Filing your Income Tax Return before the July 31 deadline does not necessarily mean that you are done with all tax formalities. According to reports from NDTV Profit, some taxpayers may receive notices from the Income Tax Department even after submitting their returns on time. The department checks ITRs against data from banks, employers and other sources, and can issue notices for three major reasons regardless of timely submission.
The most common reason for tax notices involves income reporting discrepancies. As reported by NDTV Profit, if there is a mismatch between the salary mentioned in your ITR and the amount reported by your employer in Form 16, you could receive a notice. Similarly, if income details in your annual information statement do not match what you have declared in your ITR, the Income Tax Department may ask for clarification. These mismatches can occur due to incorrect reporting or unresolved discrepancies between different sources of income information.
Tax deducted at source (TDS) or tax collected at source (TCS) mismatches can also trigger notices from the tax department. According to NDTV Profit, the data can be incorrect if the dedctor has not filed or corrected its TDS return, or if the data has not yet been updated in the taxpayer's records. Additionally, if there is a mismatch in the TCS/TDS claims and the amount appearing in Form 26AS, the tax department can issue a notice to resolve these discrepancies.
The Income Tax Department can issue notices for incorrect form usage, defective returns, or incomplete information. As reported by NDTV Profit, claiming incorrect exemptions and deductions can also attract the department's attention if the information is not supported by submitted documents. These errors can result in notices requiring taxpayers to file revised returns to rectify the defects and ensure proper compliance with tax regulations.
If a notice is issued, taxpayers must first verify the authenticity of the document on the official income-tax e-filing portal using their PAN Card, tax documents and document identification number. According to NDTV Profit, once the notice is verified, taxpayers should read through the notice to understand the reasons for issuance and gather supporting documents such as Form 16. If your return is found defective, you get 15 days from the date of receiving the notice to rectify the defect. However, taxpayers may seek adjournment and request for an extension according to information available on the tax department's website. If you fail to respond within the stipulated period, your return may be treated as invalid, potentially resulting in penalties, additional interest, losing the provision to carry forward losses, and loss of specific exemptions.
