<div><em>New initiative by the income tax department makes life easier for taxpayers who are served notice after scrutiny of their income tax return, writes <strong>Sunil Dhawan</strong></em></div><div> </div><div>Getting a notice from the income tax department has a direct effect on one’s heartbeat. One should, however, not panic and address the issues raised by the department especially when one is not on the wrong side of taxes. </div><div> </div><div>Scrutiny of income tax return may occur primarily because of understating of income or computing of excessive expenses thus leading to under-payment of tax. There may be an instance when you haven’t disclosed a certain income. For a salaried employee, where the taxes are deducted by the employer as TDS and has no other income under other heads, the probability of such notice is minimal. </div><div> </div><div>The scrutiny is assessment of the income tax return and its giving an opportunity to taxpayer to explain to the officer the income, expenses, losses, deduction availed are factually correct with the aim of ascertaining any under-reporting of taxes. </div><div> </div><div>Under section 143(3) of the Income Tax Act, the returns filed earlier may also be reopened. There is a provision to reopen a case within a period of six years from the end of the relevant assessment year. </div><div> </div><div><strong>Online scrutiny: </strong>On receiving the notice, one has to physically reach the assessment office of income tax department and explain to the officer the reason for mismatch. There is good news on this front. </div><div> </div><div>An “e-Sahyog” pilot project has been launched by the income tax department which aims at reducing the need for the taxpayer to physically appear before tax authorities. The objective of “e-Sahyog” is to provide an online mechanism to resolve mismatches in Income-tax returns of those assesses whose returns have been selected for scrutiny, without visiting the Income Tax Office. </div><div> </div><div><strong>Here are the steps for the notice to be addresses online by the tax payer.</strong></div><div>•<span class="Apple-tab-span" style="white-space:pre"> </span>If there is a mismatch, the tax payer gets intimated by SMS and e-mail.</div><div>•<span class="Apple-tab-span" style="white-space:pre"> </span>The taxpayers will simply need to visit the e-filing portal and log in with their user-ID and password to view mismatch related information</div><div>•<span class="Apple-tab-span" style="white-space:pre"> </span>The response can be submitted online. </div><div>•<span class="Apple-tab-span" style="white-space:pre"> </span>The responses submitted online by the taxpayers will be processed </div><div>•<span class="Apple-tab-span" style="white-space:pre"> </span>If the response and other information are found satisfactory as per automated closure rules, the issue will be treated as closed.</div><div> </div><div>Proper disclosures, filing of returns on time, filing the form correctly are some of the things one can do to avoid such notices. Small taxpayers stand to benefit by this move.</div><div> </div><div> </div>
