What is Income Tax?

Income tax refers to a tax that the government levies on income generated by individuals and businesses. As per the law, taxpayers must file their income tax returns annually, determining the tax obligations. The Income Tax Act of 1961, directs that the central government collects this tax.

Income Tax Filing ( ALL ITR’s)

The individual income tax (or personal income tax) is a tax levied on the wages, salaries, dividends, interest, and other income a person earns throughout the year. Tax liability of a taxpayer is assessed on the basis of his or her Income. In case excess tax (i.e. paid taxes exceed the tax liability) has been paid in a year, taxpayer can claim refund for the said year by filing ITR..

Income tax is not just imposed on salary, it also includes profits from businesses, income from property, and other sources. Income tax is a source of revenue for the government to fund public services, provide goods to citizens, improve infrastructure, offer public healthcare services, and develop rural areas.

Personal income tax is levied on an individual’s salary and other types of income. Whereas business income tax applies to corporations, small businesses, and self-employed people. Income Tax Returns (ITR) form the basis for calculating a person’s income tax. It shows the financial status of s person, all sources of revenue, deductions, and the tax payable or tax refund.

When do we need to file Income Tax Return (ITR)?

According to income tax laws, the income tax return must be filed every year by a business or an individual that earns an income during a financial year. Tax returns have to be filed by an individual or a business before a specified date. The taxpayers are subjected to penalties if they fail to abide by the deadline.

It is mandatory to file income tax returns if your income is more than the basic exemption limit. The Government released a notification dated 21st April 2022 that specifies additional conditions for filing income tax returns if the income is below the basic exemption limit.

A few scenarios where it is compulsory to file ITR Return.

• If the gross total income (before any deductions under sections 80C to 80U) exceeds Rs2.5 lakhs.
• If you own a company or a firm irrespective of whether you had profit or loss during the financial year.
• If you want to claim an income tax refund.
• If you are a resident and a signing authority in a foreign account.
• If you like to carry forward a loss under a head of income.

Documents required for filing ITR

The procedure of filing income tax varies as per the income earned per year and income sources. There are certain mandatory documents required to be submitted as evidence under the Income Tax Act of 1961 and the Income Tax Rules of 1962

Generally, the documents required are :

• PAN card
• AADHAR Card
• Bank statement/Bank passbook
• Form 16
• Pay slips
• Form 26AS
• Form 16A
• Form 16B
• TDS Certificate
• Tax payment challans

Who is eligible to file ITR?

Different types of taxes are imposed on individuals depending upon their form and sources of income. Seven types of ITR forms are given for people falling into seven different categories for filing their respective Income Tax Returns. They are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7. People who are eligible to file income tax may come under any one of the following clauses along with the different types of Income Tax Returns.

Firstly, only individuals with taxable income above Rs.250000 can file and pay IT Individuals above the age of 60 (senior citizens) need to file only when their taxable income exceeds Rs.300000 and those above the age of 80 (super senior citizens) need to file when their taxable income exceeds Rs.500000

• Eligible UnderITR 1:

Salaried individuals, pension funds, agricultural income up to Rs.5000, and one house property owner all come under ITR 1. If the individual earns rent from the property it becomes taxable and if it is used for the business then it becomes taxable under “Income from business or profession”. Also, only individuals whose annual income is under Rs.500000 are eligible under ITR1.

• Eligible Under ITR 2:

A salaried/ pensioned person, income from more than one property, capital gains, foreign assets/ foreign income, NRI’s, agricultural income above Rs.5000, company directors, and investments in equity shares will all be eligible under ITR 2. Also, individuals whose annual income exceeds Rs.500000 fall under ITR 2. Income from sources such as horse betting and gambling can also be included.

• Eligible Under ITR 3:

It is for those who earn income carrying a profession or from a proprietary business. This also includes salary, pension, and income from other sources. Those functioning as partners will not come under ITR 3 but will be under ITR 2.

• Eligible Under ITR 4:

Business income under Section 44AD/Section 44AE, income from other sources such as lottery or horse races up to Rs.50 lakhs, and freelancers whose income doesn’t exceed Rs.50 lakhs all can file under ITR 4.

