Also Read | Unexplained Cash at Home Attracts 84% Tax and Penalty: New Rules.

Intimation vs. Notice: Know the Difference

It is vital to know whether the communication you received is an Intimation or a formal Notice.

5 Common Income Tax Notices and Why You Get Them

The IT department uses data analytics to issue notices when your filed ITR does not match information they already have (like Form 26AS or AIS).

Also Read | Unexplained Cash at Home Attracts 84% Tax and Penalty: New Rules.

5 Steps to Respond to Any Income Tax Notice Online

Answering a tax notice happens entirely within the income tax e-filing portal. You won’t be sending paper or visiting an office for this, which is good.

Step 1: Log in and Check Your Worklist

• Visit the official Income Tax Department portal (incometax.gov.in).

• Log in using your PAN as your user ID.

• Once logged in, navigate to the Pending Actions section on your dashboard.

• Click on “e-Proceedings” or look at your “Worklist” tab for actions required.

Also Read | Unexplained Cash at Home Attracts 84% Tax and Penalty: New Rules.

Step 2: Read the Notice Carefully

• Click on the relevant notice to View Detailed Notices.

• Crucially, identify the Section (e.g., 143(2), 139(9)). This tells you exactly why the notice was issued and what action is required.

• Note the deadline. Missing the deadline can lead to hefty fines or your return being treated as invalid.

Step 3: Gather Documents and Draft Your Reply

• Collect all relevant supporting documentation (bank statements, investment proof, invoices, Challan copies) needed to address the issue raised in the notice.

• Draft a clear, professional, and factual response. Address every single point raised by the Assessing Officer in the notice. This is a must.

Step 4: Submit Your Response and Attachments

• Within the e-Proceedings section for the relevant notice, click “Submit Response.”

• If it’s a Demand Notice (u/s 156), you must choose a response:

  • Demand is Correct: Pay the amount immediately via the e-Pay Tax function.

  • Disagree with Demand: Select the relevant reason(s) and provide a detailed explanation and supporting documents (like proof of prior payment or calculation error).

• Upload your response letter and all supporting documents (ensure they are in the required PDF/JPEG format and size).

Step 5: Final Submission and Tracking

• After submitting your response, a success message and Transaction ID will be displayed. Keep this record.

• You cannot update or withdraw your response once it’s submitted.

• Keep checking the e-Proceedings section once a week for any fresh follow-up notices or clarification requests from the department.

Also Read | Unexplained Cash at Home Attracts 84% Tax and Penalty: New Rules.

🛑 Official Source Disclaimer

DISCLAIMER: Tax rules are complex and change fast. Deadlines are strict. For Scrutiny Notices (u/s 143(2)) or personalized help, always consult a Chartered Accountant (CA).

The post Got an IT Notice? 5 Steps to Respond Online with Confidence 2026 [UPDATED] first appeared on Rightsofemployees.com.

If you are repeatedly spending from your card and taking money from friends, then these transactions can be seen as income. Especially when the amount is big or the transactions are happening repeatedly, then the Income Tax Department can inquire why this money came and whether it is your income.

Example: Suppose Rahul bought a laptop worth ₹ 75,000 online for his friend Ajay using his credit card. Ajay transferred ₹ 75,000 to Rahul via UPI the next day. Now if this happens once or twice then there is no problem. But if Rahul repeatedly spends from his card for Ajay or other friends and then they receive money via UPI or bank transfer, then the Income Tax Department may feel that Rahul is receiving this money as income.

What do the rules say?
If a credit card expenditure of ₹ 10 lakh or more is made in a financial year , then the bank has to give this information to the Income Tax Department. Paying credit card bills above ₹ 1 lakh in cash is also a cause of suspicion for the department. If you take money in cash from friends or transfer it without any documents, then you may also be charged a penalty. Therefore, it is important that every transaction is done through banking channels like UPI, NEFT or IMPS.

Tax experts say that occasional favor usually does not have any tax implication. But if it becomes a habit or the amount is large, then the income tax department can take it seriously.

How to protect yourself?

• Keep banking records of every transaction
• Avoid cash transactions, do only UPI or bank transfer
• Do not do this repeatedly, otherwise it can be considered a business activity
• If the amount is large, make a written consent or agreement

School Closed: Schools up to 12th standard are closed in this district of UP even today, colleges closed due to floods and rain

The post Tax Rules For Credit Card : Helping friends with credit card? Income tax notice may come home, know how to avoid it first appeared on Rightsofemployees.com.

If you make mistakes in ITR, then not only will you come under the scrutiny of the Income Tax Department, but you may also have to pay a heavy fine along with punishment.

Lakhs of cases identified by Income Tax Department

The last date for filing ITR is approaching, in such a situation, the department has identified about 1.5 lakh cases for detailed investigation under section 143 (2). Your responsibility does not end just by filing ITR. If you have made mistakes in the income tax return, then notices can be issued by the Income Tax Department.

Let us know about 5 such mistakes which if done while filing income tax return, then you will come under the eyes of the Income Tax Department-

1. Matching of documents

You have filed your ITR, but if there is a difference in the TDS details and the income details declared by you, then it can be investigated by the Income Tax Department. Such problems are generally common among salaried and freelancers. Therefore, while filing income tax return, match the declared income with your TDS details in advance.

2. False claims in greed for higher refund

If you are also among those taxpayers who give wrong information in the income tax return to get more refund, then the Income Tax Department can take action against you. To avoid such problems, it is better to file all the correct information. If the taxpayer declares less income, then a penalty of 50% can be imposed on him. On the other hand, a penalty of 200% may have to be paid under section 270A for submitting fake documents.

3. Income Tax Department’s eye on high value transactions

High value transactions are monitored by the Income Tax Department. If you do not include details of such major activities in your ITR, then you may get into trouble.

4. Avoid disclosing all sources of income

Many taxpayers do not include information about all the sources of income earned in their income tax returns. Due to which they can also come under the radar of the Income Tax Department. For example, if you are a salaried person and have made capital gains in the financial year, have received income from rent, have received bank interest or have earned profit through shares or crypto, then all such income will have to be included in your income tax return. If you do not include the details of income earned from all sources in your ITR, then you may have to pay a penalty on it later. Along with this, you may also have to face questions from the Income Tax Department.

