Avoid These Mistakes to Avoid Income Tax Notices

• January 15, 2021
• CA Chandan Agarwal's Office

INTRODUCTION: There has been a spike in the number of tax notices to Assessees because the Income tax department is now equipped with an integrated database on taxpayers which allows them to track almost all financial transactions by analyzing information through Annual Information Return (AIR), Statement of Financial Transactions (SFT), Centralized Information Branch (CIB), TDS/TCS Statement, Securities Transaction Tax (STT), exchange of information with various entities having MOU with CBDT etc.

The 10-digit PAN, which’s mandatory for all high value transactions, not only enables the tax department to know how much you have earned, but also provides information on how you have been spending and investing this money. There may be many types of discrepancies found in the ITR filed by you like concealment of taxable income, non-filing of ITR, etc. The Income Tax Department issues notices under sections-139(9),143(2),148,156 and 245 of the Income Tax Act, 1961 seeking the satisfactory answers in this respect.

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