So read this news
Failure to file ITR
Many people do not file their returns. Some assume that if TDS has been paid, then they can avoid filing returns. Many people also believe that if their income is less than the basic exemption limit after various deductions, then they do not have to file returns.
