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Income TAX Notice: How to Avoid Them?

A notice from the Income Tax office is something that no one likes and it should not be taken lightly also. There can be many reason you can receive notice from I.T Department.

Let us understand with some points to avoid how we should deal with I.T.

First some basic information for I.T Return Rules and regulations (ITR)

  • Gross income (without any deductions) is above the exempted limit (Rs 2,50,000 in case of individuals below the age of 60) is required to file annual Income tax return in due time
  • 3 lac limit for senior citizen & 3.5 lac for super citizen over 80 if it cross that than it is required to file annual income tax return in due time.
  • If you are a resident Indian and you own a foreign asset or are a signing authority in a foreign bank account, you have to file tax return irrespective of your income
  • Even where your employer has already deducted TDS from your pay you need to file your return to avoid a notice.

 Now we will understand certain points which will help how to avoid taxation problems

  • T File on time with Correct information

First step personal details should given perfectly according to documents and basic precaution you need to ensure 100% compliance with the law, and all the details while filling the returns should match the details already available with the IT department.

  • Submit ITR V to Centralized Processing Centre (CPC) Bangalore

Tax file is completed once it reaches to CPC. Just uploading returns online is not enough; you have to make sure confirmation of its receipt from the CPC & select ITR according to your income.

  • D.S

Taxes deductable or not, and also see T.D.S reconcile, keep all the information ready.

  • Income vs expense Details

If your income in the year was Rs 5 lac, and you invested Rs 12 lac, you will need to justify the source of the used funds; the same applies to expenses also.

  • “Exempt” income

Yes some incomes are exempt from taxation but person must declare it while filling up return for safety.

  • Avoid submitting Form 15G/15H

Try and avoid submitting form 15G/H without a case. Submit only if you believe income will be lesser than Rs2.5lacs.

  • Mandatory Disclosures

It should be watch out for safety every financial year.

  • Advanced tax

Pay advanced if you are coming in list of liable.

  • Finance or assessment year

Understand the difference of financial current year and assessment upcoming year.

  • Clubbing Income

Person should be aware whether he/she is applicable or not for clubbing income.

  • D.S and Tax difference

A person should know the difference of T.D.S and tax.

  • Avoid transactions on higher side in Banks

    1. Purchase of 10lacs or more. Transaction of 50lacs or more.
    2. Cash of Rs 10lacs in saving accounts
    3. Bills- credit card over 1lac or more
    4. Investment in shares and mutual fund of 10lacs or more.
  • Gifts/money credited to bank account

Maintain documentary evidence for all the transactions of funds received from friends and all. You may also need to report these transactions at few instances.


Try to avoid such circumstance which are given in above points & if such transactions are done then better is to keep Tax Advocate or chartered accountant on your side for safety & it’s very important to pay your taxes on time.

An income tax notice and later clarifications can be a cumbersome and laborious affair. You may have to repeatedly visit the assessing officer and hassle yourself.