The income tax return filing deadline has not been extended. If you want to file a return now, you have to submit your ITR with a penalty – which is referred to as belated ITR return. This penalty amount ranges from Rs 1,000 to Rs 5,000, depending on your annual income level. Returns filed after the expiry of the original income tax return deadline of July 31 are termed belated returns.
Normally, every year once the ITR deadline is over, those who have filed their returns but have not had their ITRs processed fear that they might receive an income tax notice until they get a message from the income tax department confirming that their ITR has been processed. This year, there will also be many who are apprehensive about receiving an income tax notice from the department despite having filed their income tax returns carefully.
In this article, we will understand under what circumstances the I-T Department sends a tax notice to you.
Also read: How many days it takes to get tax refunds once you receive ‘ITR processed’ message from I-T dept
Here are the possible mistakes that might result in you receiving an income tax notice:
Choosing incorrect tax form: While filing a tax return, the foremost thing you need to understand is that there are multiple ITR forms and you need to choose an appropriate return form for you based on your income level and sources of earnings, among other factors. So, ensure that you have chosen the correct Income Tax Return (ITR) form to report all your taxable and tax-exempt income sources.
Not matching Form 26AS: Form 26AS provides a comprehensive view of your income, Tax Deducted at Source (TDS), self-assessed tax paid, and advance tax paid. Before starting tax return filing, it is your responsibility to cross-check the details for accuracy.
Not reporting income from other sources: Most taxpayers, willingly or unwillingly, at times do this mistake. They don’t report in their ITR all their incomes from other sources. Income from other sources also comprises interest from savings accounts or dividends. These incomes must be reported under Section 56 of the Income Tax Act.
Also read: Income Tax Return: Can you revise your ITR after receiving a notice from the Income Tax Department?
Not mentioning exempted income: Taxpayers tend to think that if some incomes are exempted from tax, they are not supposed to mention these earning in ITR. But remember that even income that is exempt from tax must be reported in ITR. For example, capital gains from the sale of a house that are reinvested to buy another house are exempt under Section 54 but they are required to be mentioned in the ITR.
Incomplete bank details: You must provide correct bank details, including the name, IFSC code, and account number, to ensure hassle-free and timely processing of tax refunds. If you provide incorrect bank information that may cause delays. Also you need to pre-validate your bank account for smooth processing.
Failure to E-Verify ITR V: The Income Tax Department’s guidelines for ITR filing say that you must verify your ITR within 30 days of filing. Without verification, the tax department will not process your ITR, and declare it invalid. Also if you ignore notices regarding verification, you might end up paying penalties for non-filing.