What Are Income Tax Notices and What Do They Mean?
What do these income tax notices mean
There are many types of income tax notices taxpayers may be received, but each corresponding to a particular reason. You could get a notice ,if there is a not any match in your TDS and income details. As a taxpayer, you should know about the following types of notices and also what they mean . Here is what these common notices under different sections mean.
- Section 131(1A)
- Section 133A
- Section 142
- Section 143(1)
- Section 143(2)
- Section 148
- Section 156
What should I do after receiving a notice of income tax
The following actions should be taken when you get a notice under any of the aforementioned sections:
- To determine the reason for sending the notice, carefully read notice.
- Verify the notice's essential information to be sure it is for you. To prove that it was sent to you, the notice needs to include your exact name, PAN Card number, mobile number, email address, etc.
- Find out if there is a discrepancy in your income tax return that led to the notification being delivered.
- In order to avoid fines and legal action, you must respond to the notice within the allotted time frame.
- Get expert help.
What are the most common reasons of notice
The following are the most typical reasons why you could get an income tax notice:
- Inconsistency in the stated amount of TDS.
- a mistake in your tax return.
- not submitting all required paperwork.
- failure to file your tax returns.
- When you make investments in your spouse's name but fail to disclose this on your income tax returns.
- If significant transactions of high value were made throughout the fiscal year but weren't properly disclosed in the income tax return.
- If the assessing officer examines your income tax return at random.
- the improper reporting of long-term capital gains from equities investments.
- If the person fails to disclose any income or files their income tax return using the incorrect form.
- If your refunds can be used to offset the tax due.
- If you have intentionally avoided paying taxes in the past.
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