5. Sudden decrease in income

In many cases, if the taxpayer’s income suddenly decreases compared to the previous year, the Income Tax Department may ask for an explanation. In response to this, the taxpayer will have to submit the necessary documents.

If you are also thinking of filing income tax return, then enter the correct information of all your documents. If necessary, you can consult a financial advisor. So that your income tax return is filed without any mistakes and you can avoid action by the Income Tax Department.

The post 5 Common ITR Filing Mistakes That Can Trigger an Income Tax Notice first appeared on Rightsofemployees.com.

How much money can you keep in the account?

According to the rules, you can keep any amount of money in your savings account. There is no limit for this. You can deposit any amount in the account through cheque. The limit is for depositing cash in the account.

How much cash can you deposit?

The rule says that if you deposit Rs 50,000 or more in cash in the bank, then you will have to provide your PAN number along with it. At the same time, you can deposit up to one lakh rupees in cash in a day. Also, if you do not deposit cash in your account regularly, then this limit can be up to Rs 2.50 lakh. At the same time, you can deposit up to Rs 10 lakh in a financial year. But if you deposit more than this limit in a financial year, then you have to tell the IT department about the source of that income.

This limit is overall for many accounts

If you do not do this, this limit for depositing cash in the account is for a single bank account. If you have this limit for taxpayers, then this limit is overall for one or more accounts.

What will happen if the limit is crossed

If a person deposits more than Rs 10 lakh in cash in a bank account in a financial year, then the bank has to inform the Income Tax Department about it. In such a situation, the person has to tell the source of income. If that person is not able to give satisfactory information about the source of income in the Income Tax Return, then he can come under the radar of the Income Tax Department and an investigation can be conducted against him. If caught, a heavy fine can be imposed.

This does not mean that you cannot do a cash transaction of more than 10 lakhs
However, this does not mean that you cannot do a cash transaction of more than 10 lakhs. If you have proof of this income, then you can deposit cash without any worry. However, from the point of view of benefits, instead of keeping so much money in your savings account, it is better to convert that amount into FD or invest it in some other place, from where you can get better returns.

ITR Filing Deadline : File ITR by 31 July 2025 or else you will have to pay a penalty of Rs 5,000

The post Cash Deposit Limit! Income tax notice can be received on depositing how much cash in the bank account, check details first appeared on Rightsofemployees.com.

Recently, Budget 2025 has increased the rebate limit to Rs 12 lakh under the new tax regime. But there is still no clarity on whether this applies when a taxpayer has both regular income (such as salary) and special rate income (such as STCG, short-term capital gains).

What is the problem?

Under the new regime, taxpayers with total income up to Rs 7 lakh can claim exemption, which will reduce their tax liability to zero.

However, according to experts, it is not clear whether this will apply to special rate income like capital gains. Yeshu Sehgal, head of tax markets at AKM Global, said that there is a problem in the application of Section 87A rebate, especially for taxpayers who have both regular income and special rate income like STCG.

There is confusion over whether the rebate should be calculated on the total income or only on the regular income portion.

The Central Board of Direct Taxes (CBDT) has excluded short-term capital gains (STCG) and long-term capital gains (LTCG) from exemptions while processing returns through the ITR utility portal, due to which many taxpayers are being sent tax notices.

Gaurav Jain, direct tax partner, Forvis Mazars, said that the CBDT has taken suo motu cognizance of the ITR utility portal and has refused to give the benefit of exemption under section 87A on such short-term and long-term capital gains, which has led to a controversy.

When is the exemption given

• When normal income is taxed as per slab rates.
• Long-term capital gains under section 112 (on capital assets other than listed equity shares and equity mutual funds).
• Short-term capital gains under section 111A (15% tax on listed equity shares and equity mutual funds).

When exemption is not given

Long-term capital gains under section 112A (10% tax on equity shares and equity mutual funds).

Jain said that some taxpayers believe that exemption under section 87A should be available on total income including capital gains. Some CIT(A) rulings have supported this. Until the matter is resolved legislatively or judicially, taxpayers should oppose the denial and file an appropriate reply.

What should taxpayers do when they receive a notice?

• Review the notice – Check whether the exemption claimed is as per the tax provisions.
• Consult a tax expert – Consult a Chartered Accountant (CA) to validate the claim.

File a rectification or appeal – If wrongly rejected, file a rectification request or contest the notice.

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The post Income Tax Notice: Income Tax Department is sending notices to taxpayers, know why? first appeared on Rightsofemployees.com.

According to sources, the IT department is seeking details of household expenses. Some taxpayers are receiving notices from the IT department. They have been asked for information regarding hair cuts in salons and restaurants. Ration, electricity and gas bills have also been sought.

According to information received from sources, the IT department has also asked for details of cosmetics and perfumes from such people. IT sources say that these details have been asked in the faceless assessment. Such notices can be sent in cases of high income group. IT officials ask for such information in special circumstances. These details are asked in case of mismatch between income and expenditure in ITR. It is difficult to comment on the notice without DIN, PAN, AY.

Through this exercise, the IT department aims to find out whether these people are hiding their real income or making large transactions in cash, leading to tax evasion. This step by the Income Tax department is part of the government’s plan to use data analytics to curb tax evasion.

Sources in the IT department say that these notices have not been sent to everyone. It only includes high-income earners, who show a large income in their IT returns, but there is a huge gap between their lifestyle and the money withdrawn from the bank. In simple words, if someone lives a luxurious life, eats in expensive restaurants, wears expensive clothes but withdraws less money from the bank, then the department suspects that he has some other source of income, which he has hidden.

The post Income tax: Be careful if you have high income and zero expenses, you may get a notice from the IT department! first appeared on Rightsofemployees.com.

It is necessary to inform the department about cash transactions above the limit in banks, mutual funds, brokerage houses and property registrars.

Some people make mistakes while trying to save income tax. Later they have to pay for it. In such a situation, do some transactions under the Income Tax Act. This will never put you in trouble. Actually, the Income Tax Department keeps a close watch on long transactions. As soon as you make any cash transaction, you will immediately come under the Income Tax radar. After this, the chances of escaping are very less. In such a situation, we are telling you about some such transactions which should never be done within a year. If there is a need for a transaction, then inform the Income Tax Department about this.

