Receiving a notice from the income tax department can be a daunting and unpleasant experience, leaving many wondering what to do next. There can be several reasons for receiving a notice. For example, some taxpayers claim deductions like House Rent Allowance (HRA) or Section 80C without them being reflected in their Form 16 issued by their employer. While some of these claims may be genuine, the tax department may give the notice to investigate whether these claims are indeed authentic.
To help you avoid such tax notices here are some of the top reasons for which you may receive a notice from the Income-tax department.
If you receive a notice from the income tax department, it is essential to understand the reason for the notice. You should carefully review the notice and seek guidance if necessary to ensure that you respond appropriately.
“You should be proactive and vigilant with your tax filings, ensuring accuracy and completeness. It is crucial to cross-check the TDS credit claimed in your tax returns with the amount reflected in your Form 26AS. Reviewing your AIS and Taxpayer Information Summary (TIS) before submitting your income tax return can help identify any inconsistencies or errors. Furthermore, if you have claimed deductions such as HRA or Section 80C in your tax return, it is essential to ensure that these claims are genuine and supported by relevant documentation. This can help avoid potential mismatches and validity issues, reducing the chances of receiving a notice from the income tax department seeking clarification,” said Kumar.