Listed below are typical reasons taxpayers could possibly get earnings taxation notice and just how they could be avoided by them.

1. For delay filing I-T return when you yourself have perhaps not filed your return by the due date, you can expect to get a reminder notice through the tax division. You will get this notice ahead of the end regarding the assessment year which is why the return arrives.

Saraswathi Kasturirangan, Partner, Deloitte India stated that filing income tax return in which the person has taxable earnings is mandated under section 139(1). The notices for non-filing by the deadline are generally speaking automatic reminders which point l out of the responsibility under section 139(1) and remind taxpayers to register their comes back in order to prevent charges. “However, a notice under section 142(1 i that is)( might be released needing the taxpayer to furnish the return if you don’t filed inside the deadline,” she stated.

You will have to pay a late filing fee if you do not file your return by the due. Thus, in the event that you miss out the due date and register a belated return when it comes to present economic 12 months before December 31, 2019, then you can need to pay a penalty of Rs 5,000. Nevertheless, this penalty increases to Rs 10000, in the event that ITR is filed on or after January 1, 2020.

In order to prevent getting notice: you need to register ITR prior to the due date for filing ITR for a specific assessment 12 months.

2. Misreporting LTCG from equity You’ll want to report any realised long-term money gains (LTCG) on listed equity and equity-related shared funds during the time of filing ITR.

LTCG above Rs 1 lakh in per year on listed equity and equity-related funds that are mutual which STT happens to be compensated will likely to be taxed at ten percent. Reporting LTCG on equity are a bit complex for taxpayers through the economic 12 months 2018-19 onwards. [Read more…]