Income Tax News: The income tax department may send tax notices and errors due to the complexity of filing income tax returns. Receiving a notice, however, does not always imply problems; it could just mean that the tax return needs to be corrected. Even after receiving a tax notice, taxpayers may amend their income tax return in accordance with Section 139(5) of the Income Tax Act to address inadvertent errors or omissions.
Filing Amended Returns Before Assessment Year Closure
Either before the assessment year ends or one year has passed since the conclusion of the relevant assessment year, the amended return may be filed, whichever comes first. The tax office may issue different notices under different parts of the Income Tax Act, therefore it’s important to pay attention to the severity of the error or omission. Income tax returns can be amended both online and offline, and taxpayers are encouraged to consult tax professionals for advice if necessary.
Unveiling the Two-Year Window for “Updated Returns
In addition, under specific circumstances, a “updated return” created by the Finance Act 2022 may be filed within two years of the conclusion of the applicable assessment year. Finally, rather than being a reason for fear or panic, receiving a tax notice should be viewed as a chance to correct errors committed in the initial income tax return.
Navigating Tax Complexity
Income tax returns can occasionally be complicated and prone to mistakes, which might result in an unpleasant tax notice from the income tax department. But it’s important to keep in mind that it doesn’t always mean trouble—in some cases, it can just be a reminder that you need to fix a mistake on your tax return. Is it possible for taxpayers to amend their income tax return upon receipt of a tax notice? is a commonly asked question. Yes, is the response.
Leveraging Section 139(5) for IT Return Amendments
The Income Tax (IT) Act allows taxpayers to amend their IT returns under Section 139(5). If there are any inadvertent mistakes or omissions in their IT returns, taxpayers can use this provision to fix them—even after receiving a tax notice. It is possible to make revisions to it before the relevant assessment year ends or before the assessment year is over, whichever comes first.
The Crucial Role of Reading Tax Notifications
You, as the taxpayer, have a duty to carefully read the tax notification. Different notices under different parts of the Income Tax Act may be issued by the tax office, depending on how serious the error or omission was in your first return. For example, a notification under Section 143(1) may be issued for insignificant differences. On the other hand, a notice under Section 143(2) may suggest that your tax return has to be thoroughly examined and that a scrutiny assessment is necessary.
Leveraging ITR Revision to Rectify Tax Notice Discrepancies
A revision of your ITR may be an excellent way to fix a mistake if you receive a tax notice because of an incorrect tax deduction or discrepancy in income. Income tax returns can be amended both online and offline, but make sure to save the updated return receipt for your records. In order to get clarification on any part of amending your tax return, you must consult a tax specialist.
Disclaimer: This information is intended for general knowledge only. Any financial decisions should be made in consultation with a qualified professional. DNP News Network Private Limited is not liable for any financial losses incurred based on the information provided here.