Everything you need to know about income tax notice and how to go about it. Read on.
It’s that time of the year again. Be it your email inbox that keeps receiving reminders from various websites or your best friend constantly pestering you, everything just leads to one thing—income tax returns.
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In case you haven’t filed it yet, don’t worry! You still have some time till 31st July. Have you ever thought why the Income Tax Department sends out tax notices? What if you ever receive one? Will you just panic, drop everything and leave? Too many questions, we know. These are crucial if you really want to understand everything about tax returns.
Don’t worry! We’ll tell you everything right from the reasons you might receive a tax notice in future to steps you need to follow in case that really happens.
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Let’s begin with the reasons.
Wrong Income/Asset Details
In order to block as much black money as possible, the Income Tax Department has been following a sequence of steps. There’s a chance that you might get a notice demanding you to declare every bit of your income and asset details both in and outside India.
A Standard Notice
If you receive this, there’s nothing to worry about. This notice is pretty standard and is sent out only if there’s some minor miscalculation in the declared income in return. You need to be warned about your mathematical abilities mainly, nothing else.
A Prosecution Notice
Now, this is something you need to worry about. In case you fail to file your returns, the Income Tax Department might send you a prosecution notice under Section 143(2).
Now that you know everything about various scenarios you can receive a tax notice in, you also need to know how to fix it. Don’t worry! Like we mentioned before, there’s a fix for this. Here’s all you need to do.
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When the Income Tax Department sends you a notice, it usually happens over email. They don’t just send you a notice, they also give you a set of instructions to follow. All you have to do is follow them. Where do you find these instructions? That’s easy too. Just go to your income tax account and check out ‘My Pending Actions’. From there, go to ‘For Your Action’ and just like that you’ll know what exactly needs to be done. Clear instructions will be there pending in your name. It’s all simple from here, right?
Next time, before filing your income tax returns, make sure you enter everything correctly. A small mistake from your end can lead to an income tax notice. We’re sure you don’t want that to happen, right?
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Psst…need more information on income tax? We have that and a lot of other dope on other financial products as well.