To avoid being penalized by the income tax department, individuals with taxable income are required to file income tax returns (ITR). However, some taxpayers may still receive an income tax notice despite filing the ITR by the deadline.
This does not necessarily imply any wrongdoing; however, it is necessary to respond to the notice promptly and appropriately. The annual assessment division issues sees in light of multiple factors, remembering errors for announced pay and genuine pay, inability to report high-esteem exchanges, deficient documentation, late recording or non-recording of profits, and irregular examination.
Discrepancies between declared and actual income are one of the primary reasons for receiving an income tax notice. If there is any suspicion that income has been under-reported, the income tax department will issue a notice and be constantly on the lookout for tax evaders.