• Eligible Under ITR 5:

A firm, LLP, a body of individuals, an association of people, a cooperative society, and societies that are all registered under the Societies Registration Act, 1860 all come under ITR 5.

• Eligible Under ITR 6:

This is to be filed by every company that is registered either under the Companies Act 2013 or 1956. Only those whose income may come from those properties that are held for charitable/ religious purposes can skip ITR 6. If a company’s sales turnover exceeds Rs.1 crore, tax audits by a CA are mandatory.

• Eligible Under ITR 7:

Schools, colleges, institutions, business trusts, associations related to scientific research, news agencies, and political parties are all asked to file their Income Tax Returns under ITR 7.

How to file Income Tax?

Any individual or artificial body or group of individuals that earn more than the basic exemption limit is expected to pay Income Tax under the Income Tax Act, 1961.

Income Tax Return (ITR) is a form filed by a taxpayer in which details such as his/her income, claim exceptions, and deductions applicable to it are disclosed to the Government. This income tax e-filing is done online and has been made mandatory for all those who are eligible. There are 7 types of Income Tax Return Forms which are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7.

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A Comprehensive Guide on GST Return FILING

Introduction

Tax is the amount paid to the government by an individual or a corporate body based on their annual income. It is of two types, direct and indirect tax. Income tax falls under direct tax while GST (Goods and Service Tax) is a form of indirect tax in India. This has replaced many other taxes such as VAT and service tax. Goods and Service Tax is levied upon the supply of goods and services. GST was put into practice in India on July 1st, 2017. This is fully based on the Goods and Service Tax Act that was passed by the Indian Parliament on March 29th, 2017.

GST - Goods and Service tax

GST consists of three components. They are CGST, SGST, IGST, and UTGST. CGST is the tax that is collected by the Central Government of India for transactions happening within a state (intra-state). SGST is the tax collected by the State Government of India for transactions happening within the state. IGST is the tax collected by the Central Government of India for any transactions that happen between different states. UTGST is the tax for transactions happening in the Union Territories.

Every GST registered organization in India is responsible for filing a total of 26 GST Filings in one financial year. It might seem problematic and a lot of work, but we’ve got you covered. With expert guidance from expert tax, you will be able to complete all the necessary steps with ease. So, read on to know more.

Table of Contents

• GST - Goods and Service tax
• What is a GST Return?
• Eligibility - Who is liable for filing a GST Return?
• Types of GST Returns
• Benefits of GSTR Filing
• Documents Required for GST Return Filing
• Process of GSTR Filing
• How to Download GST Return Form?
• How do we check the status of GST Returns?

Penalty for late filing of GST Returns

Did you know that all registered businesses have to file monthly, quarterly or annual GST returns? These GSTR Filings are done online on the GST portal and are based on the type of business.

GST Returns refers to a document that contains detailed information on income, purchases, sales, tax collected on sales (output tax), and tax paid on purchases. Following the GST Return Filing, the registered taxpayer (every GSTIN) has to pay the tax liability ( the money owed to the government).

Eligibility - Who is liable for filing a GST Return?

According to the regulations in GST, a person can be considered taxable if they conduct business in India having more than Rs. 5 crores as annual turnover. They can be an individual,(Hindu Undivided Family) HUF, company, firm, proprietorship, government, or society. Registered business dealers who engage in the following activities are liable to file a GST Return.

• Purchase
• Sales
• Output goods and services tax (on sales)
• Input tax credit with GST paid on the purchase

While understanding GST returns it is also important to know the 7 types of taxpayers.

1. TDS Deductors

2. Non-resident taxpayers

3. Composition taxable persons

4. Input Service Distributors

5. Casual taxable persons

6. E-commerce operators, and

7. Regular taxpayers

Taxpayers with an annual turnover of up o Rs 5 crores have an option to file GST Returns under the QRMP scheme. The total number of GSTR filings under the QRMP scheme is 9 each year, which includes 4 GSTR-1 and GSTR-3B returns each and includes an annual return as well. The QRMP filers are entitled to pay tax every month although they file GST Returns every quarter.

