Income Tax Notice: You know that you have to pay some part of your income as income tax. Due to this, some people adopt some tricks to save their tax, we are going to tell about them that if you have also made this mistake while trying to save tax, then soon a notice is going to come to your house too. .
Income Tax Notice: To save income tax, the Income Tax Department has started sending notices to those who make irregularities in expenditure on house rent allowance, health insurance, home loan, tax saving investment under 80-C. For this the department has adopted its old weapon Section 133-C.
In the beginning of this month itself, notices have been sent to big companies of Mumbai, Delhi and other cities. Experts say that the companies that have received the notice should respond immediately. There is a provision for penalty for not doing so. This should not be taken lightly.
What is Section 133C?
Section 133C empowers tax officials to ask for information to verify details. People familiar with the process told ET that companies are being asked to either ‘confirm the information’ or ‘submit a correction statement’.
The Income Tax Department aims to track cases where either the company has deducted less TDS than expected or employees are claiming refunds through additional investment declarations which were not disclosed earlier but later during the year. ITR was included while finalizing it.
Section 133C has been used very little so far –
“Section 133C, introduced in 2014-15, has been little used so far, but recently many companies have received notices under this section,” said Rahul Garg, managing partner, Aesir Consulting. According to Garg, it is important that only genuine cases are taken up for investigation at the company or employee level.
He said, “This can help in a more vigilant approach towards tax compliance through proper verification at the employer level i.e. TDS deductors, correct claims by taxpayers, increased tax collection and fair choice of old and new tax regimes.
Responsibility of companies: Calculate TDS correctly: Garg said, “The law puts the responsibility on the employer to correctly calculate the TDS of the persons employed by him and report it every quarter, but traditionally companies The focus has not been on closely verifying the declarations by the employees. In some cases the employees do not submit the genuine documents on time. Moreover, there are many software companies to which the companies usually outsource the payroll job.”
What will happen if employees make fake claims –
Rajesh P Shah, partner at CA firm Jayantilal Thakkar & Co, said the difference would not be easily visible in the tax office system if employees make fake claims and the companies supporting them, but any difference between the two sets of information would be noticed immediately. Will go. However, if a case is taken up by the tax office then there is a strong possibility that it will check the records of all the employees.
New form for correction in application –
Now you will be able to easily correct errors in TDS credit. The Central Board of Direct Taxes (CBDT) had issued the new electronic application Form 71 in August. If TDS is deducted in the wrong year, you can claim refund by changing the year through this form. For this, the Income Tax Act, 1962 has been amended. Through this form you will be able to update the information of the last two years only.
Download the new form from here: You can download Form 71 by visiting the e-filing portal of the Income Tax Department https://www.incometax.gov.in/. In the form you will have to enter complete information related to income tax declaration.
