Received a Tax Demand or Non Compliance Notice? What should you do if you get a notice?
In case, any notice is issued by Department of Income Tax, it is always advisable to contact a tax professional or a chartered accountant who can understand the nature of the notice and based on which decide the next course of action. Adhering to the notice and reply is a must. One should follow the same strictly.
Non filing of Income Tax Return whose taxable income is more than threshold limit of Rs 2,00,000 can lead to heavy penalties and interest up to 300% of the tax demand outstanding if any.
The Income Tax Department (ITD) is sending show cause notices to all the tax assessee for non filing of their tax returns since FY 2008-09 AY 2009-10 onwards
E-filing of Income Tax Return is mandatory for all the tax assessee whose gross total income is over Rs 5,00,000 for FY 2012-13 and onwards. No paper return will be entertained.
Belated Income Tax Return could be e-filed for the last two previous years i.e FY 2013-14 (AY 2014-15) and FY 2014-15 (AY 2015-16). The last day for filing of tax returns for FY 2013-14 (AY 2014-15) was 31st March 2016.
Income Tax Department can levy penalty of Rs 5000 for non filing of tax return other than interest on tax outstanding. Assessing Officer is empowered to levy the penalty.
CA Ankush Garg
M R Garg & Associates
Chartered Accountants
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