Actually, if a bank, mutual fund, brokerage house and property registrar makes cash transactions above the prescribed limit, then they have to inform the Income Tax Department about it. Let us know about 6 such transactions, which can land you in trouble. Due to which the Income Tax Department can issue a notice.

You may get a notice on FD of more than 10 lakhs

If you deposit more than Rs 10 lakh in a year in a fixed deposit (FD), then in such a situation you can get a notice from the Income Tax Department. Whether it is deposited in one go or in many times or whether it is a cash transaction or digital. The Income Tax Department can ask you about the source of this money and can send you a notice. In such a situation, most of the money should be deposited in FD through check. If an amount of Rs 10 lakh or more is deposited in cash in a financial year, banks have to inform CBDT about it.

Cash deposit in bank account

CBDT has made a rule that if you deposit cash of Rs 10 lakh or more in one or more accounts of a bank or a co-operative bank in a financial year, then the bank or co-operative bank will have to inform the Income Tax Department about it. This rule is just like FD. Current accounts and time deposits are excluded from this. If you deposit more than this fixed limit, the Income Tax Department can question the source of the money.

Property Transactions

If a person buys or sells property worth Rs 30 lakh or more, then in such a situation the property registrar has to give this information to the income tax officials. In such a situation, the Income Tax Department can ask you where did you get the money for such a big transaction (High Value Transaction)? Many such questions can be asked.

Purchase of shares, mutual funds, debentures and bonds

If you make large cash transactions in shares, mutual funds, debentures and bonds, then you may get into trouble in such a situation. Actually, if a person purchases shares, mutual funds, debentures and bonds in an amount of Rs 10 lakh or more in a financial year, then companies or institutions have to give information about it to the Income Tax Department.

There may be problems even if you pay the credit card bill in cash

If your credit card bill is more than 1 lakh. In such a situation, if you pay this bill in cash at once. Even then you can get a notice. On the other hand, if you pay a credit card bill of more than Rs 10 lakh in cash in a financial year, then you can also be asked about the source of the money. If you have done something like this, then you will have to give information about it in your income tax return.

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The post Income Tax Notice: Don’t do these 6 transactions in a year, otherwise IT Department will issue a notice first appeared on Rightsofemployees.com.

Today we will answer both these questions. Personal finance experts say that according to the Income Tax Rules, the total cash deposit or withdrawal in a savings account during 1 financial year should not exceed Rs 10 lakh. Apart from this, according to section 269ST, a person cannot take a total of Rs 2 lakh or more in cash from a person in a single transaction or in transactions related to an event in a day. If there is a total cash deposit of more than Rs 10 lakh in all your savings accounts in a financial year i.e. between April 1 and March 31, then the Income Tax Department should be informed. Banks have to disclose such transactions, even if they are spread across multiple accounts.

High value transactions

Now the question is, what will happen if more than Rs 10 lakh cash comes into your savings account in a financial year? Any amount above this limit will be considered a high value transaction. Banks or financial institutions will have to inform the Income Tax Department about this under Section 114B of the Income Tax Act, 1962. Apart from this, you will have to provide PAN number to deposit more than Rs 50 thousand in a day. If you do not have a PAN, then you will have to submit Form 60/61 as an alternative.

How to respond to income tax notice?

To respond to an income tax notice related to high value transactions, you must have sufficient evidence to support your claim regarding the source of funds. These can be bank statements, investment records and inheritance documents. If you are unsure or concerned about the source of cash, you can consult a tax advisor.

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The post High value transactions: How much cash should you keep in your savings account so that you don’t get an income tax notice? first appeared on Rightsofemployees.com.

As per the rules, there is some tax exemption on submitting rent receipts. Some people misuse this rule and submit fake rent receipts to avoid or reduce income tax. But they do not know that the Income Tax Department also keeps an eye on such people and can take action against them.

Help of AI tools

Now the Income Tax Department is using AI, i.e. Artificial Intelligence tool, to deal with those who take tax exemption by submitting fake receipts, through which the details given in the form are matched with the transactions related to the PAN card.

Let us tell you that if you submit a rent receipt of more than one lakh rupees, the Income Tax Department will also ask for the landlord’s PAN card number. After this, with the help of artificial intelligence, it will be matched whether the claim amount made by the tenant by submitting the receipt is also showing on the owner’s PAN card or not.

This will be the punishment

Those who are found guilty in the eyes of the Income Tax Department, that is, when it becomes clear from the documents of both the landlord and the tenant that the tenant has not paid the rent as claimed or has not paid the rent at all, then the Income Tax Department can take action. Under which, notice will be given to those who have submitted fake rent receipts. Form 26AS and AIS will play the most important role in this entire process.

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The post Now there is no respite for those who submit fake house rent receipts – Income Tax notice may come first appeared on Rightsofemployees.com.

Well, there is no problem if you do small shopping in cash, but there are 5 high value cash transactions, which can cost you heavily. As soon as the Income Tax Department gets a whiff of it, you can get a notice. Let’s know about them.

1- Deposit cash in bank account

According to the rules of the Central Board of Direct Taxes (CBDT), if someone deposits Rs 10 lakh or more in cash in a financial year, then information about it is given to the Income Tax Department. This money may have been deposited in one or more accounts. Now since you are depositing more money than the prescribed limit, the Income Tax Department can ask you about the source of this money.

2- Depositing cash in fixed deposit

Just as questions arise when you deposit more than Rs 10 lakh in a financial year in a bank account, the same happens with FDs. If you deposit more than Rs 10 lakh in one or more FDs in a financial year, then if there is any doubt, the Income Tax Department can question you about the source of the money.

3- Big property transactions

If you have made a cash transaction of Rs 30 lakh or more while buying a property, then the property registrar will definitely inform the Income Tax Department about this. In such a situation, due to such a large transaction, the Income Tax Department can ask where you got the money from.

4- Payment of credit card bill

If your credit card bill is Rs 1 lakh or more and you pay it in cash, you can still be asked what is the source of the money. On the other hand, if you make a payment of Rs 10 lakh or more in any financial year by any means, then the Income Tax Department can question you as to where did you get the money from.

