Income Tax Return: If you have claimed a fake deduction or exemption in the income tax return, then you may be in trouble. Recently, several reports have said that the Income Tax Department is sending notices to salaried taxpayers asking for proof of tax exemption and deductions claimed by them in the ITR. In such a situation, if the information claimed in the proof is wrong, the Income Tax Department can take appropriate action.
While filing income tax returns, taxpayers have to opt for the old tax regime to claim deductions. Under this, the deduction can be claimed. However, experts say that taxpayers claiming fake or fraudulent deductions in their income returns may attract the attention of the Income Tax Department and may be sent notices.
What to do after receiving the notice -
If the Income Tax Department is sending you a notice, then tax experts say that salaried individuals should make sure to respond to any notice from the Income Tax Department on time. If you respond to the notice late, the matter may worsen. Additionally, if proof of exemption is sought by Income Tax, taxpayers will have to provide all supporting documents such as any relevant receipts, vouchers, challans, or any other documents.
How much time does it take to respond?
After receiving the notice, taxpayers get 15 days to respond. However, if they are unable to respond within the stipulated time limit then they can request the local assessing officer to extend the time limit.
How to respond to income tax notice -
It is advisable to respond to the notices of the Income Tax Department on time. If you do not respond on time, it can have serious consequences. It is very important to know what the notice is about. In such a situation, all the documents should be collected. You can take advice from any chartered accountant. Prepare a draft answer, then submit your answer in the manner given in the notice.
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