When the Taxman Comes Calling
Have you been served a notice by the income tax department of late? If yes, don’t be surprised, for if tax consultants are to be believed, there has been a spike in the number of notices being served on income tax assessees. The reason is improved monitoring due to stricter know-your-customer norms and online filing of returns, both of which have made data processing easier and faster.
Rs 30 lakh is the threshold of net assets over which wealth tax is levied
1% is the wealth tax on the net value of assets exceeding Rs 30 lakh
WHY YOU GET I-T NOTICE
Return not filed or delayed: Your employer deducted tax from you salary. However, you did not file the return.
Non-disclosure of assets for wealth tax: Not many people know that if they own unproductive assets such as urban land, vacant house, personal car, gold, expensive watches, paintings, etc, they are liable to pay wealth tax if the net aggregate value of these things exceeds Rs 30 lakh. The tax rate is 1% on the amount over and above this Rs 30 lakh threshold.
Notices for high-value transactions: Any high-value transaction (with or without quoting PAN) that you thought you can get away with can invite a notice from the income tax department.
Do not panic, simply oblige the taxman. Respond to the notice, and furnish the documents and information the department has sought. File a rectified return and pay the tax due, if any, within the stipulated period.