Who can get an income tax notice? | Fusion - WeRIndia

Legitimate tax payers need not fear about a notice from the income tax department. But, the people who do not pay tax to government or do not file income tax returns should fear the notice.

Receiving notice from income tax department is a nightmare to many people especially when they do not file tax properly.

After demonetization, huge deposits were made by several people in their bank account. Most of them received a notice from income tax department. In the wake of mass issuances of letters from IT, it is a good idea to know who can receive a notice from the IT department or when can one receive a notice.

Here are the reasons to get a notice from the IT department.

You have to file income tax returns if your income is more than the taxable income within the prescribed time. Even if your income does not exceed the taxable income, you have to file returns in case TDS has been deducted by your employer or the bank. If you do not file your returns, you will have a chance to receive notice from the tax department.

If IT officials found any discrepancy or mismatch in the TDS, they will send notices to clarify the issue. They will also send notices when there is a discrepancy in the returns due to non-disclosure of certain incomes like interest on fixed deposits.

Deductions should be shown in the right sections or else you may receive notices. So, to avoid this situation, disclose all your income under the specific heads and show all your deductions accurately.

Incomplete information while filing return is also one reason for income tax department notices. If you buy any assets in the name of your family and forget to disclose the returns in income tax returns, there is a chance of receiving letters from IT department.

High value transactions beyond a prescribed limit will also attract the attention of IT officials. You must be ready to submit the proofs, in case tax officials ask so.

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