5- Buying shares, mutual funds, debentures or bonds

If a large amount of cash is used to buy shares, mutual funds, debentures or bonds, then this also alerts the Income Tax Department. If a person makes a transaction of Rs 10 lakh or more, then the information about it reaches the Income Tax Department. In such a case, the Income Tax Department can ask you where you brought the cash from.

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The post T dept notice: These 6 High Value Transactions, That Can Get You An Income Tax Notice first appeared on Rightsofemployees.com.

Such a notice comes to every taxpayer. If you have not received this notice, then you can assume that your return has not been processed yet. The intimation or notice states whether the ITR you have filed is correct or not. If it is not correct, then the reason for the same is also given in the notice.

After receiving the notice, many taxpayers think about what they have to do now and how to respond to the notice. So today we will answer all these questions.

What to do if you receive an Income Tax Notice?

If you have also received a notice under section 143 (1), then do not panic. First of all, read the notice carefully to know what is written in it. If you had filled any wrong information by mistake while filing ITR, which is mentioned in the notice, then correct it and file the revised return before the last date. Generally, the last date for filing revised income tax return is 31 December.

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What can happen in the intimation?

The department can give you 3 types of information through income tax notice:

1. You do not have to pay any additional tax: If your calculation and the department’s calculation match, then the tax liability and refund will be shown as zero in the intimation.

2. Demand for additional tax: If the details of your income or deductions filled by you while filing the return do not match the information available with the income tax department, then the department can demand additional tax and interest from you.

3. You will get a refund: If you have paid excess tax, the Income Tax Department will issue you a refund, which would be mentioned in the intimation.

ITR Intimation Password

The Income Tax Intimation document is password protected i.e. it cannot be opened without a password. To open it, enter your PAN number (in lower case) and date of birth (in the format of DDMMYYYY) as the password.

uppose if your PAN number is “ABCDE0000A” and your date of birth is 2nd April 1990, then your password will be “abcde0000a02041990”.

How to respond to intimation?

While responding to income tax intimation received under section 143(1), keep the following points in mind:

• First of all know the reason for income tax intimation.
• Attach proper explanation and necessary documents with your answer.
• Submit your reply online on the Income Tax e-filing portal within the given time limit.
• Also keep a copy of your answers and submitted documents safe with you.

What to do if intimacy is not received on time?

If the Income Tax Department does not process your ITR on time or does not send you an intimation, you can register your complaint by visiting the Income Tax portal. It is important to respond to the intimation or notice received from the Income Tax Department on time, so that you do not have to face any problem in the future.

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The post Income Tax Notice: Did you also get 143(1) intimation notice? How to answer? Know everything first appeared on Rightsofemployees.com.

Tax evaders are constantly on the radar of the income tax department. The purchases and banking transactions of such people are closely monitored. Let us know which are the 6 big transactions, which if you do in a financial year, you may get an income tax notice.

1- Deposit cash in bank account

According to the rules of the Central Board of Direct Taxes (CBDT), if a person deposits Rs 10 lakh or more in cash in a financial year, then it has to be reported to the Income Tax Department. This money may have been deposited in one or more accounts of the same account holder. Since someone is depositing more money than the prescribed limit, the Income Tax Department may ask you for information about the source of the money.

Also Read: Bank Account Deposit Rules- How much money can you keep in a savings account limits interest and tax rules explained

2- Depositing cash in fixed deposit

Just like a bank can inquire about cash deposits of Rs 10 lakh in a bank account in a financial year, it applies the same rule to transactions in FDs. If someone deposits more than Rs 10 lakh in FDs in a financial year, the income tax department can ask them about the source of the money.

3- Buying shares, mutual funds, debentures or bonds

Many people consider investing in shares, mutual funds, debentures or bonds a good option. Such investments can also develop the habit of saving money in the investor, but if someone uses a large amount of cash to buy shares, mutual funds, debentures or bonds, it also alerts the Income Tax Department.

If a person makes a transaction of Rs 10 lakh or more in any such investment option, then its information reaches the Income Tax Department, which can ask you about the source of the money.

4- Payment of credit card bill

Nowadays, the use of credit card has become a common thing in today’s time. Many times the bill of the users goes into lakhs of rupees, but if your monthly credit card bill is more than 1 lakh rupees and you want to pay it in cash, then also the Income Tax Department can ask you about the source of your money. At the same time, if you pay Rs 10 lakh or more in a financial year through any medium online or offline, then the Income Tax Department can question you that where did you get this money from?

5- Property related transactions

Real estate prices in cities and tier-2 towns are exorbitant, and transactions involving large amounts are common, but beware of the Income Tax Department if you are making a cash transaction of Rs 30 lakh or more while buying a property. The property registrar will inform the Income Tax Department, which in turn may ask you about the source of the money.

The post Income tax rules : Don’t do these 5 transactions even by mistake, otherwise you will get income tax notice first appeared on Rightsofemployees.com.

Well, there is no problem if you do small shopping in cash, but there are 5 high value cash transactions, which can cost you heavily. As soon as the Income Tax Department gets a whiff of it, you can get a notice. Let’s know about them.

1- Deposit cash in bank account

According to the rules of the Central Board of Direct Taxes (CBDT), if someone deposits Rs 10 lakh or more in cash in a financial year, then information about it is given to the Income Tax Department. This money may have been deposited in one or more accounts. Now since you are depositing more money than the prescribed limit, the Income Tax Department can ask you about the source of this money.

2- Depositing cash in fixed deposit

Just as questions arise when you deposit more than Rs 10 lakh in a financial year in a bank account, the same happens with FDs. If you deposit more than Rs 10 lakh in one or more FDs in a financial year, then if there is any doubt, the Income Tax Department can question you about the source of the money.

Also Read: ITR Filing 2024: If you do not provide these documents then your HRA claim may be rejected

3- Big property transactions

If you have made a cash transaction of Rs 30 lakh or more while buying a property, then the property registrar will definitely inform the Income Tax Department about this. In such a situation, due to such a large transaction, the Income Tax Department can ask where you got the money from.

4- Payment of credit card bill

If your credit card bill is Rs 1 lakh or more and you pay it in cash, you can still be asked what is the source of the money. On the other hand, if you make a payment of Rs 10 lakh or more in any financial year by any means, then the Income Tax Department can question you as to where did you get the money from.

