ITR filing: Income tax department may impose penalty of up to 200% of your actual tax outgo. Check details
₹1 lakh without disclosing the PAN of their landlords (as per Section 10(13A)). “Unfortunately, some individuals have been taking advantage of this provision, leading to a surge in cases where taxpayers are receiving notices from the tax department, asking for proof to validate their tax exemptions," said Abhishek Soni, CEO and Co-founder Tax2win. To scrutinize the genuineness of such claims, the Income Tax Department is adopting a comprehensive approach.
“They are conducting a 360-degree profiling of individuals by analyzing data from ITRs and cross-referencing it with information obtained from external sources, including verifications from taxpayers themselves," said Soni If discrepancies are detected, the tax department may issue notices to these taxpayers. If it is found that income has been under-reported, the department has the authority to impose a penalty of up to 200% of the tax applicable on the misreported income, he added. 1)Let's ensure honest tax compliance to avoid trouble.
2)Use a valid rental agreement. 3)Prefer online or cheque rent payments. 4)Mention the landlord's PAN for payments exceeding ₹1 lakh.
5)Keep records of utility bill payments. 6)Obtain a PAN declaration from the landlord if not available. The Income Tax Department issues an income tax notice for a number of reasons under a number of provisions.
Normally, a taxpayer receives an income tax notice as a result of missing or filing their income tax return late, filing it incorrectly, claiming an incorrect tax refund, and many other reasons. The income tax notice is issued by the tax department under sections 143(1), 142(1), 139(1), 143(2), u/s 156, Section 245, and Section 148. Disclaimer: The views and recommendations made above are those of
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