Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: due date for vat payment :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: list of goods taxed at 4% :: VAT RATES :: cpt :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: empanelment :: TAX RATES - GOODS TAXABLE @ 4%
 
 
Direct Tax »
 GST is a transformational business process reform. All companies will have to change
 GST Council relaxes return filing rules for July-Aug
 Here's how self-employed individual can file tax return with ITR4
 CBDT mulling new system of jurisdiction-free I-T assessment to curb corruption
 CBDT draft notice on computing tax liability of foreign firms
 CBDT forms task force for jurisdiction-free income tax assessment system
 Aadhaar must for filing returns from July 1: CBDT
 Aadhaar mandatory for filing I-T returns and obtaining new PAN card from July 1: CBDT
 Central Board of Direct Taxes cuts profit margin for safe harbour rules
 What is TDS and how does it work?
 Income tax return: Do super senior citizens have to file returns?

Five reasons you may get an income tax notice
December, 21st 2015

The tax department has identified roughly 12 lakh people who have not filed their tax returns. Many of them are innocent offenders, who may not even know they are supposed to do so. ET Wealth reached out to tax experts to understand the factors that can lead to a tax notice. Here are the main reasons:

MISMATCH IN INCOME AND INVESTMENTS, EXPENSES

If there is a mismatch between the in- come you have declared in your tax re- turn, and your investments and expenditure, you are likely to get a scrutiny notice. Banks, mutual funds, credit card companies and other establishments are supposed to report certain high-value transactions to the tax department. They have your PAN and other details, so there is no way one can sneak past them.

TDS NOT CREDITED TO TAXPAYER

You could get a notice if there is a mismatch in your TDS and income details. Check your Form 26AS online to verify if all the tax deducted on your behalf has been credited to you. "You should check it at least once a quarter and reconcile the entries with your own records," advises chartered accountant Surya Bhatia.

SHARP DROP IN INCOME

One obvious red flag is a sharp drop in the income of the taxpayer. This can be for a variety of reasons, but it immediately alerts the tax department. However, this is more common in case of businessmen and traders. For salaried people, it could be because the taxpayer lost his job, took leave without pay or went on a sabbatical during the year. More often, it is because he changed jobs mid-year and declared income from only one employer. This is a sure reason for getting a tax notice.

EXEMPTIONS SOUGHT ARE VERY HIGH

Refunds are almost considered an anathema by the tax department. Suspicions are aroused when you claim too big a refund in your return. While this is usually in case of businessmen and traders, a salaried taxpayer may find himself in this sit- uation if he has not furnished the proof of his tax-saving investments and other deductions to his employer on time. If tax has already been deducted and deposited with the government, the only way is to file a return and claim a refund. If the re- fund is too big, expect a scrutiny notice.

NOT FILED THE TAX RETURN

Thousands of individuals don't know if they have to file their return. Some believe they can skip filing if TDS has been paid. Others believe that if their income falls below the basic exemption limit after availing of various deductions, they don't need to file returns. "Even if the TDS has been deducted, , you are not absolved from filing your tax returns," says chartered accountant M.K. Agarwal. Some taxpayers who file their return online without digital signature think their work is done once the tax return is uploaded. They don't realise that if the ITR V is not submitted within 120 days of uploading, the return will be deemed invalid.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software Development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions