A new way of a notice coming from Income Tax?
Many times mistakes are made in filing Income Tax returns. People make mistakes knowingly or unknowingly. If this happens, the Income Tax Department can send you a notice. This notice should not be ignored. It should be seen carefully what the notice has been sent for. Then the correct answer should be filled in. But trying to hide something even after getting the notice can cost you dearly. The department sends the notice only if you have not given any information. Now whether someone has done this due to negligence or due to some other reason, the answer will have to be given when the notice is received. This cannot be avoided. An income tax notice under Section 139(1) would be issued if the income tax return filed does not contain all necessary information or incorrect information. If a tax notice under Section 139(1) is issued, you should rectify the defect in the return within 15 days.
Have Income Tax Refund?
Taxpayers are automatically receiving online intimation from the Income Tax Department if the additional deduction is claimed in ITR resulting in an income tax refund from tax deducted at source by employers. Taxpayers are automatically receiving online notifications from the Income Tax Department if the additional deduction is claimed in Income Tax Return (ITR), resulting in Income Tax Refund from Tax Deducted at Source (TDS) by the employer. Such information is automatically generated in case of tax refunds resulting from discrepancies in the data mentioned in Form 16 and the data entered in the ITR. After issuance of auto-generated information, recipients will get 15 days to revise the return to correct the discrepancies with Form 16 or pay a 200 percent penalty if the deduction is falsely claimed. This notice is addressed to the assessee when the return is already filed and further details and documents are required from the assessee to complete the process. This notice can also be sent to necessitate a taxpayer to provide additional documents and information.
Keep deduction proof ready or be ready to pay a 200% penalty
In case of genuine claims, you need to provide proof of investment (like NPS, PPF, SSY, NSC, SCSS, tax-saving FDs, ULIPs, ELSS, etc.) and/or expenses (like life/health insurance premiums, children’s tuition fee receipts, Home loan interest, and home loan principal repayment, etc.) and/or proof of donation made, etc. This is because you may get a proper income tax notice after manual verification of auto-generated information if the ITR is not revised within a period of 15 days.
“Though the chances are slim, it can still happen,” Batra said.
In such a case, to avoid paying the 200 percent penalty, you may have to upload the investment proof in the slot provided for the same on the e-filing portal.
So, if you have made tax-saving investments or deductible expenses or donated money to organizations eligible for tax deduction under section 80G of the Income Tax Act, but have not disclosed the same to your employer for TDS benefits, so keep proof of such tax-saving investments/expenses/donations handy to avoid any inconvenience.
