For these reasons, you may receive an income tax assessment; Check details

You should respond promptly to the income tax assessment and submit all required documents. Timely filing of Income Tax Returns (ITR) is imperative to avoid penalties from the Income Tax Department. If your total income falls below taxable income in a fiscal year, it is necessary to file ITR.

Taxpayers who do not submit their declarations by the deadline will be notified by the Income Tax Office. In many cases, some taxpayers may receive income tax assessments despite filing the ITR by the deadline.

When you receive an income tax assessment, it doesn’t always mean that you did something wrong. It is worth noting that you should promptly respond to the notice and provide the department with all necessary documents and information as needed.

The Income Tax Department may issue a notice to review certain items mentioned in your ITR. A taxpayer typically receives an income tax bill due to discrepancies between declared income and actual income, failure to report high value transactions, incomplete documentation, and late or non-filed tax returns. You may also receive a notice if you have been overcharged.

Let’s take a look at the possible reasons for receiving a decision from the Income Tax Office.

Discrepancies between declared and actual income: The tax office is constantly on the lookout for people who are trying to evade taxes. If the authorities suspect that there is a discrepancy between your reported income and your actual income, you may be served with a notice of termination.

Failure to Report High Value Transactions: Failure to report high value transactions in the ITR will subject tax officials to scrutiny. These transactions include large cash deposits, the purchase of real estate or luxury items. The Income Tax Agency requires taxpayers to report all of their high-value transactions to curb illicit money and track down any underreported income.

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Incomplete Documentation: If you don’t include all the required documents when filing the ITR, you may receive a notice from the tax detectives. It is advisable to submit all necessary documentation to demonstrate the deductions claimed and the total income for a fiscal year from all sources.

Late filing or non-filing of ITR: The Income Tax Office will certainly issue a notice if you fail to file your tax return on time or at all.

Sample check: The wage tax office randomly selects the files whose tax returns have to be checked. If you paid your tax return correctly and on time, you don’t have to worry.

Excessive Deductions: If you claim excessive deductions, the Income Tax Authority may issue you with a notice for further investigation.

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