Received an income tax notice and unsure what to do next? Don’t worry! Our detailed guide breaks down why salaried employees might get a notice, the common types, and step-by-step instructions on how to respond effectively. Stay informed and handle tax notices like a pro—read on to learn more!
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Are you a salaried employee who received a notice from the income tax department? First of all, there is no need to panic. The tax department may send a notice for a variety of reasons. As the top income tax consultant Gurgaon, we provide expert consultation on complex topics like GST registration in Gurgaon and cross border transactions. In this blog, we will explain in detail about income tax notice for salaried employees and what to do after anyone receives income tax notices:
An income tax notice is an official communication sent to taxpayers by the income tax department, about matters of income tax returns. The reason behind the notice may be as simple as small inconsistencies found in filed returns or for bigger reasons like failure in tax filing returns.
A notice can be issued to a salaried individual after filing ITR for numerous reasons. After you receive this notice, be sure to first authenticate the notice from the tax department. After this, make sure to respond to the notice within the time frame mentioned. As the best tax consultant in Gurgaon and chartered accountant firms in Gurgaon, we are here to help you understand the different reasons behind receiving the notice and how to respond to income tax notices. Keep reading to learn more:
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There are different types of income tax notices issued to individuals for different reasons. If you are a salaried employee and have received an income tax notice, then let’s find out why:
If your income which you have reported does not match with what other sources have stated, such as the bank or employer, then you will need to report to the tax authorities. You might receive a notice that would require you to clarify the information you provided in your income tax return.
If you do not file your income tax returns, or file them late, then a notice be issued from the income tax department which will sent to you. Also, if there are any outstanding tax dues or penalties not paid by the taxpayer, then they will receive a demand notice under section 156 of the Income Tax Act.
If any income sources are left unreported within the filing of income tax returns, such as rent, income from side gigs, and another income source, then a notice under section 148 will be issued from the income tax department.
It is important for you to properly mention any deductions or exemptions within income sources accurately, or you might receive a notice. The Income Tax Act considers it a violation if deductions are understated or overstated.
Using the wrong form to file your income tax return makes your ITR filing invalid. The Income Tax Department will send a notice if you use the wrong form.
If you engage in a high-value transaction, then you will be required to mention that in your income tax return filing. Failing to do so will result in a notice, as stated by the Income Tax Act.
If the Income Tax officer requires additional information from you and feels that there is a need for a detailed scrutiny examination, then they may issue a notice for such purpose. You will be required to provide all essential documentation and information required for the assessment.
If the taxpayer ignores previous notices sent by the Income Tax Department, then tax authorities may send another income tax notice. If you have taxes due from previous assessment years, then you will receive a notice under section 245 of the Income Tax Act.
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Now that we are aware of the different reasons, how do we respond to the income tax notice? Read here to know how to respond to the notice issued by the income tax department:
Read all the basic information first, to make sure the reason behind why you received the income tax notice.
After you are done reading the income tax notice, gather the necessary documentation required to respond to the notice.
Take note of the deadline mentioned in the notice to ensure you do not miss it, and respond to the notice in time.
By consulting with income tax experts such as consultants in DSRV India, you will be able to quickly complete the process while also ensuring there are no more errors and discrepancies present within the response to the notice.
Always make sure to submit supporting documents as evidence for the response, This will help the income tax officer confirm that you have filed the income tax return properly.
After the submission of the response, make sure to monitor the process carefully. This will help you to stay alert about any further responses that you may receive from the income tax department.
Be active about checking your online tax portal and emails to ensure you are up-to-date with the responses you receive from the income tax department.
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The income tax notices a salaried individual may receive are dependent on many reasons. It is important to make sure to respond within around 30 days of receiving the notice or as mentioned by the number of days mentioned in the notice. To stay complaint with the laws and regulations, make sure to read the notice carefully and respond as soon as possible.
Reach out to our tax consultants at DSRV India. We will help clear your doubts and queries to ensure your income tax returns are filed with no compliance issues!
Read about income tax notices for salaried employees and learn about the types of notices issued, the reasons behind them, and how to respond to them.
Discover the 8 key reasons you might receive an income tax notice and learn essential steps for a timely and compliant response. No need to panic!
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