In the history of Income-tax for over 28 years, Mrs Nirmala Sitharaman, finance minister offered the biggest reduction by 10 % in the current fiscal year. Furthermore, the government has plans to benefit the long & short term capitals & domestic portfolio investors by withdrawing the enhanced surcharge for FPIs. Assumptions are made that it will count for Rs. 1,4oo crore revenue. Rs. 50,00crore shortfall on the Goods & Services Tax (GST) will be observed by any conservative estimate. This has agitated the government, former finance secretary S.C. Garg with the councils of experts indicated that during the current fiscal year the shortfall of taxes between Rs. 2 Lakh to Rs. 2.5 Lakh crore will be experienced.
First, don’t worry, every person who fills income tax gets either intimation or notice from income tax. The intimation and notice come to those email ids and phone numbers which are added in the income tax portal. Many people don’t file their income tax on their own, but they also make a mistake, they do not register their mobile number and email id with their tax, therefore essential information cannot be intimidated to them on time. If you are among them, consult with your income tax assistant and change your email id and password.
Everyone gets intimation, you just need to study what you get inside the notice. Therefore if you are worrying just you got the intimation, first check what is the content inside intimation.
Why does one get a notice from the income tax department under section 143?
When you fill the form no. 143 to submit Income Tax Return, you verify all of your income, expenses and other income. However, the Income Tax Department has all data of your earnings and expenses, they cross-check your income tax statement with their statement, if both are not equal then you get a notice from income tax. Some people show their income low and show high expenses without proof. In this case, the income tax department sends a demand notice.
Reasons for getting a notice from Income Tax Department 143(1)a
- Random Scrutiny – Income Tax Department randomly checks details and verify through their random scrutiny program.
- TDS Amount – If you have not filled correct TDS information or your employer has not submitted TDS which you are claiming.
- Mismatch in your Income or Expense – If your filled information is not matching with Income Tax Department information, you may get the notice. Sometimes it happens, when you forget to declare your other income sources, FDs interest, you may be claiming the deduction in the wrong section, or sometimes you have not filled your complete information.
- Document Verification – If Income Tax IT Department wants to check the documents of yours for verification, they send you to notice.
- Investment in the name of family members – Sometimes you invest on behalf of your spouse, and kids and the income you generate from your investment is taxable. If you don’t mention the income you generate from other sources, you may get a notice.
- High-Value Transactions – In a year, your cash deposit is 10 lacs or more, investment 2 lacs or more in mutual funds, purchase of bonds/debentures 5 lacs or more, buy or sell of the property 30 lacs or more, or you spend more than 2 lacs from the credit card. If you don’t mention these transactions, you may get an Income Tax notice.
- Wealth Tax – If you are having any asset of 30 lacs or more and you have not disclosed it. You get noticed because you are liable to pay a 1% wealth tax.
These are the reasons why one can get a notice from the Income Tax Department. To know all about the process of efiling income tax return visit our blog section.
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Article is about International Taxation.