5 WAYS TO CREATE A SUCCESSFUL BUSINESS PITCH

Goal of business pitch is to generally secure the resources

IT Notices and how to deal with them

2017-07-10 09:26:50 | Business
Income tax department keeps an eye on every transaction made by the citizens of India. All the money that you transfer, withdraw, pay, rent etc. is kept under surveillance of the Income Tax department to suspect tax stealing, black money and corruption. On any suspect caught by the Income Tax Department on your money transaction, they issue an Income Tax notice to ask for explanation from your side. This is the first chance they provide you to self-surrender or to state whether you have been notified right or some error caused the upbringing of the notice. These IT notices are automatically generated by the software and not answering to them is forbidden. Some it may lead to heavy penalties and they may be as high as INR 10,000. So, always have an expert check on you ITR filings even if you believe to file it in the best of your knowledge.
In this article we will study the different types of Income tax notices and how to deal with them if you get one?

1. TDS amount Error Notices- While filing for Income Tax Returns, the most common mistake which we make is mismatching TDS amounts. The IT department then issues you a notice to correct your mistake and also take this as a future reference for filing correct amount.

2. Discrepancy in Return Filed- This issue may arise due to the differences you made while filing Income Tax Returns. These differences may arise due to forgetting to declare some incomes, you may have claimed a deduction under the wrong section or you may have provided incomplete information.

3. Documentation Submission Notice- Sometimes, the documents submitted by you earlier may not be complete or the department may like to review your documents. In this case the department may demand for their submission. Do the submission process immediately.

4. Tax Returns not paid for the previous years- In case you have filed your returns for the current year and have skipped the last year then prepare to receive a notice. IT department can issue you a notice on filing your returns for 6 previous assessment years. If you are not charged with such filing then reply it to the department and in case of delays, penalties are imposed up to INR 5,000 per year.

5. Undeclared income from investments- People usually save on taxes by making investments on the name of spouse, children or other close family members. Remember, home or education loan taken on the name of these may help you in tax exemption if you have declared the income you may or may not generate from these loans. If you have not declared the income generate at the first filing then you may attract a notice from the IT department demanding explanation. Assets more than the value of INR 30 Lakhs are subject to pay wealth tax at the rate of 1 percent of the amount more than INR 30 Lakhs.

6. High Value Transactions- If you make high value transactions regularly or have made one recently, then you are mandatory to update the IT department about the transactions. Failing so will lead to an IT notice.

7. Random Scrutiny- IT department now issues random scrutiny for enforcing tax compliance. In case you get one, don’t panic and submit the documents along with covering letter. Also, ask for the acknowledged copy and in case for pending dues, pay them with the current year filings. A scrutiny is usually served to the assessee within a period of 6 months form the end of financial year.

Always keep calm while reading the notice and try to understand why IT department has issued such a notice to you. Check on the basic details of receiving, about IT officer, address and confirm them. Get your documents and notices checked by an expert like a Chartered Accountant or a Company Secretariat in case you are unable to notify error. Figure out the discrepancy in the new intimation column to find out your mistake or the cause of issue of the notice. Remember to revert to the IT department without delay and with proper documents all the time.
For more assistance on legal issue visit our website www.LegalRaasta.com.



This article has been contributed by Himanshu Jain, CEO, LegalRaasta, an online portal for GST Software , GST Return Filing , GST Registration , Section 8 Company Registration , Nidhi Company Registration , IEC Registration , FSSAI License, Income Tax Return Filing, TDS Software, ITR Software
ジャンル:
ウェブログ
コメント   この記事についてブログを書く
この記事をはてなブックマークに追加
« TAX SAVING TIPS | トップ | Importance Of Food License »

コメントを投稿


コメント利用規約に同意の上コメント投稿を行ってください。

数字4桁を入力し、投稿ボタンを押してください。

あわせて読む

トラックバック

この記事のトラックバック  Ping-URL
  • 30日以上前の記事に対するトラックバックは受け取らないよう設定されております。
  • 送信元の記事内容が半角英数のみのトラックバックは受け取らないよう設定されております。
  • このブログへのリンクがない記事からのトラックバックは受け取らないよう設定されております。
  • ※ブログ管理者のみ、編集画面で設定の変更が可能です。