- TDS Amount Error: A discrepancy in the TDS amounts is frequently the most prevalent problem with submitted returns. There are situations when your employer or the deductor may have filed their TDS returns late or incorrectly. Ask your employer to change the TDS amount that has been credited to you if that is the issue with your return as well.
- The discrepancy in Your Own Filed Return: Try to comprehend the difference if the mismatch relates to the amounts you declared in the returns you filed. There may be discrepancies due to:
- You might not have disclosed some revenues, such as interest from FDs.
- It’s possible that you filed a deduction under the incorrect section.
- You might have given inaccurate information.
Keep in mind that the software used by the Income Tax Department to produce these notices does so automatically. Even when you believe you have filed everything correctly, a notice may still have been sent to you. It’s always a good idea to have a professional review your notice.
- Documentation: The IT division occasionally requests to evaluate certain records from which your tax returns were submitted. Provide the requested documentation right away if such a request is made.
- Tax Returns Not submitted: If the alert is a reminder that your tax returns haven’t been submitted yet, get on it right away. You can be reminded about unfiled returns for the preceding six assessment years by the IT department. Occasionally, submitting taxes late will result in a penalty of up to Rs. 5000 per year. In these situations of delayed filing, the assessee is charged 1% interest starting on the due date if there are any unpaid taxes. If you are not required by law to file a tax return, then reply to the IT department clarifying this fact.
- Random scrutiny: To enforce tax compliance, the IT department has started randomly scrutinizing returns under section 143 (3). If you receive such a scrutiny notice, don’t panic. Just reach us for expert advice.
We’ve listed the major reasons for notices. There’re still possibilities to receive notice for the reasons not listed above.
