Factors why you may get yourself a notice through the income tax division

Factors why you may get yourself a notice through the income tax division

Listed below are typical reasons taxpayers could possibly get earnings income tax notice and exactly how they are able to avoid them.

1. For delay filing I-T return For those who have perhaps not filed your return by the due date, you may get a reminder notice through the tax division. You receive this notice prior to the end of this evaluation 12 months which is why the return arrives.

Saraswathi Kasturirangan, Partner, Deloitte India stated that filing income tax return where in actuality the individual has income that is taxable mandated under section 139(1). The notices for non-filing because of the deadline are generally speaking automatic reminders which point l out of the responsibility under section 139(1) and remind taxpayers to register their comes back in order to avoid charges. “nevertheless, a notice under section 142(1)(i) might be given needing the taxpayer to furnish the return if you don’t filed inside the due date,” she stated.

You will have to pay a late filing fee if you do not file your return by the due. Hence, then you may have to pay a penalty of Rs 5,000 if you miss the deadline and file a belated return for the current financial year before December 31, 2019. Nevertheless, this penalty increases to Rs 10000, in the event that ITR is filed on or after January 1, 2020.

In order to avoid getting notice: you need to register ITR prior to the deadline for filing ITR for a specific evaluation year.

2. Misreporting LTCG from equity You will need to report any realised long-lasting money gains (LTCG) on listed equity and equity-related shared funds during the time of filing ITR.

LTCG above Rs 1 lakh in per year on listed equity and equity-related shared funds on which STT happens to be compensated will soon be taxed at 10 %. Continue reading “Factors why you may get yourself a notice through the income tax division”