Missed Filing ITR? You May Get a Tax Notice Soon

The Income Tax Department has identified individuals who failed to file their Income Tax Returns (ITR) for the assessment years 2019-20, 2020-21, and 2021-22 despite having taxable income. These high-risk non-filers may soon receive tax notices under Section 148A. The department identified these cases using data from the Annual Information Statement (AIS), TDS/TCS reports, and other financial transactions.

Once a notice is issued, the individual has the chance to respond and clarify the situation. Failure to respond or incorrect filings could lead to penalties or further scrutiny. The department is focusing on individuals with significant financial activity but no ITR filings, aiming to improve tax compliance and reduce tax evasion.

Taxpayers who receive a notice are advised to respond promptly and provide accurate financial details. Filing pending returns or correcting discrepancies may help avoid legal action or additional penalties. This move reflects the government’s ongoing effort to tighten tax compliance and ensure that all eligible taxpayers are contributing fairly.

Taxpayers should regularly review their AIS and financial records to avoid surprises and ensure compliance with tax laws. Seeking advice from a tax consultant may help in handling any notices or filing issues efficiently.