The process to file your income-tax returns (ITR) is now also available online but may still be confusing for some first-time taxpayers. Today we look at what you should do if you receive a tax notice from the I-T department.
What is an I-T notice?
An I-T notice is a formal communication from the tax department which is sent for a number of reasons either before or after you file returns. It does not automatically mean a taxpayer is in default and could simply be sent for correction of mistake(s) in your documentation.
It is advisable to first verify the authenticity of a notice before you respond. This can be easily done through the authentication feature on the official income-tax e-filing portal here (https://www.incometax.gov.in/iec/foportal/). You will need to keep you PAN Card, tax documents, Document Identification Number (DIN), and phone ready for the process.
What are the types of tax notices?
Once you have verified that the tax notice is genuine, check for the Income-Tax Act section referred to in the communication to understand what prompted the action. It is best to respond promptly to avoid penalties.
- Non-disclosure or misreporting of capital gains during the fiscal / assessment year in ITR.
- Failure to correctly report investments for self, spouse or children, non-disclosure of high-value transactions during the fiscal / assessment year in ITR.
Which ITR form should you choose?
- ITR-1 form: Individual with income from salary, one house property, and other sources.
- ITR-2 form: Individual or Hindu Undivided Family (HUF) without business income.
- ITR-3 form: Individual or HUF with income from business or profession.
- ITR-4 form: For presumptive income from business or profession.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