Types of GST Returns

GSTR - 1:

It is about the details of all the outward supplies of the goods and services that are taxable. It is to be filed by the supplier before the 10th of each consecutive month.

GSTR - 2A:

It is a static view-only GST return for the inward supplies of goods and services that are taxable. It is to be filed by the buyer before the 15th of each consecutive month. The inward supplies the recipient could ve viewed as purchases made from other GST registered suppliers.

GSTR - 2B:

Like GSTR-2A, this is also a static view-only GST return. This acts as Input Tax Credit (ITC) statement for taxpayers. GSTR-2B helps in minimizing the time taken to file returns, eases reconciliation, simplifies compliance, and reduces errors.

GSTR - 3B:

This will be filled automatically with regard to the payment of tax from both GSTR1 and GSTR 2 and will be ready before the 20th of every consecutive month. It is a summary return of outward supplies and input tax credit claimed, including the payment of tax by the taxpayer.

GSTR - 4:

It is an annual return required to be filled by composition-taxable persons. This will hold the details of all the supplies, the tax payable, and the tax paid where the due date for filing is the 30th of the month succeeding a financial year.

GSTR - 5:

GSTR-5 is meant for non-resident foreign taxpayers who carry out transactions in India. It contains the details of outward supplies, inward supplies received, credit-debit notes, tax paid, and tax liability It is to be filed by the 20th of the consecutive month. (changed to 13th by Budget 2022; yet to be notified)

GSTR - 5A:

This includes all the outward taxable supplies and tax payable by Online Information and Database Access (OIDAR). It should be filed by the 20th of every month.

GSTR - 6:

This is filed by the input service distributor (ISD) by the 13th of the next month which has all the details of documents related to the input tax credit distributed and received by the ISD.

GSTR - 7:

This form has all the details of tax deductions and it is to be filed by those who are required to deduct TDS under GST by the 10th of each consecutive month.

GSTR - 8:

This return is to be filed by e-commerce operators registered under GST with details of supplies affected along with the tax collected. It is filed by the 10th of each consecutive month.

GSTR - 9:

This is filed yearly by the registered taxable person before the 31st of December of the consecutive financial year. It contains details of the inward supplies received, outward supplies made, a summary of supplies received under the HSN code, and information on tax payable and paid.

GSTR - 9C:

This is a self-certified reconciliation statement. It is filled by taxpayers registered under GST with an annual turnover of more than Rs.2 crores in a financial year. Usually, it has to be filled by December 31st of the year following the financial year.

GSTR - 10:

It is filed by the taxable person whose GST is canceled or surrendered within three months from the date of cancellation.

GSTR - 11:

It has details of the inward supplies and is filed by the person who has the UIN (Unique Identification Number). It should be filed by the 28th of the month following the month for which the statement is filed.

Note: The GST Return filings as per the CGST Act are subject to changes by CBIC orders or notifications.

An Ultimate Guide To TDS - All You Need To Know

Introduction

A lot of people nowadays have no adequate knowledge of TDS (Tax Deducted at Source) and how it is relayed to their taxation. Do you know why TDS is deducted from your salary or remuneration and how it can be claimed? If not, read on to know more.

Here’s all you need to know about TDS - Tax Deducted at Source.

TDS - Tax Deducted at Source

TDS - Tax Deducted at Source is a means of collecting tax and is definitely a part of Income Tax. In TDS, tax is collected at the source. This article is all about TDS, its benefits, everyone eligible to file TDS, and a walk-through of the entire process.

To explain TDS in simpler means, any person earning income above Rs.2.5 lakhs is supposed to pay tax to the Government. According to TDS, the tax amount of a person is deducted in advance from the source and then the net amount is received as a person’s income (amount apart from the deducted tax). This deducted tax amount is adjusted later against his/her final tax liability. TDS Return is filed through which part of this amount can be claimed later on. He/she receives credit for the amount that is deducted and already paid on his/her behalf.

