ITR 2024: The deadline for filing Income Tax Returns (ITR) ended on July 31, with around 7.28 crore people in the country submitting their returns. Many taxpayers are now anticipating refunds. However, some may receive notices from the Income Tax Department. These notices are sent to those who provide incorrect information or make false claims in their returns. The notices are usually sent via email and can address issues such as delays in filing ITR, non-disclosure of income, tax evasion, or selecting the wrong form. Here’s what to do if you receive a notice from the Income Tax Department:
What should you do after receiving income tax notice?
- When you receive a notice from the Income Tax Department, the first step is to stay calm. Receiving a notice doesn't necessarily mean you have done something wrong. It is important to read the notice carefully to understand why it was issued.
- The department issues notices under various sections of the Income Tax Act, 1961, each for different reasons.
- These notices may request additional information, highlight errors in your tax return, or demand outstanding taxes. If you haven't made any mistakes, there’s no need to worry. Simply provide an accurate response to the notice. If the department is satisfied with your explanation, the matter will be closed. If not, you will be required to pay the outstanding tax.
Check this information when you receive a notice
- It is also important to verify the authenticity of the notice.
- Verify all the details in the notice from the Income Tax Department, such as your name, PAN number, and assessment year. Ensure that the notice is addressed to you and pertains to your tax filing.
- To authenticate the notice or order issued by the Income Tax Authority, visit the Income Tax e-filing portal and click on 'Authenticate the notice/order issued by ITD' under 'Quick Links'.
- Only respond to the notice after verifying its authenticity, as there are many cyber frauds using fake income tax notices to deceive people.
What to do after verification?
- Identify the reason for the notice. It could be for various reasons like mismatched details, non-disclosure of income, incorrect deductions claimed, or delays in filing.
- Collect all relevant documents related to your income, deductions, and any other information that might be pertinent to address the notice.
- Notices often have a specified deadline for response. Ensure you respond within the given timeframe to avoid further penalties or legal action.
- If you are unsure about how to respond or if the notice involves complex issues, consider consulting a tax professional or a chartered accountant.
- If the notice requires you to correct or update your information, do so accurately. File a revised return if necessary.
- Maintain a record of all correspondences with the Income Tax Department, including the notice, your response, and any subsequent communications.
- If you are expecting a refund, you can check the status on the Income Tax Department’s e-filing portal.
Also Read: ITR 2024: Waiting on your income tax refund? Here's when you can expect money
