Reason why one could get notice from it department in the new financial year

IT departments all across the world are preparing for the start of the new fiscal year as we speak. IT departments are in charge of making sure that the new year offers the best outcomes possible. With the change come new challenges and opportunities. Notifying employees and businesses in advance is one of the common techniques to ensure a smooth transition. Here are some explanations for why, in the new fiscal year, an IT department might send you a notice.

Inconsistency with the Annual Information Statement or Form 26AS

The Annual Information Statement (AIS) gives a thorough analysis of a taxpayer’s financial activities, including dividends, earnings on accounts for savings, interest on deposits, transactions involving mutual funds, securities, and overseas transfers. An AIS statement may be used to review and remember financial transactions from the fiscal year before that we occasionally forget due to busy schedules. One can quickly gain a comprehensive picture of the transactions that occurred last year and for which tax is due by skimming through your AIS. In a similar vein, Form 26AS allows you to see a complete list of every financial transaction involving tax deducted and received at source (TDS/TCS) for the financial year in question.

Filing a return with discrepancies can result in a notification from the Income Tax Department if the information on the return is erroneous or incomplete. In order to avoid any discrepancies, it is crucial to give proper information while filing the return.

Tax non-payment

The Income Tax Department may send you a notification if you don’t pay your taxes. To prevent receiving any letters from the agency, it’s crucial to pay taxes on time and in full.

Failure to File a Return

The Income Tax Department may also send you a notice if you fail to file your income tax returns for two years in a row. Even if there are no taxes due, it is crucial to file the income tax return on schedule.

Notification of a tax return error

A notification of a flawed return is one issued under section 139(9).  This is a computer-generated alert that you would get if the tax department made a mistake or ran into a problem while processing your income tax return.For instance, a taxpayer may get a warning of a defective return if they don’t check the online income tax return they filed.

Transactions with High Value

Do you realize that banks and other third parties may share information about your high-value transactions with the revenue  department? An individual may receive a notice on section 142(1) combined with subsection (2) of section 143 for more information and examination if these particulars do not match the taxpayer’s income tax return.