5- Buying shares, mutual funds, debentures or bonds

If a large amount of cash is used to buy shares, mutual funds, debentures or bonds, then this also alerts the Income Tax Department. If a person makes a transaction of Rs 10 lakh or more, then the information about it reaches the Income Tax Department. In such a case, the Income Tax Department can ask you where you brought the cash from.

The post Income Tax: These 5 high value cash transactions may attract income tax notice first appeared on Rightsofemployees.com.

The Income Tax Department has started an easy process through which you can find out sitting at home whether the notice you have received is genuine or not.

Usually, the Income Tax Department sends you a notice to report any deficiency or mistake. In such a situation, instead of panicking, you should first check the authenticity of the notice. Let us understand the step-by-step process to do this check:

check email id

First of all, check from which email ID the notice has been sent. The Income Tax Department sends all its communications through its official email ID only. This ID ends with @incometax.gov.in, for example, intimations@cpc.incometax.gov.in. If the notice has come from any other email ID, be careful, it could be fake.

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Verify the notice by visiting the website

Even if the email ID is correct, still be cautious. You can visit the Income Tax Department website to check the original notice. On the left side of the website you will see a panel of quick links. Here you have to click on the section which looks like ‘Certify the notice/order issued by the Income Tax Department’. After clicking on this section, you can follow the steps given below.

step 1: A. If you do not have the document number then you will have to enter PAN, document type, assessment year, mobile number, date of issue of notice or order. Remember that this is valid only for assessment years 2011-12 and onwards.

B. If you have a document number, enter the document identification number and mobile number.

Step 2: In the second step, a six-digit OTP will come on your registered mobile number.

Step 3: Enter the OTP to proceed with the deposit.

Step 4: If there is no record in the Income Tax Department, the system will display ‘No record found for the given criteria’. Otherwise, the system will display whatever details are available based on the type of document/information.

Using this simple process, you can check the authenticity of the notice sent by the Income Tax Department in just a few minutes. If the notice is genuine, then follow the instructions given by the department.

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Income Tax: Everyone wants to invest in property. In this, the returns are quite good, even if late. Besides, your investment also remains safe. But, these days people are facing Income Tax Notice on purchasing property. If something similar has happened to you too, then you should know where the mistake happened.

It is very important to link PAN and Aadhaar –

If you have received income tax notice after purchasing a house or land. So check carefully whether your PAN card and Aadhaar are linked (PAN Aadhaar Link) or not. Also, the PAN card of the person whose property you are buying should also be linked to Aadhaar. If the PAN card of either the buyer or the seller is not linked to his Aadhaar number, then both can get into trouble. Recently more than one crore PAN cards were closed.

How much is the tax?

According to income tax rules on purchase and sale of property, 1 percent TDS has to be paid on purchase of property worth Rs 50 lakh or more. However, it can be claimed later. But now the deadline for linking Aadhaar-PAN has passed. In such a situation, people will have to pay 20 percent TDS.

Notices started coming –

More than 6 months have passed since the last date for linking Aadhaar-PAN. In such a situation, now the Income Tax Department is sending notices to the people who have purchased property. In these, 20 percent TDS has been demanded from the people. Hundreds of such notices have been issued by the IT department.

More than one crore PAN cards have become inactive –

Recently more than one crore PAN cards were deactivated. All of them had not linked their PAN card with Aadhaar. The government had taken this decision to promote the digital economy. Linking of these two cards makes it easier for the government to keep an eye on financial transactions. Therefore, if you are thinking of buying a house or house somewhere in the future, then be a little careful. Be sure to collect information about not only your own but also the PAN and Aadhar card of others.

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If you also transact money between father and son or between husband and wife, then this news is useful for you. Actually, every transaction of ours has an eye on income. In such a situation, a question arises in the minds of many people whether income tax notice can be received even on cash transactions? Let us know how much cash transaction you can do in your family.

Income tax sends notice?

According to tax experts, if you give money every month for household expenses or give money as a gift, then the wife is not liable for income tax. Both these types of amounts will be considered as the income of the husband. The wife will not receive any notice from the Income Tax Department for this amount.

But, if the wife repeatedly invests this money somewhere and gets income from it, then tax will be payable on the income. In other words, the investment income calculated on a year-to-year basis will be considered as the wife’s income, on which tax will have to be paid.

Under Section 269SS and 269T of Income Tax, penalty can be imposed on cash transactions of more than Rs 20 thousand. However, there are relaxations in this in many cases.

There is exemption in these cases

For example, there is no penalty on transactions between father-son, husband-wife and some close relatives. Exemption has been given in these cases.

In simple words, the wife will not receive any notice from the Income Tax Department for this amount. But, if the wife repeatedly invests this money somewhere and gets income from it, then she will have to pay tax on the income.

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The deadline for issuing notices is September 30 and taxpayers have been given 30 days to respond to these automated notices.  According to the report, central and state GST officials have sent these notices in the last fortnight. These notices mainly relate to mismatch in GST output and liability, input tax credit, ineligible tax credit claims and reversal of credit in case of exempted supplies. Tax officials can send notice even after September 30, but they will have to prove the case of tax evasion or fraud on behalf of the taxpayer.

Tax experts said this will lead to an increase in litigation in the next three months, while the cash flow of companies will be affected as they will have to deposit 10% of the total liability as deposit to file appeals. Tax expert Bipin Sapra, partner at EY, said that given that the decision deadline for these show cause notices is December 31, we will see a lot of litigation in the next three months.

PwC partner Pratik Jain observed that many of the notices appear to have been issued without proper analysis of facts and figures. He said many of them should be removed later, although this would cause controversy and paperwork for the industry. Officials would like to plan ahead so that these incidents can be reduced.

Deloitte partner Mahesh Jaisingh said underpayment of tax on related party transactions, wrong claims of input tax credit, export status (including refunds given), and state-wise credit availment and distribution are some of the common areas of disputes.

The post Income Tax Notice: Big Update! Notice sent to thousands of taxpayers, taxpayers have 30 days time first appeared on Rightsofemployees.com.

Employed people should also be careful

According to CNBC Awaj, Sharad Kohli solved all the problems of job seekers. He told that earlier it was believed that the government keeps a close watch on the returns of the businessmen. But this assumption is not correct. The department has as much eye on the returns of salaried people as it does on the returns of businessmen.

