While submitting your income tax return before July 31 offers some relief, the Income Tax Department retains the right to review and issue notices later, especially if discrepancies are found in declared income or tax credits.
Filing an income tax return before the July 31 deadline can bring some relief, but it does not close the book on scrutiny from the tax office. According to India Today, the Income Tax Department can still review a return later and may issue a notice if the figures do not match the information it already holds from employers, banks, mutual funds, brokers and other institutions.
One of the most common triggers is a mismatch between the income declared in the return and the department’s records. That can happen with salary income, interest or dividend payments, or other receipts that appear in the Annual Information Statement or on tax forms submitted by employers and other payers. LiveMint and tax advisory sites say even a small reporting error can prompt a query, particularly if the return was prepared without comparing it carefully with Form 16, AIS and related documents.
Differences in tax credits can also cause problems. If a taxpayer claims credit for tax deducted at source or tax collected at source but the same amount does not appear in Form 26AS or the AIS, the department may seek an explanation. This can occur when the deducting party has not filed its return correctly, has made an error or has not yet updated the information.
Capital gains are another frequent flashpoint. India Today said sales of shares, mutual funds or property may already be visible to the tax authorities through brokers, registrars and other reporting entities. If a taxpayer omits a gain, uses the wrong purchase or sale value, or miscalculates the tax due, that can lead to a notice. Other tax guides add that incorrect deductions, missing income and the use of the wrong return form can also draw attention, even after a return has been filed on time.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
