The last date for filing income tax return (ITR) is still far away. However, taxpayers should not wait for the last date. It is also necessary to take full precautions in filing ITR. In the ITR form of the taxpayers, the notice of the Income Tax Department can come on giving incorrect information, incorrect calculation of income or hiding any income. The Income Tax Department selects some income tax returns for scrutiny. These may also include your return.
Identification of 1.65 cases for scrutiny
The Income Tax Department has selected about 1.65 lakh cases for assessment under section 143 (2). Experts say that taxpayers need to understand that the process does not end only by filing income tax returns. The Income Tax Department can issue notice to taxpayers if there is any disturbance in scrutiny or assessment. Income tax department has a special eye on high value transactions.
Notice for not matching data of TDS
If the information about TDS given in Form 26AS or Annual Information statement (AIS) does not match with the information given in your ITR return, then the Income Tax Department can issue notice. Such disturbances are seen in the income tax retin of salary taxpayers and freelancers taxpayers. Therefore, it is necessary to check TDS data well in filing returns.
Notice can also come on hiding income
Many taxpayers forget to tell about some of their income in income tax returns. If your rent, savings account interests have been incurred or a capital gains, then it is necessary to tell about it in ITR. If there is any income from investment in cryptocurrency or an income from investments abroad, then it is necessary to tell about it in ITR. If you do not do so, you may get the notice of the Income Tax Department.
Notice on fraud in claiming deduction
Many taxpayers claim deduction to reduce tax. Some deductions also claim which they are not entitled. The deduction claim of 80C, 80D or HRA is usually done. However, it is necessary to have proof for this. If the taxpayers have claimed a deduction that he is not entitled or does not have a proof, then the Income Tax Department can issue a notice to him.
Never file in wrong form ITR
Caution is also necessary in selection of ITR form. If a taxpayer has filed an ITR in the wrong form, then he may get a notice. Therefore, before filing the return, it is important to understand which form will be right for you. ITR Form 1 is the easiest form, which is also called comfortable. But, it can only be used by people who have a source of income and only a property.