Do you know that your tax return may be picked for random scrutiny? It is quite possible that you receive a notice from the Income-Tax Department for old dues or ambiguous income. Sending scrutiny notice under section 143 (3) has become a style for the department to develop seriousness in people regarding tax compliances.
Notices are also served on demand of the individual after applying for a rectification petition during filing of return under section 154, most probably due to mismatch in TDS or income amount, as well as when the details required are not specified under section 143 (2) of the Income-Tax Act, 1961. The AO (Assessing Officer) can make a regular assessment after a detailed enquiry under section 143 (2).
Notice under section 143 (1) is served to the assessee regarding intimation about the calculation mistake or error in filing return or claiming excessive deduction or wrong exemption found in processing of income tax return. The purpose is to inform the person about the difference between the return filed by him and the computation as per the IT department, which result in creating the situation of amount payable or amount refundable.
Do not panic and never try to ignore the notice. Because this ignorance may lead to a fine, that can be extended up to Rs 10,000, apart from the penalty of tax and interest. So, as per the notice, you must meet the AO with all the relevant documents. Following points should be taken care of before meeting the assessing officer:
Submit the file and ask for the acknowledgement on a copy of the cover letter attached to the file and preserve it. It acts as an evidence of submission of the concerned articles along with details of each document.
If some of your old dues come out after the process, they can be adjusted against your pending refunds, if claimed.
If the case is complicated, it is better to take the help of a professional like CA, CS, advocate etc. He will make you understand about the demand in the notice and about the supporting documents needed. A professional will also help in preparing an appropriate response at the time of appearing before the AO and things might get resolved with ease.
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