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Tax Notices You Might Get On Filing Returns

Adhil Shetty
Tax notices

The income tax returns (ITR) filing season has come to an end. There could be a possibility that even if you filed your returns within the deadline, you might receive a tax notice from the I-T Department for varied reasons. From a mismatch in TDS amount to not reporting bank account details, one can receive tax notices from the I-T Department asking for a rectification. Let’s look at some of the common reasons for receiving a notice from the I-T Department.

Mismatch in the TDS amount

If there is any discrepancy in the TDS amount deducted by the employer and the amount mentioned by you in the ITR, the I-T Department might send out a notice asking for an explanation. Such mistakes are common when there is a change in job during the concerned financial year.

Using the wrong ITR form

Taxpayers sometimes choose the wrong ITR form for filing their returns. The I-T Department identifies such cases to be defective and asks the taxpayer to file a revised return within a date as mentioned in the notice. If the taxpayer is unable to file the revised return within the stipulated date, the I-T Department may ask the taxpayer to deposit interest for delay in filing.

For verifying the document

The Income Tax Department may seek certain documents based on the data you have provided in your ITR. If there is a reduction in tax liability, the I-T Department may ask the taxpayer to produce original documents within a date mentioned in the notice.

Not clubbing all incomes

If you fail to club all the incomes generated in a financial year including the income earned by a minor child and interest earned from assets gifted to spouse, you might receive notice from the I-T Department. For example, if you have gifted Rs 1 crore to your wife and there is an interest income coming from it, then it needs to be clubbed with your income.

Missing out investment details

Taxpayers often do not mention tax-exempted income from investments such as LTCG from equities. It is important that you mention all taxable and non-taxable investment details while filing for returns. Failing to do so could invite a notice from the I-T Department asking for revised filing.

Discrepancy in demonetisation bank deposit details

All the cash deposited during the demonetisation period needs to be mentioned while filing ITR. Concealing such information may cause the I-T Department to send you a notice, asking you to explain the reason for the discrepancy.

Failing to declare deemed income from vacant residential property

If you own more than one residential property, the ones that you are not residing in are either let out or deemed let out. The deemed income from such assets needs to be mentioned while filing the ITR. The deemed income of such houses is determined on the basis of the value of similar houses. Failing to report such incomes in the ITR may invite a notice from the I-T department Tax notices are usually sent out for the different reasons mentioned above. They are usually sent out within six months of filing returns. However, you might also receive a notice for a return filed earlier, in case there’s need for rectification. (The writer is CEO,

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