Filing your IT returns on time is such a big relief. So you could be someone who filed the IT returns on time i.e. by the end of July and now you are relaxed that nothing could go wrong from here. You are sitting in your office in the best of your moods, when all of a sudden you get a letter from the IT department and is basically an IT return Notice.You feel that it is an acknowledgement and appreciation from them for you because you did everything right this time. However, when you open the letter you find that it is an IT return notice saying that you still have the tax dues.
Now you start scratching your head in wonder whether what could go wrong? You had all your income sources declared and the ones you did not declare could not have been caught IT department’s attention. Perhaps you did not know that IT department is getting stricter with the tax evaders and filling up all the lacunas that allowed you to get away with evasion previously. We are providing 3 basic reasons when you can get IT return notice when you have filed your IT return on time.
3 Reasons to get IT return Notice
Do you know that interest is also taxable?
Majority of the people think that the interests they earn on their savings from the bank are tax free. However, this is a common misconception. Any interest that you earn from your bank deposits is subject to taxes as per the law. Therefore, if you have a fixed deposit that earns you certain amount of interest in five years is taxable. While declaring your income, you need to include the interest amount as well. If you do not do that, the IT department will send the notice to you.
Remember that if you are earning the interest from your savings account, then it will be exempt from taxes.
Are you claiming HRA tax exemption?
Sometimes you think you are smart and IT department will never be able to catch you. However, IT department seems to have learnt how to outsmart the smart people. But sometimes there is a genuine mistake made by you because of ignorance to the rules.
For instance, if you have been claiming the HRA exemption for years without any hassle, you may have been given the notice for it this time. This is because as per the new rule if you are claiming the HRA exemption for the house rent that exceeds INR 100,000 per year, you need to provide the PAN number of your landlord. If you did not provide the PAN card number and the rent exceeds 100,000 then the IT department will send the notice to you.
You cannot get away by giving the money to your family
Some people think that investing the money in the name of their immediate family members or spouses will not come to the notice of the IT department and they will get away with tax evasion. However, again this is a myth. IT department is smart enough to track down all your incomes and transactions. They not only track your incomes and transactions, they track the bank accounts of everyone in your family. So if you received the notice even after filing the IT-return on time, this could be one of the reasons.