Reasons for Income Tax notice
- notice from the income-tax office; one of the main reasons is high-value cash transactions. If you make high-value cash transactions, there is a high chance of getting a notice from the Income Tax Department. The cash-related made in banks, mutual and property registrations etc. Now, Income Tax Department has signed an agreement with all most all government departments to obtain the high-value financial records, to cross verify whether it has been disclosed in their personal tax filing or not.
Shares, mutual funds, debentures, and bonds related cash transactionsIf you are an investor in mutual funds, stocks, debentures must ensure that cash transactions in these investments does exceed INR 10 lakh. In case any expense or transaction has been listed as a high-value transaction, verify the AIR section of your Form 26AS. Other reasons are: Delay or non-filing of Income-tax return Tds claimed is not matching with 26AS Error in the tax return filed Reporting abnormal income, deductions or refund
Types of noticesUnder section 131(1A), the Income tax officer has reason to suspect that income has been concealed. U/s. 133A, For survey or scrutiny of accounts. U/s.142, For not filing an income tax return. U/s. 143(1), For adjustment or if an error or incorrect information is detected in the return filed U/s.143(2) For regular assessment after a detailed inquiry by Income-tax officer. U/s.148, For reassessment if income-tax officer believes some income has escaped assessment. U/s. 156, For dues (tax, interest, penalty, fine or any other sum) payable.
How to avoid the notice?Try to file the ITR on time or within the due date. Make reconciliation between actual income and reported in the 26as to avoid the discrepancy Report every income or loss including bank interest, even if there is any loss from share trading, it has to be reported in tax filing. Finally, if there is any clarification, take help from Team IN filings Team IN Filings Tax and Law Practitioners Team IN Filings is a Tax and Law firm having its office at Bengaluru specializing in Company Law, Income tax, Gst, Labor law, Export – Import, Trademark, Startup India etc. It is a professionally managed firm having a team of experienced Company Secretary, Chartered Accountant, Lawyer and Tax consultant to provide various services like Company Registration, Tax filing, Accounting, Trademark, Payroll, Audit, Roc filings, litigation and representation, transaction advisory & compliance, configuration of tax-efficient business model.
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