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.
Now we will understand certain points which will help how to avoid taxation problems
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.
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.
Taxes deductable or not, and also see T.D.S reconcile, keep all the information ready.
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.
Yes some incomes are exempt from taxation but person must declare it while filling up return for safety.
Try and avoid submitting form 15G/H without a case. Submit only if you believe income will be lesser than Rs2.5lacs.
It should be watch out for safety every financial year.
Pay advanced if you are coming in list of liable.
Understand the difference of financial current year and assessment upcoming year.
Person should be aware whether he/she is applicable or not for clubbing income.
A person should know the difference of T.D.S and tax.
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.