The Income Tax Department’s Artificial Intelligence software is alerting taxpayers through an email notice in order to re-verify and collect evidence related to the deduction made by the taxpayers to get tax exemption and especially TDS exemption. In the processing of Income Tax Returns filed till July 31, this year the department is finding out on the basis of AI that the deductions claimed by the taxpayers whose TDS was deducted, to get this amount as refund. whether they are correct or not.
If a taxpayer has claimed multiple refunds under different sections, it is possible that he is receiving such a notice. In this regard, many taxpayers are getting a mail, saying that if the taxpayer does not have proof of investment or the taxpayer has taken the wrong exemption in the return, then immediately verify the same and revise the return. The purpose behind these notices is to reduce or correct the refund.
- Notices are being sent to such salaried and small traders who have taken exemption in 80G.
- 200% penalty and additional interest may be charged on addition in assessment
Verify claim deduction in return
The reason being given in the notice is that the deduction is much higher than in Form 16, so verify the claim deduction in the return and match it correctly with Form 16. In the notice being sent to the businessman, it is being written, ‘There has been a decrease in the gross total income (ie total income) declared by you, verify it. It is also written that the purpose of this email is to warn you about any wrong claim and you can also match it with the income shown in AIS.
Notices coming in these cases- CA Pankaj Shah, former chairman of Indore CA Branch, said that notices are being sent to such salaried and small traders, who have taken exemption under section 80G for the first time. Along with this, notices are also coming to such taxpayers who have taken exemption under LIC. Notice is being sent to the taxpayer by marking the exemption of interest on home loan, exemption of rent, any other tax free investment. Taxpayers who are receiving such notices should first collect evidence of all the investments claimed by them. The taxpayer has 15 days to respond. It is better to revise the return even if the proof of exemption is not with the taxpayer, otherwise addition in assessment may attract additional interest and 200% penalty. The penalty can be avoided by revising the return.