If you receive a notice from the Income Tax Department, respond immediately.
The Central Board of Direct Taxes (CBDT) has issued guidelines for selecting ITRs for full scrutiny. This is applicable only for the current financial year i.e. 2023-24. It has been said in the guidelines that where the Income Tax Department had conducted surveys in cases of tax evasion and confiscation, where notices were sent regarding tax evasion, a thorough scrutiny of income tax returns is necessary. A senior official says that the Income Tax Department questions only those tax payers whose income details they have doubts about. The department feels that the taxpayer has given wrong income information. Has hidden his income, which comes under the purview of black money. This is straight tax evasion.
why is it important to answer
In such a situation, when the Income Tax Department asks him any question, he should answer within the stipulated time. If the department is satisfied with its reply, the matter is closed. If the answers are not satisfactory, then further action will be taken as per the prescribed rules. In such a situation, it is necessary that the questions of the Income Tax Department should be answered. This opens a way to settle the matter. If someone has made a mistake in giving the correct information of income, then that matter can be resolved by paying the penalty. If the taxpayer is negligent in answering the questions, then the consequences can be fatal.