Got an income tax notice?
You don’t need to stress over it. MyTaxpal is here to help. Addressing an income tax notice couldn’t get easier!
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Are you filing an IT return because of the following reasons?
Before worrying about an income tax notice from the tax department, you should know whether you are required to file a return. Here are the reasons you should do it:
8. Spending more than Rs. 2 lakh on international travel
When May Tax Payers Get An Income Tax Notice
Did you know that you can get an income tax notice for various reasons? Here are a few possibilities you should be aware of:
Failing to file your ITR
Not disclosing income or a part of it
Errors or discrepancies in your returns
TDS values and filed income tax returns show a mismatch
Need to provide specific documents or information
Potential audit under section 143(1) of the IT Act
Investing in the spouse’s name and not mentioning it in ITR
Not reporting high value transactions in the return
Failing to report capital gains/losses from equity/debt investments
Using a wrong income tax return form
Tax evasions in previous financial years
Income tax notice on not reporting sale/purchase of property
Liability for the self-assessment tax
Another other reason an assessing officer deems fit
Mismatch with AIS/TIS
Calling for Information and Scrutiny Notices
Information and scrutiny notices arise from previous filings and require verification of such claims in tax returns. These include:
Information Requests
The Income Tax department may send a notice to taxpayers to verify certain details or claims in previous tax filings.
Limited Scrutiny
Limited scrutiny refers to the in-depth checks of certain aspects of the tax return, requiring the taxpayer to provide additional documentation or explanations.
Full Scrutiny
A full scrutiny entails the comprehensive examination of the entire tax return to verify the accuracy and authenticity of a claim.
APPEAL AND EX-PARTE ORDER NOTICES
A disagreement between the taxpayers and tax authorities on tax-related decisions leads to an appeal. It entails a legal process to resolve the dispute and ensure fairness. Appeal cases can play a key role in interpreting tax laws and setting precedents for future cases.
A taxpayer can file appeals for different reasons, such as:
Ex-Parte Orders
Incorrect penalty raised by the IT department
Incorrect Demand raised by department
Rectification not considered
Apparent mistake from record
Any disallowance by CPC true to the fact
Appeal filings start with CIT(A). After an unfavourable outcome here, the taxpayer can file another one at the ITAT Tribunal and more at the High Court and Supreme Court if rejected every time. Once appeal is filed, you should respond to each and notice under :”E-Proceedings” Tab. Failure to respond an get you an Ex-Parte order.
Notices include:
Appellate Notices
When someone disagrees with a decision of the department and wishes to file an appeal, they can expect an appellate notice.
Ex-Parte Orders
These notices indicate that a decision has been made without a person’s individual participation or compliance.
Seeking Rectification
Rectification notices seek the correction of errors or omissions in previous proceedings by submitting supporting documents.
PRICING
Appeal Cases
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For 1st & 2nd Appeal
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Appeals that can be conducted through online tax portals, without requiring a physical visit
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ITAT Appeals will be charged separately, depending upon location & availability of tax consultant
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For cases where you cannot proceed with simple Rectification, Revise Return, Feedback
Rectification / Revised / Defective
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Applicable to rectifying defects, revisions, adjustments, HVT Notice, adjustments, Form 67 defects,26AS-AIS/TIS Mismatch etc.
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Major overhauls or replacements beyond basic rectification
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If the ITR plan fee is higher than the Notice fee, the higher of the two fees will be applicable
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Full payment upfront
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This pricing plan covers a two-time rectification / revise / defective service for each eligible customer.
Routine Notice
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For providing a simple response and cross checking your filed ITR.
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Applicable for Risk Management Notices, Refund Re-issue, Simple Response to outstanding demands, E-Campaign Response etc.
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For revise filing due to omission of income or taken incorrect deductions, plan will change accordingly
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For Agree/Disagree Responses.
Scrutiny Cases
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Comprehensive services for scrutiny cases, including document review, preparation of responses.
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NOTE: Scrutiny is done by the tax department on a random basis. The filing of income tax returns (ITR) OR the type of sources of income OR type of ITR Form are not related to this process.
Calling For Information/Seeking Clarification
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Assistance in seeking clarification or providing additional details in response to :
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Financial Transactions
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Deductions
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F&O Trades
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Unreported Income
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Misreported/Underreported Income
Scrutiny Cases (ITR Filed By My Taxpal)
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Special rate for scrutiny cases where myTaxpal has already filed the Income Tax Return (ITR) on behalf of the client for that particular A.Y. only.
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NOTE: Scrutiny is done by the tax department on a random basis. The filing of income tax returns (ITR) OR the type of sources of income OR type of ITR Form are not related to this process.
How to Deal With an Income Tax Notice
Have you got an income tax notification? Stay calm because a notice is not always a reason to stress about. Here are the steps to deal with a notice effectively:
- Read the notice: You should understand what it means and why it has been sent in the first place
- Check details: Dig deep to check if the notice has your correct name, address, PAN number, and assessment year
- Look for discrepancies: Find out the reason for the notice being served by checking your income tax return for discrepancies
- Respond to the ITR notice: Since there is an income tax notice time limit, responding before the deadline can save you from penalties and prosecutions
- Seek expert help: Professional help is essential to ensure that your response is accurate and backed by adequate information
Bhupinder SinghFounder, German Connect