Reasons to get a Notice from the Income Tax (IT) department
Notice from the Income IT department

Reasons to get a notice from the Income Tax (IT) department
1. For delay filing I-T return as per section 139(1)

If you have not filed your return by the deadline, you will receive a reminder notice from the income tax department. You get this notice before the end of the assessment year for which the return is due.
2. Misreporting LTCG from equity

You need to report any realised long-term capital gains (LTCG) on listed equity and equity-related mutual funds at the time of filing ITR. LTCG above Rs 1 lakh in a year on listed equity and equity-related mutual funds on which STT has been paid will be taxed at 10 percent. Reporting LTCG on equity can be a bit complex for taxpayers from the financial year 2019-20 onwards.

3. For TDS claimed not matching with Form 26AS

While filing ITR, the TDS should ideally have to be the same in Form 26AS and Form 16 or 16A. However, there can be several reasons why some details may mismatch. Notices for TDS mismatch are issued under section 143(1). The reason for getting this notice is a mismatch in the TDS reported by the deductor to the revenue authorities and the TDS claimed in the return of income by the assessee.
4. For non-disclosure of income

Revenue authorities obtain information about income of assesses from different sources like banks, employers, tenants, mutual exchange of information between countries etc. If you have not shown some income in your ITR, then you may get a notice from the income tax department if they detect the non-reportage. Notice is issued under section 139(9) or 143(1) for non-disclosure of income.
If the income tax department receives any information that some income such as bank interest income or income from shares, etc. has not been disclosed by you and the tax man is able to confirm the same, then the income tax department will l send you a notice for non-disclosure of income.

5. For not declaring investments made in the name of spouse

At times, it may happen that you would have made investments in the name of your spouse but have not shown the income from those investments in your return. In such a scenario, any income from such investments can be taxable in your hands and you have to declare it at the time of filing returns. For instance, as per the income tax law, if an asset is acquired in the name of the spouse through the income of the taxpayer.

6. For filing defective return

If you do not file the income tax return in the correct form, you will receive a defective return notice from the income tax department. You get a defective return notice under section 139(9) of the Income Tax Act. Once received, you need to respond to it within 15 days from the date of receiving the notice. In a scenario like this, if you have incorrectly filed your ITR, you may need to file a revised ITR. You must try filing the revised ITR form.

7. If you have done high-value transactions

You may receive a notice if you have done high-value transactions. The income tax department identifies taxpayers who have made high-value transactions in any financial year but not yet filed an income tax return. The department can ask you to mention the source of funds for making such high-value transactions. For instance, if you made large transactions through your credit card, made huge financial investments.

8.For setting off refunds against remaining tax payable

If you have claimed a refund on the tax paid but there are still some previous tax dues payable by you, the Assessing Officer (A.O) may send you a notice. The A.O will give an intimation in writing to such taxpayer of the action proposed to be taken regarding the refund claimed. The A.O can ask for the pending demands from the previous years to be adjusted with the refund amount.

Drafted by
CS.A.Maniraj.,B.Com.,ACS.,CA(Fin), Independent Director 
Certified CSR Professional., Certified GST Professional.

Reasons to get a Notice from the Income Tax (IT) department
Maniraj Anantham 5 December, 2022
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