A better view can always be attained through examples. Let us assume an employee working in a company gets a monthly salary of Rs.50000. But the employee would not get Rs.50000 in hand. Instead, he/she would get an amount of Rs.45000 after the tax payable has been already deducted by the employee. This certain amount being deducted at source will be paid to our government. This process is called Tax Deducted at Source (TDS). Generally, the tax deductions fall in the range of 1% - 10 %

When should TDS be deducted?

Now, if you are wondering if this, is applicable to everyone? It certainly is not. Mentioned below is the list of criteria that says who is applicable for filing TDS and who it is not. Firstly, any individual making payments that come under the Income Tax Act is supposed to deduct TDS at the time of making such payments.

• Also, this need not be done for any individual or Hindu Undivided Family (HUF) whose accounts do not require any auditing.
• However, in a case such as rent payments that are made by either individuals or Hindu Undivided Families (HUF) crossing Rs.50000 are supposed to deduct TDS at a rate of 5% even if they are not liable for a tax audit without TAN(Tax Deduction and Collection Number).
• The rates at which a person deducts TDS vary. An employer deducts according to the income tax slab rates whereas a bank can deduct at 10% and can also deduct at 20% if it is without a PAN card.
• There is also a possibility of not deducting taxes. If proper investment proofs are being submitted to an employer beforehand and your total income becomes less than Rs.250000, then TDS cannot be deducted and you do not need to pay tax.
• In the same way, you can submit Form 15G and Form 15H to the bank. The bank won't deduct TDS from the interest provided your income is less than the taxable limit.
• Suppose if TDS has already been deducted even if it shouldn’t have, it can be reclaimed by filing a return.

Benefits of TDS Filing

“Is there any need for us to do all this?” is a question that needs to be answered. Firstly, we need to abide by the laws of our Government as this is mandatory as per the IT Act of 1961. There are a lot of benefits to TDS but the most important one is to prevent tax evasion. TDS makes sure that the tax is paid by all of us on time and that the government can use it for our welfare. TDS also makes finance much easier as an equal amount is deducted every month and not a large amount once every financial year. So, it helps in paying taxes on time without any penalties.

TDS is a very simple process and can be done online. There wouldn’t be any mistakes as it is all computerized making tax calculations easier and more accurate. No paperwork needs to be done in this process which also saves us time. Since the amount that is to be deducted each month will already be known by a person, they can plan their monthly needs accordingly and also needn’t worry about saving money to pay their taxes later on.

How can we deposit TDS?

As we already know, TDS will be deducted at the start of every month for example from a salary. The person who is responsible for deducting these amounts is the one who is responsible for depositing the deducted amounts to the government on a given due date. The TDS can be deposited using the challan ITNS-281 via the government portal. A person must deposit the sum by the 7th of the consequent month. For example, if TDS is being deducted on May 1st, the amount must be deposited by June 7th. However, there is one exception. TDS deducted on March 1st has time to be deposited until April 30th. TDS that is deducted for purchasing properties or on rents are all 30 days due from the month-end that TDS is being deducted.

Steps To Make TDS Payments Online:

Payments can be deposited online easily by doing the following steps.

• Open the NSDL’s official website and click on “e-payment of taxes”. Here challan number ITNS 281’ should be selected which will re-direct you to another page.
• Select the challan and all the details that are to be filled will be shown.
• There will be an option “Tax Applicable”. Under this, “Company Deductees” should be selected if the payment has been made to a company, else “Non-Company Deductees” should be selected.
• The assessment year and TAN has to be entered. TAN is the Tax Deduction and Collection Number. This is a mandatory 10-digit number that all the people deducting, collecting, and depositing the deducted amount to the government should have.
• Also, enter basic details such as “Pin Code” and “State”.
• Select the correct nature and mode of payment according to your needs and submit it.
• Now, a confirmation screen will be visible. The taxpayer’s full name will be displayed only if the TAN has been entered correctly. So make sure that the TAN entered is correct.
• After it has been verified, the next step is to make the payment. The webpage will be re-directed to your net banking site and so you will need to enter your login credentials and make the required payment.
• A counterfoil will be received on successful payment which will have the CIN number, bank, and payment details. It will act as proof of the payment you have made.
• Now, you have successfully done the TDS payment and have to do the TDS Return filing which is a quarterly filing.

