scorecardresearchReceived notice from IT Department? Here's how to check its authenticity

Received notice from IT Department? Here's how to check its authenticity

Updated: 14 Jul 2023, 10:09 AM IST

Income Tax Department issues notice to erring taxpayers. Taxpayers can check the authenticity of the notice received before responding to the details sought by the department.

Taxpayers must verify the notice issued by the IT Department.

Taxpayers must verify the notice issued by the IT Department.

In response to various errors identified in tax returns for the fiscal year 2022-23, the Income Tax Department has sent out notices to several individuals. Engaging in fraudulent activities such as falsely claiming tax refunds by misrepresenting income or fabricating losses to reduce taxable income can result in significant penalties. Following the demonetisation period, Section 270 of the Income Tax Act was amended to impose stringent penalties for misreporting and under-reporting income.

IT and government employees in Income Tax Department net for "misreporting"

The Income Tax Department on July 07 announced how many government and tech company employees in Andhra Pradesh and Telangana have filed erroneous tax deductions and exemptions. However, the department allowed erring taxpayers a chance to file correct returns by the due date. The incident came to light after the tax officials carried out field inquiries and realised how vulnerable employees were encouraged to claim wrongful refunds by their peers and the companies’ intermediaries.

To this effect, Mitali Madhusmita, Principal Chief Commissioner of Income Tax, AP and Telangana, said, “Many of the assesees work in government departments, PSUs and prestigious IT companies. It is also noticed that a large number of such taxpayers work with companies based outside Andhra Pradesh and Telangana but have PAN based in Andhra Pradesh/Telangana.”

“The Income Tax department’s surveys on consultants and intermediaries revealed incriminating evidence on these fraudulent practices. Many of them have admitted to claiming bogus deductions and getting substantial refunds for their clients (employees and others) for commission,” added the department in its statement.

A considerable portion of these claims has resulted in tax refunds ranging from 75-90 per cent of the Tax Deducted at Source (TDS) by the employer. Under the provisions of the Income Tax Act, 1961, misreporting income and making false deductions will result in severe consequences, including a penalty of 200 per cent, potential prosecution leading to imprisonment, and other penalties.

People in other states too have received notices for misreporting details in their income tax returns (ITRs). However, before responding to any communication purportedly received from the I-T Department, it is crucial to verify the authenticity of the notice or order to ensure that it has indeed been issued by the authorised income tax authorities.

How to verify the validity of the notice received?

To verify the authenticity of a notice, order, or letter issued by the income tax authority, you can authenticate it through the e-filing portal. Let’s check the necessary steps to verify the same.

Step 1: Visit the income tax e-filing portal. On the department’s homepage, go to the section labeled “Quick Links” and select “Authenticate notice/order issued by ITD”.

Step 2: To verify the notice, order, or letter, you can provide the following details on the e-filing portal: PAN, document type, assessment year, issue date, and mobile number. Alternatively, you can use the Document Identification Number (DIN) and mobile number for verification purposes.

Step 3: If you choose to authenticate using PAN, document type, assessment year, issue date, and mobile number, select the corresponding option and enter all the required details.

Another option available for authentication is to use the DIN along with the mobile number. Please enter the DIN and mobile number, and proceed. You will receive an OTP, which needs to be validated.

If the notice or order has been issued by the income tax authority, a success message will be displayed confirming its authenticity, or else the system will display a message stating “No record found for the given DIN”.

Step 4: Upon entering all the necessary details, you will receive a One-Time Password (OTP). Please input the received OTP to proceed. Once the OTP is successfully validated, the DIN of the issued notice and the corresponding date of issuance will be displayed.

Step 5: If the notice is not issued by the Income Tax Department, a message stating “No record found for the given criteria” will be displayed.

Filing ITR forms with correct details is imperative to avoid penalties and any legal action in the long run. If you are not well-versed in guidelines and rules related to taxation, it is advisable to consult a qualified expert rather than attempting to file your ITR independently or relying on unprofessional individuals offering low-cost services.


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First Published: 14 Jul 2023, 10:09 AM IST