Income Tax News: It is generally accepted as a sensible financial practice to file your Income Tax Return (ITR) well in advance of the deadline. It’s crucial to realise, though, that even if you immediately filed your ITR, the tax authorities may still send you a notification. This can be perplexing, particularly if you’ve paid your taxes on time.
Why You Might Receive a Notice
TAN Return Filing
Every year by May 31st, businesses including banks and companies who deduct taxes at the source must file their Tax Deduction and Collection Account Number (TAN) forms.
Appearance in Form 26AS
The taxpayer’s Form 26AS, which functions as a combined statement of tax credits, begins to show the amounts of tax that have been withheld after filing their TAN forms. But since this procedure takes time, even if you submitted your ITR early, the data might not show up in your Form 26AS right away.
Delay in AIS Data
It might also take some time for your Form 26AS to incorporate information from Annual Information Statements (AIS), which contain specifics about high-value transactions disclosed by financial institutions. As a result, even if you submitted your ITR at the beginning of April, your Form 26AS might not display the pertinent facts until June.
What to Do If You Receive a Notice
Review the Notice: Go over the notice carefully to see why it is being issued.
Check Form 26AS: Keep a close eye on your Form 26AS to make sure the necessary tax information shows up following the filing of TAN returns and AIS information.
Respond Promptly: If the notice calls for a response, give the tax authorities the information they need right away.
Seek Professional Assistance: If you’re not sure how to react to the notice, you might want to consult a tax advisor or specialist.