Online payment can be used by all those who can do net banking. The status can also be checked using two methods, either the CIN-based view or the TAN-based view.

Checking the status online:

• Visit  this website and enter the captcha to proceed through this website.
Click Here Visit Above website
• Enter the PAN of the deductee and the TAN of the deductor.
• Also enter the financial year, quarter, and type of return and select “go”.
• Now, you can view the status in the e-filing of the website.

If a person doesn’t complete it before the deadline then they will have to pay a small interest at a rate of 1.5%. So, this is all about TDS and the entire process of deducting and depositing the deducted amount.

When should we File a TDS Return?

Now, let’s learn how to file TDS Returns online. TDS Returns must be filed quarterly and details like TAN, type of payment, amount of TDS deducted, and PAN of deductee and deductor, amount of tax paid to the government is required. Also, there are different forms that exist for filing TDS returns depending on the purpose of TDS deduction. Firstly, Form 26QTDS on all payments except - Q1 - 31st July, Q2 - 31st October, Q3 - 31st January, Q4- 31st May.

TAN Registration:

Tax Deduction and Collection Account Number better known as TAN is a 10-digit alphanumeric number. The number is required to be obtained by all persons who are responsible for deducting or collecting the tax.

The alphanumeric number is allotted by the Income Tax (IT) Department under Section 203A of the Income Tax Act, 1961. It is required to be mandatorily quoted on all TDS returns.

Who Needs to Apply for TAN?

All those who are required to deduct or collect tax at source on behalf of the Income Tax department need to apply and obtain the 10-digit alphanumeric TAN.

TAN Registration Made Simple & Easy

What is TAN?

TAN stands for Tax Deduction and Collection Account Number. TAN is a 10-digit alphanumeric number provided by the Income Tax Department to individuals who execute Tax Deduction at Source (TDS) and Tax Collection and Source (TCS). Section 203A of the Income Tax Act, 1961, mandates that whosoever deducts tax at the source holds a TAN number to carry out the tax deduction process. TAN is usually mentioned in every TDS/TCS return, TDS/TCS certificate, and TDS/TCS challan. TAN is mandatory in certai cases, if not the returns filed won’t be accepted and banks do not accept the challans for TDS/TCS payments.

Note: A penalty of Rs.10,000 will be imposed on those who fail to apply for TAN or do not have a TAN number in the specified documents.

Table of Contents

• What is TAN?
• Who are eligible to apply for TAN?
• What is the Structure of TAN?
• Why is TAN necessary?
• What documents are required for TAN registration?
• How to apply/register for TAN?
• How to check the status of TAN Registration?
• Correction of TAN
• TAN - Key Highlights

Who are eligible to apply for TAN?

All those who pay a salary or a commission to other individuals need to have a TAN. It also includes central, state, or local authorities. It could be an autonomous body, a company, a statutory, Hindu Undivided Family (HUF), sole proprietor, the association of persons, or trusts. As mentioned above, all those who deduct or collect tax at source on the behalf of the Income Tax Department need to apply and obtain a TAN..

What is the Structure of TAN?

The first four characters are letters, the next five characters are numbers and the last character in the TAN number is again a letter. The structure of the TAN number has been updated in the last few years. The first three characters of the 10-digit alphanumeric number indicate the jurisdiction code while the next character highlights the deductee’s name. The next five characters are represented by a five-digit number and the last character is an English alphabet.

For example, if a TAN is allotted to a person named Vikram from Chennai, the TAN appears as follows CHE V 3678 N. Here, V indicates the name Vikram followed by five digits ending with an alphabet.

Why is TAN required?

• TAN is used for deductions such as salary, dividends, and interest. While paying taxes, challan type 281 must be used. The TAN number should be mentioned correctly along with the deductor’s name and address.
• TAN is a unique 10-digit number with lifetime validity.
• TDS certificates are issued by those who hold a TAN number. So, the taxpayer gets to know how much tax has been deducted.
• Also, taxpayers can use this TDS certificate as proof of taxes paid in any grievances.
• It is mandatory to quote TAN in all tax-related documents.
• It automatically captures the Postal Index Number and the address of the person who deducts TDS on behalf of the IT department.

