{"id":55,"date":"2019-06-18T11:59:22","date_gmt":"2019-06-18T06:29:22","guid":{"rendered":"https:\/\/aktassociates.com\/blog\/?p=55"},"modified":"2020-01-09T14:52:29","modified_gmt":"2020-01-09T09:22:29","slug":"mistakes-that-can-fetch-you-an-income-tax-notice","status":"publish","type":"post","link":"https:\/\/aktassociates.com\/blog\/mistakes-that-can-fetch-you-an-income-tax-notice\/","title":{"rendered":"Mistakes That Can Fetch You An Income Tax Notice"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">A Delhi-based financial professional once received a letter for not deducting TDS when he bought a flat, the previous year. In his part, he said, \u201cI had no idea that I was supposed to deduct 1% of the value of the house and deposit the amount with the government on behalf of the seller.&#8221;<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-736 aligncenter\" src=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/06\/Mistakes-That-Can-Fetch-You-An-Income-Tax-Notice.jpg\" alt=\"Mistakes That Can Fetch You An Income Tax Notice\" width=\"700\" height=\"400\" srcset=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/06\/Mistakes-That-Can-Fetch-You-An-Income-Tax-Notice.jpg 700w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/06\/Mistakes-That-Can-Fetch-You-An-Income-Tax-Notice-300x171.jpg 300w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/06\/Mistakes-That-Can-Fetch-You-An-Income-Tax-Notice-20x11.jpg 20w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">These instances nowadays are very common because the tax department has strengthened the tax policies by using advanced IT tools. They have stepped up efforts to ensure tax compliances. Officials are seen cracking down on invasions under to new rules of tax leak. Tax records are being put under the scanner and notices are being sent to individuals if the computer-aided selection system notices a discrepancy. Here is a list of Top mistakes of omission and commission which can get you an invite for a Chai Pe Charcha with Income-tax Department and trust us it won&#8217;t be that nice as it sounds.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >In this article, we will discuss about...<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #1e73be;color:#1e73be\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #1e73be;color:#1e73be\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/aktassociates.com\/blog\/mistakes-that-can-fetch-you-an-income-tax-notice\/#Not_Reporting_Interest_Income_and_Other_Incomes\" title=\"Not Reporting Interest Income and Other Incomes\u00a0\">Not Reporting Interest Income and Other Incomes\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/aktassociates.com\/blog\/mistakes-that-can-fetch-you-an-income-tax-notice\/#Income_from_the_Previous_Job_after_a_job_Change\" title=\"Income from the Previous Job after a job Change\">Income from the Previous Job after a job Change<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/aktassociates.com\/blog\/mistakes-that-can-fetch-you-an-income-tax-notice\/#Not_Filing_TaxReturn_On_Time\" title=\"Not Filing TaxReturn On Time\">Not Filing TaxReturn On Time<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/aktassociates.com\/blog\/mistakes-that-can-fetch-you-an-income-tax-notice\/#Not_Reporting_Property_Transactions\" title=\"Not Reporting Property Transactions\">Not Reporting Property Transactions<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Not_Reporting_Interest_Income_and_Other_Incomes\"><\/span><strong>Not Reporting Interest Income and Other Incomes\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Yes, To be precise we are talking about &#8216;interest&#8217; income that comes from fixed deposits, recurring deposits and even saving the bank. Although Interest earned on saving A\/c up to Rs 10K is exempt it&#8217;s no that you need not report it. Hence Either other incomes are small or big, taxable or exempt, You need to disclose it when filing your return. Don\u2019t even think to hide it as they have access to your all income source just by referring your PAN No and Now even using aadhar card.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Income_from_the_Previous_Job_after_a_job_Change\"><\/span>Income from the Previous Job after a job Change<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Every time an individual switches jobs, he is usually found fails to report income from the last employer to their new employer. This may happen purposely or by ignorance or just like that. This happens because they don\u2019t feel the need of associating the previous earning details with the present one and this leads to the creation of new tax exemption and deduction to the employee. Instead of Rs 2.5 lakh basic exemption and Rs 1.5 lakh deduction for tax saving investments under Section 80C, he gets Rs 5 lakh basic exemption and Rs 3 lakh deduction. Thereby, he ended up paying much less tax than he was supposed to pay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is a common problem faced by people who switch jobs without keeping an eye on their taxes. They are saddled with a huge tax liability along with interest on late payment of tax when they sit down to file their tax returns in June-July.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The proper way is to submit the details to HR of the new company and consult a CA to understand the impact and pay differential taxes as soon as they realize it.<\/span><\/p>\n<p><a href=\"https:\/\/aktassociates.com\/business-compliance\/tax-compliance\/tax-notice-reply\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-3310\" src=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/12\/noticead.jpg\" alt=\"\" width=\"700\" height=\"150\" srcset=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/12\/noticead.jpg 700w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/12\/noticead-300x64.jpg 300w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/12\/noticead-20x4.jpg 20w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Not_Filing_TaxReturn_On_Time\"><\/span>Not Filing TaxReturn On Time<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Taxpayers, irrespective of their age are bound to file their tax returns. Anybody with an income above the basic exemption is liable to file his tax return. The basic exemption is Rs 2.5 lakh per year for people below 60, Rs 3 lakh for senior citizens above 60 and Rs 5 lakh for very senior citizens above 80. The rest of the people need to apply.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But again, for example, if one&#8217;s annual income is Rs. 4.2 lakh and an investment of Rs 1.5 lakh is made under the section 80C, then the tax comes down to 0 but the filing of income tax still required even your tax liability is NIL. There is this misconception with many taxpayers that if the tax liability is NIL there is no need to file, which is completely wrong.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For a lot of people, the confusion stems from a rule introduced four years ago, where salaried individuals with an income of up to Rs 5 lakh a year were exempted from filing returns. However, that rule has long been withdrawn.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Not_Reporting_Property_Transactions\"><\/span>Not Reporting Property Transactions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As salaried taxpayer most of you might be well versed with form ITR 1, however, in the year when you have any property related transaction such as buy or sale of the property, A different form needs to be filed, i.e. ITR 2. Most of the Salaried employees either don\u2019t report such transaction as there is no place to report such transaction in ITR 1 or simply file it in the wrong way, leading to tax notices.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Proper way is to seek an<\/span> <span style=\"font-weight: 400;\">honest opinion<\/span><span style=\"font-weight: 400;\"> from an Expert firm before filing such return.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Just simple step a little bit of guidance from an<\/span><span style=\"font-weight: 400;\"> expert tax filing firm<\/span><span style=\"font-weight: 400;\"> can avoid a lot of incipience of handling an IT Return Notice.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">AKT Associates<\/span><span style=\"font-weight: 400;\"> is a leading online tax filing firm, we can help you to file your return properly and assist in making proper tax planning to save taxes.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Delhi-based financial professional once received a letter for not deducting TDS when he bought a flat, the previous year. &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Mistakes That Can Fetch You An Income Tax Notice\" class=\"read-more button\" href=\"https:\/\/aktassociates.com\/blog\/mistakes-that-can-fetch-you-an-income-tax-notice\/#more-55\">Read more<span class=\"screen-reader-text\">Mistakes That Can Fetch You An Income Tax Notice<\/span><\/a><\/p>\n","protected":false},"author":4,"featured_media":284,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Mistakes That Can Fetch You An Income Tax Notice AKT Associates<\/title>\n<meta name=\"description\" content=\"These instances nowadays are very common because the tax department has strengthened the tax policies by using advanced IT tools. 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