Received notice of Income Tax on claiming tax refund? Know the easy way to avoid

This time the new work is being done that the tax department is scrutinizing the claims of people with the help of artificial intelligence software. On this basis, notice is also being served to the taxpayer. You will be required to respond to the notice.

On receiving the notice from the Income Tax Department, it is necessary to answer with full evidence.

The last date for filing Income Tax Return (ITR) is 31st July. now tax department Processing returns and returning refunds. Many people may have even got a refund. It may also happen that someone has got a notice from the tax department in lieu of refund. This happens when the tax or income has been calculated incorrectly, the income is not shown correctly or the excess loss is claimed. The tax department is investigating the refund claim of those whose TDS has been deducted. After verification, the refund money will be given in the account.

This time the new thing is that the tax department is scrutinizing the claims of people with the help of artificial intelligence software. On this basis, notice is also being served to the taxpayer. If multiple refund claims are made simultaneously under different sections of the Income Tax Act, then notice can be received. In response, the tax department may ask the taxpayer to verify and revise the ITR. This happens when there is no proof of investment in ITR or if exemption is claimed incorrectly. Notice is given to the taxpayer so that he can rectify the claim and fill the ITR again by reducing the refund amount.

Why and who gets the notice

Such taxpayers or small business people who have claimed tax exemption under section 80G are getting more notices. This section provides tax exemption benefits on many different expenses, so it is common to get confused in this section. Like donation money, special relief fund and donations given to charitable institutions come in this. Salary class people are getting notices because they have shown more refund claim and a huge difference is being seen from their Form 16. Those running the business are getting notices because they have shown more losses and have made wrong claims.

If someone commits such a mistake and the tax department takes action on that mistake, then a fine of up to 200 percent can be imposed. Wrong claim may attract a fine of 200%, along with interest may also have to be paid. So be careful with the notice and if you get it by mistake, know the way to avoid it.

read this also



What to do when you get a notice

If you get the notice, first of all collect all the documents which are shown in the investment. On the basis of these documents, get the ITR filing revised within 15 days from the date of receipt of the notice. If you fall in the salaried category, then tally the refund claim with the deduction shown in Form 16. Reconcile all the deductions given in your ITR in Form 26AS. The amount of TDS should be same in Form 26AS and Form 16. If there is any difference in these forms, then ask your company or TDS deducting institutions to correct the difference.