Note: It is illegal for a person to have more than one TAN. But, you can apply for separate TAN for each branch and division.

What documents are required for TAN registration?

There are no specific documents required for TAN registration but certain important details need to be furnished during the process.

• Applicant’s information - Name, address, contact, signature, etc.
• Address proof - Aadhar card
• Certification of incorporation for a company, LLP, etc.
• Agreement made for a partnership firm.

On furnishing the above details, an acknowledgment slip will be generated. Save and print the acknowledgment slip for future reference. Credit card/debit card/net banking mode can be availed if the payment is done online. If the mode of payment is offline, then a DD (Demand Draft) or challan in the name of NSDL-TIN should be sent to the NSDL office.

How to apply/register for TAN?

Get legal assistance from our experts at expert tax Filer to register for TAN. The TAN registration process is simple and can be done either offline or online.

1. Offline Mode

If the applicant wishes to apply for TAN via offline mode, then he/she has to fill up Form 49B in duplicate and submit it to any TIN (Tax Information Network) Facilitation center.

In case the applicant is a company that is not registered under the Companies Act, 2003, then the application should be made via Form No INC-7. The allocation for the Tax Deduction Account Number can be made via Form No INC -32 (SPICe).

The TIN-FC addresses is available on the official NSDL-TIN website. On applying, a processing fee must be paid by cash, DD, or cheque at the TIN-FC counter.

2. Online Mode

• A TAN number can be obtained by logging on to the  NSDL-TIN  website.
• Choose TAN  under the  Services  drop-down menu.
• Click on  New TAN.
• Now, a page will be generated called  Form 49B.
• Enter all the mandatory details required. For example, Name of the company/indivdual/ contact number, etc.
• On filling in all the necessary details, click  Submit button and you will be directed to the payments page.
• After confirmation, an acknowledgement screen is displayed which has
• A 14-digit acknowledgemet number
• Name of thee applicant
• Status of the application
• Contact information
• Payment details
• Space for signature

The applicant must save the acknowledgement slip and take a printout of it for further reference.

The processing fee for issuance of a new TAN or correction of an old TAN data is Rs.65 (Rs.55 is the application charge + 18% GST). The payment can be done either online or offline. If the payment is done online the application will be submitted instantly.

The required documents along with the printout of the acknowledgement should be sent to Protean eGov Technologies Limited at

NSDL - e-governance Infrastructure Limited,
5th floor, Mantri Sterling
Plot No. 341, Survey No. 997/8,
Model colony,
Near Deep bungalow Chowk,
Pune - 411016.

Important:

1. Do not forget to mention “Application for TAN “ and the acknowledgement number at the top of the envelope. The application will reach the destination in 15 days and shall be processed only if it has a properly signed acknowledgement and realization of payment.

2. TAN application can be done on Form 49B only. Application requests typess out on a piece of paper is not valid. All the details must be entered in capital letters only.

How to check the status of TAN Registration?

• Applicants can check their status of TAN application using TRACK STATUS facility by entering a 14-digit acknowledgement number.

• Visit the official Tax Information Network (TIN) website of the Income Tax Department.
• Choose the application type, i.e, TAN
• Enter a 14-digit acknowledgement number.
• Enter the applicant’s name as mentioned in the application
• Enter the Date of Birth
• After this, the status of the TAN application can be viewed.
• The status of the TAN application can also be tracked by sending an SMS - NSDLTAN to 57575.

Correction of TAN

If you would like to make any corrections or changes in the details mentioned in your TAN, you must fill up a change request form via the NSDL website. The following documents need to be submitted along with the chage request application.