A small mistake will be heavy

Earlier you had to attach documents together. But now it is not so. There can be a mess in the declaration that is made from your side. If you make a rent claim, donation claim, home loan or any other claim, then you must have a proper proof of each claim. The government can investigate any claim. If the declaration turns out to be wrong, then you will have to bear the consequences.

Never forget this

That’s why whatever deduction you are claiming, keep its papers in the file beforehand. So that tomorrow if you are asked any question related to this, then you have solid proof of it. In such a situation, you may also be penalized for tax evasion.

The post Income Tax Notice: Do not take ITR lightly if you do a job, otherwise Income Tax Notice will come. first appeared on Rightsofemployees.com.

This notice has been issued due to non-filing of ITR and giving wrong income information. The Finance Minister also said that these notices have been sent to those taxpayers whose income is more than 50 lakhs. In such a situation, the government hopes that by the end of this financial year all the outstanding taxes will be cleared.

According to him, the IT department is working fast to resolve these notices. He has also said that even though there has not been an increase in the income tax rates in the last few years, it has definitely increased the income tax collection. Finance Minister Nirmala Sitharaman was addressing a program at Vigyan Bhavan in Delhi yesterday on the occasion of the country’s Income Tax Day.

Notices have been sent in two categories

Significantly, the Income Tax Department has sent a total of two categories of notices to taxpayers. First are those people who have hidden income and paid less tax and second are those people who have not filed ITR despite having tax liability. Please tell that most of the cases are of those people whose income is more than 50 lakh rupees annually. All these cases can be 4 to 6 years old.

So many taxpayers filed income tax return

Speaking on the occasion of Income Tax Day, the Chairman of the Central Board of Direct Taxes (CBDT) said that for the financial year 2022-23, a total of more than 4 crore taxpayers have filed their income tax returns so far. Half of this has also been processed. It is worth noting that the date of filing ITR for the financial year 2022-23 and assessment year 2023-24 is getting closer.

In such a situation, the Income Tax Department is repeatedly advising people to file ITR on time. If you do not do this, then later people with income more than Rs 5 lakh will have to pay a penalty of Rs 5,000 and people with income less than Rs 5 lakh will have to pay a penalty of Rs 1,000. In such a situation, complete your work by July 31 to deposit the tax without penalty.

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Every year you will need to file ITR to get tax return. For this all of you need Form-16. This includes your income, deductions from it and many other information related to your salary. Under Section 203 of the Income Tax Act, 1961, it has been made mandatory for every company to give complete information of its employee’s income through Form-16 showing TDS. This year you should file ITR by 31st July 2023.

When you will get Form-16, then you will have to check many types of information. In this, you have to pay special attention that the deduction you get is correct. Such deductions include House Rent Allowance (HRA) and Leave Travel Assistant (LTA).

You should keep these things in mind while filing ITR-

– You should keep in mind whether the PAN number mentioned on Form 16 is correct or not. If it is wrong, then it will not appear in Form 26AS, due to which you will not be able to claim credit.

You have to check other details like your name, home address, tax deduction and collection account number. Examine it carefully.

– You should compare the tax shown in Form 16, Form 26AS and AIS (Annual Information Return. You should check the tax deducted from your salary multiple times. If anything is wrong, you can report this to the employer in Form 16. Request correction of information.

If you have opted for the old tax regime, then you can apply for the deduction. For this, make sure that all the information in Form 16 is correct.
If you have changed the job, then you must take Form-16 from the old company.

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Taxpayers adopt many methods to save income tax. The government runs many schemes for tax deduction. While filing ITR, taxpayers have to tell about all their investments. But there are many people who give wrong information in ITR, due to which problems arise for them. Income Tax can send notices under various Acts to those taxpayers who give wrong information. Income tax returns are scrutinized in two ways. First compulsory and second manual. But you can save yourself from it by keeping a few things in mind.

Not filing ITR

The Income Tax Department also sends notices to those taxpayers who do not file ITR. It is mandatory for people coming in the income tax slab to fill ITR. Despite being an Indian citizen, it is mandatory for you to file ITR even if you have assets abroad. Income tax note can come home if not filled.

Mistakes in tds

Many times people make mistakes even while filling TDS. Even if there is a difference between TDS deposited and TDS deposited, the notice can come at home. That’s why you must know how much TDS has been deducted before filing ITR.

Undisclosed income

In ITR, you have to tell how much you earn in a financial year. Apart from this, the investment also has to be told. If you earn from investment and you do not disclose it, then also in that case income tax people can send you a notice. To avoid this, you can get the statement of interest from the bank and put it in ITR. Apart from this, you must also give information about the income you are getting from other sources.

Mistake in ITR

Many times people make mistakes while filling ITR in a hurry and forget to fill some important things. In such a situation also notice can come at home.

High value transactions

If you do a big transaction, which is different from your normal transaction, then also notice can be received. For example, if your income is Rs 5 lakh and Rs 12 lakh is deposited in your account in a year, then the Income Tax Department can investigate it or the source of income can be asked.

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In such a situation, many rules have been made by the Income Tax Department regarding ITR. If you ignore these rules made by the department or make any mistake in filling ITR, then a notice can be issued to you by the tax department.

In such a situation, if you are also going to file income tax return, then let us know which mistakes you should not commit even by mistake and in which situations notice can be issued to you by the department.

If the given information is not a correct match, then tell that if your total income and the income given by you in ITR do not match, then a notice can be sent to you by the Income Tax Department. In this case, you should give correct information about total income, assets and other things in ITR.

On the other hand, if there is a difference in income and transactions, if your income increases or decreases due to any reason, then the tax department can ask for information from you. For this reason, whenever you are doing any high value transaction or investing more money in any property, then you must give information about it in ITR.

On late filing of tax return, if any person does not file income tax return on time, then notice can be sent to him under section 142 (1) (i) of the IT Act and he can also be fined.

If you do not give the correct information about income tax, then

tell that the tax return is assessed by the Income Tax Department. In such a situation, if the correct information of income tax has not been given, then a notice can be sent to the taxpayer under section 147.

