Received revenue tax discover? No have to panic, counsel consultants

Income tax division has change into fairly vigilant about our spending (each money and digital). Just a single glimpse of mismatch between the revenue tax return (ITR) filed by the taxpayer and its spending is sufficient for the revenue tax division to slap revenue tax discover to the incomes particular person. However, if we go by the tax and consultants’ views, there isn’t any have to panic if the revenue tax division has served discover towards any incomes particular person. They stated that the revenue tax division provides ample time to the taxpayer to defend towards the discover.

Speaking on the revenue tax discover SEBI registered tax and funding professional Jitendra Solanki stated, “Income tax department can slap notice on both cash and digital yt. But, after receiving the income tax notice, one should first find out the reason for income tax notice. To find that reason, one needs to log in to the income tax portal and look at the form 26AS where reason for income tax notice will be mentioned.”

Solanki went on so as to add that after discovering out the explanation for I-T discover, the taxpayer must defend himself by logging in on the revenue tax web site and put its grievance on the house web page.

On what ought to be the plan of action if the revenue tax discover is towards money transaction Dr. Suresh Surana, Founder at RSM India stated, “There are various restrictions or limits imposed on cash transactions which can be carried out by the taxpayers. In case of violation of any of the restrictions, the income tax department may issue a notice to the taxpayer assessee, which is generally done online. The revenue department collects data relating to transactions from the Annual Information Report (AIR) filed by various third party organisations such as mutual funds, banks, registrar of properties, etc. This data is then co-related with the income tax return and any discrepancy in both would be highlighted by way of notice which may be intimated to the taxpayer assessee by way of SMS or e-mail.”

Dr. Suresh Surana went on so as to add that response to such notices could be within the following step-by-step method:

Step 1 : Login into the Income Tax portal by way of https://incometaxindiaefiling.gov.in.

Step 2 : Go to the ‘e-campaign – High Value Transaction’ on the ‘Compliance Portal’ which could be accessed by way of the ‘My Accounts’ Tab. (additionally refer Page 38 onwards of the connected Compliance Portal User Guide enclosed on your reference).

Step 3 : Taxpayer must click on on Financial Year below High Value Transactions after which an informative advisory message can be shows which is to be dealt by merely clicking on “OK” button. The taxpayer can then view info Summary.

Step 4 : The taxpayer has to pick one of many following choices based mostly on the information of the case as follows:

Option A – Information is appropriate.

Option B – Information will not be totally appropriate.

Option C – Information associated to different Person/ Year.

Option D – Information is duplicate/ included in different displayed info.

Option E – Information is Denied.

Step 5 : Once such info is chosen by the taxpayer assessee, he has to additional present particulars in regards to the supply of such transaction quantity and/or every other particulars based mostly on the choice chosen. For occasion, if he selects Option C above, he can be required to supply particulars comparable to identify of the opposite individual, their PAN, relationship with such individual, and many others.

Step 6 : The submitted response could be seen below the identical e-campaign Tab for reference functions.

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