1. Proof of TAN (current)
2. Proof of TAN that is to be cancelled
3. A relevant documented proof to support the request to change or correct certain details in your TAN.
4. Printout of TAN details or TAN allotment letter

TAN - Key Highlights

• An individual required to deduct tax under Section 194-IA can use PAN instead of TAN.
• Tax Deduction Account Number (TAN) is not required to deduct tax under Section 194 M or 194-IB.
• Quoting a false TAN may lead to a penalty of Rs.10,000 under Section 272BB(1) of the Income Tax Act.
• Section 194 M offers tax deductions at the rate of 5% fro the amount charged or credited to a resident in a year for contract work.

Reply to Notices:

Now a days people are getting different types of notices/intimations from the Income Tax department by different modes such as delivery by post or by an e-mail. Below information to know about different types of notices and how to understand it.

Notice for scrutiny assessments u/s 143(2) r/w section 142(1)

These notices are generally received if you undertake a high value transaction or show some point in the return of income which is unusual from the previous year. Generally, these notices are made out on the basis of a Computer aided scrutiny selection system where the assesse meets the criteria as defined for issuing notice of assessment.

The Taxpayer when he receives such a notice in order to draft a proper reply to the same. Need to contact us immediately for Expert guidance.

Notice for non-filing of income tax return

This type of notice is generally received when a person fails to file the income tax return for a particular year(s) when he had filed the same for the previous years. This notice is also given to people who enter into high value transactions but have failed to file the return. Also in case of salaried individuals, many employees do not file returns in a belief that entire tax is deducted from their salary hence they do not have file the return. This leads to service of a notice from the ITD.

Notice for non-disclosure of income:

If you have not shown any income in the ITR such as Bank Interest, Income from shares or Mutual funds then you will get a notice from the IT Dep’t. for that. This generally arises due to income not being shown on which tds is deducted or Income for which information is supplied to the ITD in AIR. Therefore always match the return of income with the form 26AS relating to tax credits and ensure that all incomes are shown as in form 26AS. If the incomes are not shown as in form 26AS, then file a revise return for the same if the time for filing the revised return is not yet over. (Time limit for filing revise return is one year from the end of the relevant assessment year to which the original return relates). If the time limit for filing the revise return has already expired then file a revised computation along with a suitable reply to the notice. Taxes if any that remain to be paid due to the revised computation should be paid along with applicable interest and a copy of the Challan should also be attached with the reply.

Notice for belated filing of return

If you have not filed the IT Return by the due date, then you could receive a notice for filing the same. The ITD selects a date upto which it analysis as to who has filed the return and who has not done so and sends a notice to the non-filers. If you have also received then do not worry Then we will prepare your return we will File ASAP.

Notice for Tax Credit Mismatch in the ITR

This intimation is generally given by the Income Tax Dep’t. when there is mismatch in the TDS claimed in the ITR & TDS actually showing in the Form 26AS. You need to identify the exact reason for mismatch in TDS and file a rectification/ revise return accordingly. You may need to get the TDS corrected in the form 26AS first before filing any rectification/revision.

Notice u/s 245 for adjustment of refund with any demand due

whenever you claim a refund in the ITR, the Income Tax Dep’t. can adjust this refund against any demand pending for the earlier assessment years. Before adjusting the refund, the ITD gives an intimation of the amount of refund & demands determined and provide a period of 30 days to reply to the said intimation failing which the refund will be adjusted with pending demands. Whenever you receive such a notice, the first thing to do is to examine the demands for the earlier years. Once the reasons for the demands are identified, then take steps to rectify such demands by filing rectifications/revisions/payment of demand etc. Once the above steps are taken, then suitably reply to the ITD that you have taken steps for corrections of the demands and that the demands are incorrect and so the refund amount should not be adjusted against such incorrect demands. Make sure to reply within 30 days of the receipt of the notice.

Notice u/s 139(9) for filing defective return

This notice is generally received when there is a mistake or a defect in the return filed. The assessed has 15 days to reply to such notice. If the assessed does not reply within 15 days the return will be deemed as not filed. Whenever you get such a notice, first check what is the issue. Once you know the problem/mistake then correct such mistake and file the response to notice under section 139(9) by generating the xml file again and uploading in e-file tab in the income tax login under the heading e-file in response to notice u/s 139(9). Here the filer has to select the assessment year and the form number.