Salaried People Alert! IT Department Now Sending Notices to These ITR Filers – Check If You Are on the List

IT Notices : The Income Tax Department has intensified its scrutiny of salaried individuals by sending notices to those whose Income Tax Returns (ITRs) show discrepancies or mismatches. With a rise in non-compliance cases and errors during ITR filing, it has become crucial for salaried taxpayers to understand the reasons for receiving these notices. If you are a salaried professional who recently filed an ITR, it is important to stay informed and take corrective actions immediately to avoid penalties or further scrutiny.

Who Are Receiving IT Notices?

The IT Department is targeting specific categories of ITR filers whose returns indicate red flags. The focus is on ensuring transparency, accuracy, and prompt correction of anomalies.

Key Categories Being Targeted:

• Individuals with significant salary discrepancies
• Employees claiming excessive deductions without proper proof
• Filers showing mismatch between Form 16 and ITR
• High-value transactions not declared
• Salary earners with large cash deposits post-demonetization
• Professionals failing to disclose additional sources of income
• Filers not responding to earlier notices or compliance communications

Common Reasons for Receiving an IT Notice

Several factors can trigger an IT notice even for salaried individuals who believe their filings are accurate. Here are the most common reasons:

• Mismatch between Form 16 and Form 26AS
• Undeclared income from interest, rental properties, or capital gains
• Excessive claims of HRA, LTA, or Section 80C deductions without receipts
• Non-disclosure of high-value transactions
• Filing wrong ITR form for salary and other income
• Errors in TDS claims and income reporting
• Non-filing of returns despite mandatory eligibility
• Ignoring notices sent under Section 143(1) or 139(9)

Table 1: Major Triggers for Income Tax Notices to Salaried People

S.No	Trigger	Details
1	Form 16 and Form 26AS Mismatch	Income details do not match between employer’s TDS certificate and tax portal records
2	High-Value Transactions	Large credit card bills, property purchases, or cash deposits
3	Excessive Deductions	Claiming more deductions under Sections 80C, 80D without proof
4	Undisclosed Income	Not declaring income from stocks, interest, or side businesses
5	Non-filing of ITR	Failure to file returns despite income above exemption limit
6	Filing Wrong ITR Form	Selecting incorrect ITR form type
7	Ignoring Previous Notices	Non-response to earlier IT department notices
8	Suspicious Refund Claims	Claiming unusually high refunds compared to reported income

Types of Notices Salaried Individuals May Receive

Depending on the issue identified, the IT Department issues different types of notices. It is important to understand the nature of the notice to respond appropriately.

Types of Notices:

• Notice under Section 139(9): Defective return
• Notice under Section 143(1): Intimation regarding adjustment
• Notice under Section 142(1): Seeking additional information
• Notice under Section 148: Income escaped assessment
• Notice under Section 245: Adjustment of refund against outstanding demand

Table 2: Types of IT Notices and What They Mean

S.No	Notice Section	Purpose
1	Section 139(9)	Defective return requiring correction
2	Section 143(1)	Minor adjustment or mismatch notice
3	Section 142(1)	Demand for additional documents/details
4	Section 148	Reassessment if income has escaped taxation
5	Section 245	Set-off refund against pending dues

How to Respond If You Receive a Notice

If you have received an IT notice, do not panic. Here’s how you should approach it:

• Read the notice carefully to understand the issue raised
• Check your filed ITR and match it with Form 16, Form 26AS, and AIS (Annual Information Statement)
• Rectify errors, if any, within the specified deadline
• Submit a written response through the e-filing portal
• Consult a tax expert or Chartered Accountant (CA) if the case is complicated
• Maintain all necessary documents and proofs for future reference

Table 3: Steps to Take After Receiving an IT Notice

S.No	Step	Action
1	Understand the Notice	Identify the section under which the notice is issued
2	Cross-verify Data	Match your ITR with Form 16, 26AS, AIS
3	Correct Mistakes	File a revised return if needed
4	Submit Response	Reply via the Income Tax e-filing portal
5	Consult Experts	Take professional help if unsure
6	Keep Proofs Ready	Maintain relevant receipts, forms, bank statements
7	Follow Deadlines	Respond within the specified time frame

Precautions for Future ITR Filing

To avoid notices in the future, salaried individuals must ensure accurate and complete filing practices:

• Always verify Form 16, Form 26AS, and AIS before filing
• Declare all income sources, including interest and freelance income
• Ensure HRA, LTA, and Section 80 deductions have genuine supporting documents
• Use the correct ITR form as per income sources
• File returns before the deadline to avoid late fees and scrutiny
• Avoid exaggerating refund claims
• Keep communication lines open with the IT Department in case of discrepancies

Receiving an IT notice can be stressful, but with a proactive and informed approach, salaried individuals can handle the situation smoothly. Most notices are rectifiable if the response is prompt and accurate. It is important to maintain transparency in financial declarations and avoid shortcuts while filing your ITR. Always double-check your income details, deductions, and tax credits to stay compliant and avoid unnecessary trouble with the Income Tax Department. If you are unsure about any aspect of your return, it is best to seek professional assistance to ensure smooth tax compliance.

The information provided in this article is for general guidance. Taxpayers are advised to consult their Chartered Accountant or tax consultant for case-specific advice.