Not disclosed interest on FD, bank savings? Be ready for Income Tax Dept notice

0
261

Many taxpayers who did not disclose high-value income in their income tax return (ITR) for the financial year 2019-20 have received scrutiny notices from the Income Tax Department.

“The Income Tax Department has identified high value information which does not appear to be in line with the Income Tax Return filed for Assessment Year 2020-21 (relating to FY 2019-20). Please revise ITR / submit online response under e-Campaign tab on Compliance Portal (CP). Access CP by logging into e-filing portal and clicking on ‘Compliance Portal’ link under ‘My Account’  or ‘Compliance’ tab  – ITD,” reads the SMS sent to assesses.

There could be multiple reasons for taxpayers receiving the I-T notice. The prominent ones being non-reporting of FD interest and savings bank account interest in the ITR. If the data provided by bank does not tally with the information provided in the ITR, the I-T department can send a notice. This, however, doesn’t mean that the taxpayer has been found guilty of committing a fraud. The taxpayer just needs to clarify the reason to the tax department or file a revised ITR.

“Banks file AIR (Annual Information Return) every year, which carries details of high-value transactions such as fixed deposits. The Income-Tax Department has started comparing AIR with ITR filed by the assessee. On the basis of such comparisons, the department is sending messages and emails to all such assessees. Many of my clients have received such emails over the last few days,” says Chartered Accountant Ankit Gupta.

There could be multiple reasons for taxpayers receiving the I-T notice. The prominent ones being non-reporting of FD interest and savings bank account interest in the ITR. If the data provided by bank does not tally with the information provided in the ITR, the I-T department can send a notice. This, however, doesn’t mean that the taxpayer has been found guilty of committing a fraud. The taxpayer just needs to clarify the reason to the tax department or file a revised ITR.

READ  ICICI Bank to provide COVID-19 vaccine to employees, families free of cost

“Banks file AIR (Annual Information Return) every year, which carries details of high-value transactions such as fixed deposits. The Income-Tax Department has started comparing AIR with ITR filed by the assessee. On the basis of such comparisons, the department is sending messages and emails to all such assessees. Many of my clients have received such emails over the last few days,” says Chartered Accountant Ankit Gupta.