Last updated : 16th September, 2016
Many people are now receiving notice from Income tax department regarding non filing of income tax returns for last few years ( 2012-2013, 2011-2012, 2010-2011, 2009-2010.) . Income tax department asks them to reply within 10 days .
Income tax department is collating information from various sources and sending notices to non-filers. they are requested to submit the Compliance Form on efiling website.
Also Read News – Income Tax Dept to send notices to further 21.75 lakh “non-filers”
There is no need to Panic just because you have received the notice. A notice does not necessarily mean you have committed a crime and even a minor error in tax return can invite a notice from the tax department.
When you can get an IT Notice?
Also Read – How to File Income Tax return (ITR) online – Step by Step Guide for eFiling
1) Return not filed – Many employees donot have returns assuming that they donot need to do so as their employer has deducted TDS and issued Form 16. But this is not correct. You need to file the returns even if TDS is deducted by employer.
2) Mismatch in TDS deducted & TDS claimed: There might be mitmatch between that TDS claimed by you in IT return & actual TDS showing in your Form 26AS. There might be possibility that your emplyer has not credited the TDS deducted in your account or credited someone else’s account by mistake. In that case, you need to ask your employer to rectify their TDS return.
3) Notices for High value transactions : The tax department is closely scrutinising high value transactions for individuals – for e.g cash deposits worth Rs 10 lakh or more in a year, credit card purchases of Rs 2 lakh or more, mutual fund investments of Rs 2 lakh or more, or purchase of bonds and debentures worth Rs 5 lakh or more in a year, sale or purchase of property worth Rs 30 lakh or more etc. So, taxman may send you a notice asking you to file a return and explian sources of income.
4) Non disclosure of Income – If you have not disclosed income – for e.g Bank Interest, Incoem from Shares, etc, The Income tax department may send you notice for that.
Some of the codes mentioned in Information summary of Income Tax notice :
CIB-403 – Time deposit exceeding Rs 2 lakh
Cash deposit above Rs 50000
TDS return – Interest other than Section 194A
Credit Card payment more than Rs 2 lakh
CIB-321 Share transactions Rs 20000
CIB-184, CIB-411,
TDS-92A, TDS-92B (TDS return salary to employee), TDS 94A
TDS return – Insurance commission
CIB-183 Time deposit of Rs 100000
CIB-410 cash deposit aggregating of Rs 200000
Transfer of Immovable property
Interest in Bank exceeds Rs 50000
Depending on the information summary mentioned in notice, you will need to send your reply.
How to reply to the Tax notice?
If you have received notice from Income Tax Department, DO NOT Panic. Simply respond to the notice and furnish the information requested by the department.
It wil be good to prepare a manual return for that year & see if there is any shortfall in taxes paid. Pay the taxes accordingly.
If your case is complex, then take help of a Tax expert. Not responding to the notice could cost you a lot of time, money and peace of mind and in extreme circumstances could also lead to imprisonment.
Compliance Section: GO to Compliance Setion . Select Whether Return Filed or Not Filed & Select Reason
In “Related Information Summary” tab , check if the transactions belongs to you. If yes, Just Select SELF. If the transactions doesnot belong to you, then you can select “I need more information” etc.
File Belated Returns
If you have missed filing IT returns on time, you can file it within 1 year from the end of relevant assessment year . Upto 31-3-2015, you can file returns for following years:
AY 2014-2015 (FY 2013-2014)
AY 2013-2014 (FY 2012-2013)
Read – Hurry – you can file income tax returns for last 2 years by 31st March
Pay due Taxes (even if you cannot file returns for old years)
If there is any tax due as per your calculation, it is better to pay it immediately. Even if you cannot file return after it is time barred, you can still pay taxes for that assessment year.
https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
Select Challan 280 & then select relevant assessment year & pay taxes.
I have created this post, to compile these queries & responses so that all members can benefit.
If you have received IT notice, please ASK your queries below using Comments Section.
Important Links
How to File Income Tax return (ITR) online – Step by Step Guide for eFiling
How to quick e-file ITR1 & ITR 4S online for FREE – Step by Step Guide
How to other ITR forms online (using excel upload) for FREE – Step by Step Guide
Income tax slab rates for FY 2014-2015 (AY 2015-2016)