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CBDT chief Nitin Gupta on Monday said that 68,000 cases have been taken up for e-verification by the Income Tax department for under- or under-reporting of income in tax returns for the financial year 2019-20.

Under the E-Verification for Income (E-Verification for Income) scheme, the IT department is informing taxpayers through notices about discrepancies in financial transactions and annual information statements (AIS) filed in IT returns. Taxpayers can reply to the department giving clarifications or file an updated return if they find that there is a genuine discrepancy in the e-verification notice.

68,000 cases will be verified

Around 68,000 cases relating to the financial year 2019-20 have been selected for e-verification based on the risk management parameters set by the Income Tax Department. CBDT chief Nitin Gupta said that in 56 per cent of these cases or 35,000 cases, the taxpayer has already given a satisfactory reply. More than half have either responded to the notices or filed updated returns.

He said that till date a total of 15 lakh updated returns have been filed and tax of Rs 1,250 crore has been collected. However, no response has been received in 33,000 cases.

Updated returns to be filed by March 31, 2023

Taxpayers have time till March 31, 2023, to file updated returns for income earned in FY 2019-20. Once an assessee files ITR, the chances of his case being taken up for scrutiny or reassessment are slim.

What will happen if the notice is not answered

The CBDT chairman told that if you do not respond to the e-verification notice, there are high chances that an inquiry will be initiated into the matter. He said that taxpayers should check their AIS regularly. If taxpayers see any mismatch entry then they have to inform some IT department immediately.

15 days time

When the department informs the taxpayer about the e-verification by mail, the taxpayer is given 15 days to respond to the intimation from the I-T department. The CBDT has a time period of 90 days to complete a particular case under e-verify, but complex cases may take longer.

Let us tell you that the e-verification scheme was notified on December 13, 2021 and the pilot was launched in September 2022. The last date for filing updated returns for FY 2019-20 ends on March 31, 2023.

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However, even after this, there is no dearth of people who forget to file ITR. Many times people are careful, but due to the habit of procrastinating, the deadline is crossed. Later such people are left with only the option of repenting.

Income tax sends this notice

If you also do not file income tax return within the stipulated time, then the Income Tax Department can send you a notice under section 142 of the Income Tax Act. Especially if you fall under the taxable bracket, then non-filing of returns can lead to a lot of difficulties. However, there is no need to panic after seeing the notice received under section 142 of the Income Tax Act. This is actually a reminder from the department, which is sent to the taxpayer to remind him to rectify the mistake. Yes, if you take it too lightly, then the matter can become serious.

Second deadline passed

Before proceeding further, let us tell you that the date for filing income tax return for the financial year 2021-22 i.e. assessment year 2022-23 was 31 July 2022. If the taxpayer is not able to file the return by July 31 for any reason, then the Income Tax Department gives him a chance. In such cases, the taxpayer can file belated ITR by December 31, 2022, by paying a late fee of Rs 5,000. There is a late fee of Rs 1,000 if the total income does not exceed Rs 5 lakh in a financial year. In addition, penal interest is charged.

There is still this chance

Now the question arises that what will happen if you have missed the chance to file the belated return… We are going to tell you the same. The Finance Act, 2022 has given the facility of new Income Tax Return (ITR) filing, which is named as Updated Return (ITR-U). For this, a new sub-section 8(A) has been added to section 139 of the Income Tax Act.

If there is any mistake or mistake in your old ITR or there is any income which you forgot to show, then you can choose the path of updated return. Apart from this, even if you have not filed the return earlier, you can also use the updated return. Updated returns can be filed up to two years from the end of the relevant assessment year.

Have to pay this price

However, you will have to pay the price for this. Additional tax equal to 25% of the tax and interest will be payable if the updated return is filed within 12 months from the end of the relevant assessment year. Similarly, after 12 months and before 2 years, 50 percent additional tax will have to be paid for filing updated returns, apart from this, late fees will also have to be paid.

keep this in mind

There is one more thing to note. You get a chance to file an updated return only once. In such a situation, while filing the updated return, keep in mind that no additional income should be left out, because if you fail to show any income, then you will not get a chance to file the updated return again.

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In such a situation, many rules have been made by the department regarding filling of ITR. If you violate these rules or make some mistakes in filling ITR, then a notice is issued by the Income Tax Department. One such notice is Letter of Intimation, which is sent under section 143(1) of Income tax notice. Let us know when and why this notice comes.

What is letter of intimation?

Letter of Intimation is a kind of notice which tells whether the tax paid by you is correct or not. While filing income tax return, if you have made any mistake in filling the interest information, or if any other minor mistake has been made, then you may get such a notice. This notice tells that whatever mistakes you have made while filing income tax return, correct them.

When can income tax notice come?

• If you have paid less tax than your liability while filing income tax return.
• While filing income tax return, if you have paid more tax than your liability, or if you have paid the correct tax. 
• Experts believe that such notice often comes to every tax payer. If you do not receive such a notice, you can assume that your return has not been processed.

Reply to the notice soon

This type of notice is sent on the mail by the Income Tax Department. The tax notice under 143(1) is called Notice of Demand. That is, if you have any outstanding tax liability, then you should pay it within 20 days from the date of receipt of this message. If you delay in this, then after 30 days have passed, you will have to pay monthly interest at the rate of one percent.

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Intimation Under Section 143(1): After you file the Income Tax Return (I-T return), the department sends an Intimation Notice. If you pay more or less tax, then in both these circumstances the IT department sends an intimation notice.

Intimation notice is in case of short tax payment to the taxpayer to pay the balance amount and settle the issue. If someone sends an amount more than the tax, then in that case the Income Tax Department refunds the remaining amount in the concerned person’s account.

What to do if intimation notice comes

If you have received an intimation notice and you have paid less tax, deposit the balance amount of tax. So that your monthly salary comes in full and there is no deduction in TDS. For example, if according to your income you had to pay income tax of one lakh rupees, but you have deposited 90 thousand, then you can deposit the remaining amount again. On the other hand, if you have filled more than the fixed amount, then the refund will come to your linked bank account.

What is intimation notice under section 143(1)?

People have to file their income tax return on or before 31st July of the year. After filing the return, the tax department processes the return. During this process the IT department may find various discrepancies, such as data, calculations etc. In such cases the department will send a notice, also known as intimation notice under section 143(1).

