Filing your Income Tax Return before the July 31 deadline does not necessarily mean that you are done with all tax formalities. Some taxpayers may get a notice from the Income Tax Department. Your tax return could be flagged if the data in your ITR does not match the information the Income Tax Department has.
The Income Tax Department checks your ITR against data from banks, employers and other sources. It can issue a notice for three major reasons even if you have submitted your ITR on time.
Income Reported In ITR Does Not Match
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. 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 a clarification.
Mismatch In TDS Or TCS Credit
A mismatch in tax deducted at source or tax collected at source. The data can be incorrect if the deductor has not filed or corrected its TDS return, or if the data has not yet been updated in the taxpayer's records.
If there is a mismatch in the TCS/TDS claims and the amount appearing in Form 26AS, the tax department can issue a notice.
Incorrect Deductions, Exemptions Or Other Details
The Income Tax Department can issue a notice if the ITR has been filed using the incorrect form. A defective return or incomplete information can also lead to a notice being issued.
Claiming incorrect exemptions and deductions can also attract the attention of the tax department if the information is not supported by the submitted documents.
What To Do If Tax Notice Is Issued?
If a notice is issued, you need to first verify the authenticity of the document on the official income-tax e-filing portal. Use your PAN Card, tax documents and document identification number for the process.
Once that is done, read through the notice and understand why you have been issued a notice. Gather supporting documents such as Form 16 and submit a response to the notice within the specified time period. In some cases, such as a defective ITR, you may have to file a revised return to rectify the defect.
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