Received Income Tax Notice? No Need To Panic

The income tax department comes under the Ministry of Finance (Department of Revenue) whose primary aim is to monitor the taxpayers. There are many circumstances when there is a mismatch between the ITR filing and the transaction of the taxpayers. At this point, the I-T department issues notice against such a person.

Officials states that the income tax department can issue a notice on taxpayers in both modes of transaction, i.e., direct cash as well as digital payment.  So, the taxpayer needs to find out the real reason behind the notice and the same is available in form 26AS.

Once you find the actual reason for the I-T notice, then you can put the grievances on the official website of the Income Tax department.

How does the I-T Department match the taxpayer’s transaction?

There are many sources where the taxpayers spend or deposit the money such as Banks, Mutual Funds, the Registrar of Properties, and others. These organizations file Annual Information Report and submit the same to the Income Tax Department. Now, the I-T officials match the data with the Income Tax Returns filed by the taxpayers and AIR. If there is any mismatch, then such an authority will send I-T notice via SMS or Email.

How to respond against Income Tax Notice?

If you have received income tax notice, then don’t panic and follow the simple and quick process to put the grievances on the I-T website.

• Go to the official website of the Income Tax Department and then put your credentials to log in.
• Next, reach the Compliance Portal and here you will get an e-campaign- High-Value Transaction, click on it.
• Thereafter, click on Financial Year situated in the High-Value Transaction section and soon, you will get the information summary, click on the OK button.
• Next, you will get 5 options and you need to take the action as per the option that suits you. For instance, if you select option C (Information related to other Person/Year), then you will have to provide the information of that person who did the transaction.
• Now, submit the form and for future reference, you can view the same on the e-campaign portal of the I-T Department.

Find how much gold you can hold as per Income Tax Rules

Moreover, If you want any other guidance concerning ITR Filing, please feel free to talk to our business advisors at 8881-069-069.

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