This notice is sent to the registered email ID of the tax payer. An SMS is also sent to the registered mobile number informing that the intimation notice has been sent to the registered email ID.

Failure to comply with the intimation notice may harm you

If you do not respond to the notice once the information is received from the IT department, then you may suffer losses such as TDS may be deducted from the salary or less salary may come.

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In such a situation, some notices are reaching those people, who were not supposed to know these notices. In such a situation, people are getting upset due to getting unnecessary notices. The Income Tax Department has said that in such a situation, if such notices have been sent to any person, then they can give information about it to the Income Tax Department in many ways.

Let us tell you that many things have to be taken care of while filing income tax. All information should be re-checked at least twice after filing an incorrect return. There are three rules for sending notices in the e-verification scheme of the Income Tax Department. If the PAN card number is wrongly entered then all the three notices will reach on the wrong e-mail. Therefore, if you inform the Income Tax Department on time, then this is the best way.

On listening to the notice of the Income Tax Department, fear sets in the mind of the income tax payer.

what do experts say

Chartered Accountant Amresh Kumar says, ‘On hearing the notice of the Income Tax Department, fear sets in the mind of the income tax payer. If the income tax payer has filled wrong information in the return, then the officers of the department scare him. This instills fear in the mind of the income tax payer.

In such a situation, if the e-mail ID of the Income Tax Department from which the notice has been received, the person can also inform by giving his complete information and PAN card number. It can also tell that wrong notice has been sent to him. Apart from this, the income tax payer can also contact the number 18001034215 and speak. Even after this, if the problem is not resolved, then you can go to the office of the Income Tax Department and register your complaint.

Point to be noted is thatIncome TaxMonths have elapsed since the last date for filing the return. But, still the process of assessment is going on in the Income Tax Department. Those filing correct returns are getting refunds from the Income Tax Department, while taxpayers making mistakes are getting notices from the Income Tax Department. Although, getting a notice from the Income Tax Department is not a good thing, but it is also not right to panic as soon as the notice is received. The Income Tax Department sends notices to taxpayers for various reasons.

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Many times mistakes are made in filing Income Tax Return. People make mistakes knowingly or unknowingly. If this happens, the Income Tax Department can send you a notice. This notice should not be ignored. It should be seen carefully what the notice has been sent for. Then the correct answer should be filled in.

 But trying to hide something even after getting the notice can cost you dearly. The department sends the notice only if you have not given any information. Now whether someone has done this due to negligence or due to some other reason, the answer will have to be given when the notice is received. This cannot be avoided.

To do this work without
panic, first login to www.incometaxindiaefiling.gov.in. After this, you can see different types of notices on your account dashboard. Different types of notices are also responded to differently.

131 (1A)
When the assessing IT officer finds that the taxpayer has suppressed any income, he sends an income tax notice 131 (1A).

Answer
: If you are not able to submit all the documents demanded by the Income Tax Department, then send all the documents you have before the deadline. After this, some time may be asked for sending the rest of the documents by giving an application.

139 (9)
If you have filed an incorrect return, then the Income Tax Department sends this notice. You can also get this notice for filling wrong IT form, giving wrong income details.

Reply Reply
it within 15 days. Proceed by clicking on e-File in response to Notice u/s 139(9) at the bottom of the e-file tab.

143 (1)
If you have given wrong information while filing income tax or have filed return by calculating tax incorrectly, then the IT department sends a demand notice for additional tax.

You must reply
to this within 30 days. You can reply by going to e-proceeding.

148
This notice is sent for reassessment if any part of the income has been missed in the assessment. Under this, the IT department can also send a notice for reassessment in the return of 6 years old.

Answer
: Mention the income for which this notice has come, in the income tax return. If you do not agree with the notice, you can ask the IT department the reason for sending the notice.

156
For recovery of outstanding tax, interest, fine or penalty, the Income Tax Department sends a tax notice under 156.

Pay the dues within 30 days of receipt of reply notice. Go to e-File and pay tax by clicking on Respond to Outstanding Demand. 

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What is Letter of Intimation in ITR?

In the language of tax, it is called Letter of Intimation. This notice tells whether the return filed by you is true or false. Such a notice can also come if you have entered the interest information wrong while filing the return or if there is any minor mistake. This notice tells that whatever mistakes have been made in the return, rectify them.

Why can income tax notice mean?

> If your liability is becoming more than the tax paid during the income tax return.
> If the tax that you have filed during the return, your liability is becoming less than that or you have filed the return correctly.
> Experts agree that such notices often come to every taxpayer. If you do not receive such notice, you can assume that your return has not been processed.

Do not delay in replying to income tax notice

Mails are being sent on behalf of the Income Tax Department regarding this. According to tax experts, the tax notice under 143(1) is called notice of demand. That is, if you have any tax liability due, then you should pay it within 20 days from the receipt of this message. If you delay it, after the lapse of 30 days, you will have to pay interest at the rate of one per cent monthly.

What should I do now? (How to check Income Tax refund status)

(1) If you go to the website of Income Tax Department, you will find ITR Status written at number 9 in the column on the left side of the homepage.
(2) On clicking on it, a new page will open where you will have to fill PAN number, ITR acknowledgment number and captcha code. Keep in mind that after submitting the ITR, the Income Tax Department sends the acknowledgment number to your registered mail id.
(3) After submitting all these details, the status of ITR processing will be known. If the return is not processed then Return Submitted and verified and processed then Return Processed and Refund Paid will be written.
(4) If you log on to the Income Tax website, then Filing of Income Tax Return and View Returns / Forms will be written below on the dashboard.
(5) If you click on the second option, a new page will open in which your PAN number will be uploaded above and assessment year (assessment year) and income tax return will have to be selected below.
(6) Then after submitting the return status will be shown. If the return is not processed, then the status will be written as Successfully Verified.
(7) If ITR Processed is written, then understand that your ITR has been processed.

Demand Notice (under section 156)

An income tax notice under section 156 is issued against the outstanding amount, interest, penalty etc. Such information is usually sent after the post assessment of income tax return. The notice, issued by the Assessing Officer, directs the amount to be due and asks the taxpayer to deposit the outstanding amount in time to avoid any penalty.

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