Got an income tax notice? Here is why you should not panic
The Income-Tax department can send you a notice for various reasons but lack of information is why most people end up worrying about it. The reason for a tax notice could include not filing an income tax return (ITR) on time, calculation errors, not reporting income correctly or even claiming excessive losses.
What if an income tax notice lands on your doorstep? It can lead to a lot of panic. Well, there is actually no need for it. The Income-Tax department can send you a notice for various reasons but lack of information is why most people end up worrying about it. The reason for a tax notice could include not filing an income tax return (ITR) on time, calculation errors, not reporting income correctly or even claiming excessive losses.
If you have not filed your return by the deadline, in such a case, you may receive an automated notice from the income tax department. You get this notice before the end of the assessment year for which the return is due.
The other reason could be mismatch in the information disclosed in the tax returns.
What should taxpayers do?
The taxpayers need to verify the information provided and confirm it with the Income Tax department. You also need to file a reply on the income tax website. The response needs to be filed within the stipulated period which is generally 30 days from the issue of such a notice to avoid automatic adjustment by the Income-Tax Department.
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It is also worth noting that the taxman also sends a confirmation notice when you have claimed a refund. You will just have to confirm the same to the department with the ITR filed for the year.
In case of changes, confirmation needs to be provided informing the I-T department that a revised return would be filed.
The tax department, will then, carry out a preliminary assessment of all ITRs filed and informs taxpayers of the result of such preliminary assessment. This assessment primarily includes verification of the tax calculation, tax payment, correction of any arithmetical errors and inconsistencies.
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