Business

July 25, 2023 : The Income Tax Department (ITD) has sent over 1 lakh notices to taxpayers for under-reported income and non-filing of returns. The notices were sent to taxpayers who have not filed their income tax returns for the financial year 2021-22, or who have under-reported their income.

The ITD has been taking a number of measures to crack down on tax evasion. In addition to sending notices, the ITD has also been conducting searches and surveys. The ITD has also been using data analytics to identify potential cases of tax evasion.

The ITD's efforts to crack down on tax evasion have been successful in generating significant revenue for the government. In the financial year 2021-22, the ITD collected ₹14.19 lakh crore in direct taxes, which was an increase of 44.4% over the previous year.

The ITD's notices to taxpayers for under-reported income and non-filing of returns are a warning to taxpayers that the ITD is serious about collecting taxes. Taxpayers who have not filed their income tax returns for the financial year 2021-22, or who have under-reported their income, should take action to rectify the situation.

Here are some tips for taxpayers who have received a notice from the ITD:

• Do not ignore the notice. The ITD will take action if you do not respond to the notice.
• Read the notice carefully. The notice will explain the reason for the notice and the action that the ITD is taking.
• If you disagree with the notice, you can file an appeal. You can file an appeal with the ITD or with the appellate authorities.
• If you are unable to pay the tax due, you can request a payment plan. The ITD may allow you to pay the tax due in installments.

It is important to note that the ITD can take a number of actions against taxpayers who do not comply with the notice. These actions can include:

• Imposing a penalty. The ITD can impose a penalty of up to 200% of the amount of tax due.
• Launching a search and seizure operation. The ITD can launch a search and seizure operation to collect evidence of tax evasion.
• Initiating prosecution. The ITD can initiate prosecution against taxpayers who are found to have evaded taxes.

Taxpayers who have received a notice from the ITD should take action to rectify the situation. If you have any questions about the notice, you should consult with a tax advisor.