What is the story about?
ITR Filing Simplified: The Income Tax filing for the Financial Year 2026 is in full swing, and one common unsettling aspect that impact the taxpayers is receiving
an income tax notice from the Income Tax Department. This can not be a major factor to worry as notices are issued for routine reasons such as mismatches in reported income, discrepancies between tax returns and financial records, high-value transactions, delayed filing, or incorrect claims for deductions and exemptions. But it is advisable to follow the required guidelines carefully and avoid coming into the lens of IT Department.
Error in TDS amount:
One of the common mistakes taxpayers make is the mismatch in the TDS amounts. It happens that the employer may have delayed or made a mistake filing their TDS returns. Such errors lead to no tax credit situation for the deductee.
In such case, it is advisable to request your employer to revise the TDS amount credited to you.
Investments in the Name of Spouse:
There are cases, when you have made investments in the name of your spouse, children or relatives. Mostly, these investments are in the categories of land, buildings, fixed deposits, mutual funds, shares.
Any income you generate out of these mutual funds is still considered your income. And in this case, you will be taxed for it.
You need to ensure that you declare such income at the time of filing your return.
Discrepancies:
There are cases when the department identifies discrepancy in the returns filed by the taxpayers.
Discrepancies can arise due to multiple reasons. It can happen that the taxpayers might have forgotten to declare some incomes, claimed a deduction under the wrong section, incomplete information among others.
Transactions of high-value:
In case of high value transactions, it is advisable to update the Income Tax department. This is to ensure that taxes are levied as required on each of these transactions.
Failed to file tax returns:
The Income Tax Department reminds you in case of non-filing of the tax returns. IT department can remind you about unfiled returns for the previous six assessment years.
Delays can also lead to a penalty with the taxes unpaid in such cases of delayed filing, the assessee is charged 1% interest per month from the due date.
