The last date for filing income tax returns was July 31. The government is currently reviewing income tax filers, and it is giving refunds to individuals from whom TDS was taken in the previous financial year. Some taxpayers may have received a refund. However, some people received the Income Tax Department's notice. When the income and tax calculations are incorrect, this issue arises.
How the IT department scrutinizes returns:
Let us inform you that this time, software powered by artificial intelligence is being used by the Income Tax Department to examine the returns. Notice is being issued to the taxpayer in view of this. A notice may be issued if multiple claims are submitted simultaneously under different aspects of the Income Tax Act. The taxpayer in this situation must check or make changes to the ITR.
Fines up to 200 percent!
According to Section 80G of the Income Tax you can benefit from tax exemption on a range of expenses. Small business owners or taxpayers requesting an exception under this section are being informed more frequently. This includes funds used for charity and disaster relief. If the tax and income calculation in this case—whether it involves salary class or business class—is wrong, the Income Tax Department may issue a notice. In case of disturbances, a fine of up to 200 percent may be applied.
You have to do this in case of notice:
If you have received a notice from the Income Tax Department, first of all, collect the papers which are shown as investments. Within 15 days of the date of receipt of the notice, update the ITR file based on these documents. If there are salaried workers, the deduction on Form-16 should be matched. In Form 26AS, reconcile each deduction listed in your ITR. TDS should be the same in both Form 16 and Form 26AS. In case there is a difference, request your company to fix it.
