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September 28, 2022
Business News

Received Notice For Income Tax Refund Claims? Here’s What You Should Do

The deadline to file Income Tax Return (ITR) for individual taxpayers for the Assessment Year AY 2022-2023 was July 31. The Income Tax Department is processing the Income Tax Returns and many taxpayers may end up getting notices for multiple reasons including calculation errors, not reporting income correctly or evening claiming excessive losses.

The I-T department is verifying the refunds claimed by the taxpayers towards the TDS deductions. The department is using an Artificial Intelligence (AI) enabled software to scrutiny such claims and send out notices for discrepancies.

An assessee may end up getting such a notice for claiming multiple refunds under different sections of the Income Tax Act. The taxpayer may get a mail from the I-T department asking to verify and revise the ITR if the proof of investment is missing or a wrong exemption is claimed. The notice is being sent out to the individual taxpayers with an aim to reduce the amount of refund or to revise it, the Business League website reported.

The taxpayers and small traders who have claimed exemptions under Section 80G of the Income Tax Act are getting such notices. Section 80G of the I-T Act allows exemptions for various contributions made as donations to special relief funds and charitable institutions.

The I-T Department is sending notices to salaried class for higher refunds claimed or mismatch in amounts as mentioned in their Form 16. The businessmen are getting notices for showing excess losses or wrong claims. Notices are also being sent out to taxpayers for claiming exemptions under various heads like investments under Section 80C, interest on home loans and rent paid.

 

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