SAFEGUARDING AGAINST FAKE INCOME TAX NOTICES

SAFEGUARDING AGAINST FAKE INCOME TAX NOTICES

In today’s digital age, where communication channels have expanded exponentially, it is imperative for taxpayers to exercise caution and vigilance against fraudulent activities. One concerning issue that has recently emerged is the circulation of counterfeit income tax notices. This article aims to shed light on this growing problem and provide essential guidance to taxpayers on how they can protect themselves.

Understanding the Threat:

Fraudsters have become increasingly sophisticated in their attempts to deceive taxpayers. They create fake income tax notices that closely resemble genuine ones, often replicating official logos and using language that mimics authentic communication. These deceptive notices are commonly transmitted via email, text messages, or other digital platforms, necessitating the need for taxpayers to exercise caution and adopt preventive measures.

Verification Process

To combat the menace of counterfeit notices, taxpayers should prioritize the verification of any received communication. The following steps are crucial in ensuring the authenticity of income tax notices:

1. Unique Document Identification Number (DIN)

Genuine income tax notices are assigned a Unique 20 Digit Document Identification Number (DIN) by the tax authorities. Taxpayers should meticulously examine the notice for the presence of this distinctive identifier.

Additionally, legitimate notices often incorporate a barcode containing the DIN, further confirming their authenticity.

2. e-Filing Portal Verification

The official e-Filing portal provided by the tax authorities serves as a reliable platform for verifying the authenticity of income tax notices. Taxpayers can navigate to the “Authenticate Notice/Order issued by ITD” in the quick link section on the income tax e-filing portal. By inputting the relevant details, they can determine whether the notice is genuine or counterfeit.

3. The step by step process to authenticate the notice is as follows

https://www.incometax.gov.in/iec/foportal/help/how-to-authenticate-notice

4. The link to verify the notice or order issued by the income tax department without log-in is as follows

https://eportal.incometax.gov.in/iec/foservices/#/pre-login/authenticate-notice-issued-by-itd

5. This facility is for both registered and unregistered tax-payers.

Read More: Five income tax refund rules you should know

By adopting thorough verification procedures and remaining cautious, taxpayers can effectively protect themselves from falling victim to fraudulent income tax notices. Collaboration between tax authorities, taxpayers, and tax professionals plays a pivotal role in raising awareness and combating this issue. Ensuring the dissemination of accurate information and promoting preventive measures will contribute to a secure and trustworthy tax environment for all stakeholders.

 

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Five income tax refund rules you should know

Five income tax refund rules you should know

Due date for income tax return (ITR) filing is 31st July 2023. Who is entitled to get a refund, what are the taxation rules of ITR? And how to claim your refund? 

1)When you are entitled to get an income tax refund

A taxpayer is entitled to claim an income tax refund when the taxes paid on his behalf are more than his tax liability. The taxes paid by and on behalf of the taxpayer includes tax deducted at sources (TDS), tax collected at source (TCS) as well as taxes paid by the taxpayer himself like advance tax, and self-assessment tax.

In case you are entitled to a refund due to excess taxes paid over your actual liability, the refund does not come automatically but you have to file your ITR for claiming it. While filing your ITR for claiming a refund, please verify that the tax credit is visible in form no. 26AS. It is advisable not only to verify the details of all the tax credits available to you but also all the incomes which are shown Annual Information Statement (AIS). Since the income tax refunds are directly credited to your bank account. I would advise you to ensure that the bank account is validated while filing the ITR.

2)How to claim an income tax refund?

While submitting your ITR for claiming the income tax refund, you have to include all your income and claim various exemptions and deductions available to you. In case the taxes deducted/collected as well as paid by the taxpayer exceed the tax liability worked out while filing the ITR, you will get the refund after your ITR is processed. Please note that the refund does not come instantly but will be issued to you after the details of taxes already paid are verified by the income tax department from the information available with it.

3)How to claim your income tax refund if you have failed to file your income tax refund after the last date?

In case you have failed to file your ITR by 31st December which is the last date for filing your ITR, you can still claim your refund as per circular no. 9/2015 for six assessment years subject to complying with certain conditions. To claim a refund under this circular, you have to first file an application for condonation of delay and once the delay is condoned you can file the ITRs online for the last six years citing reference of the order granting condonation.

4)Taxability of income tax refund

There is some confusion about the taxability of the amount received after the claim of refund is processed. As far as the taxability of the amount received is concerned, the net amount of excess tax paid is not taxable at all. As per the provisions of the income tax act, the taxpayer is entitled to receive interest in respect of excess of advance tax and TDS/TCS over the net tax liability. The interest is payable from 1st April of the financial year following the year for which the ITR is filed. The taxpayer is entitled to get full interest if the ITR is filed by the due date for most of the cases i.e. 31 st July. In case there is a delay in filing a claim for refund attributable to the taxpayer, the taxpayer is not entitled to interest for such delay. So if you fail to file the ITR by the due date, you will not get the interest from 1st April till the month of filing of the ITR. The taxpayer is liable to pay tax on the interest on the income tax refund received. Please note that the last date to file your ITR is 31st December of the next year beyond which you cannot file your ITR.

4)Taxability of income tax refund

There is some confusion about the taxability of the amount received after the claim of refund is processed. As far as the taxability of the amount received is concerned, the net amount of excess tax paid is not taxable at all. As per the provisions of the income tax act, the taxpayer is entitled to receive interest in respect of excess of advance tax and TDS/TCS over the net tax liability. The interest is payable from 1st April of the financial year following the year for which the ITR is filed. The taxpayer is entitled to get full interest if the ITR is filed by the due date for most of the cases i.e. 31 st July. In case there is a delay in filing a claim for refund attributable to the taxpayer, the taxpayer is not entitled to interest for such delay. So if you fail to file the ITR by the due date, you will not get the interest from 1st April till the month of filing of the ITR. The taxpayer is liable to pay tax on the interest on the income tax refund received. Please note that the last date to file your ITR is 31st December of the next year beyond which you cannot file your ITR.

5)When your refund due can be withheld and how to claim

The income tax laws have provisions authorising the income tax department to adjust the amount of refund due against any outstanding demand of earlier years. The law also provides that the income tax department has to give an intimation before such an adjustment is made. This provision is not complied with in all cases. If your refund has been wrongfully has been adjusted, you can claim the same by raising a grievance on the income tax website after logging into your account.

Read More: ALL ABOUT UDYAM REGISTRATION PROCESS

Though the income tax department has powers to adjust the refund due against any outstanding demand of earlier years the same privilege is not extended to the taxpayer to adjust any income tax refund due for any earlier years against tax payable for subsequent years.

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ALL ABOUT UDYAM REGISTRATION PROCESS

ALL ABOUT UDYAM REGISTRATION PROCESS

We’ll talk about how Udyog Aadhar registration has been renamed Udyam registration by MSME. The MSME programmes of the Indian government or the governments of your respective states would be available to you once the Udyam has been registered.

1. Visit the Udyam Registration website at udyamregistration.gov.in.

2. Make your selection under “For New Entrepreneurs who are Not Currently Registered as MSME.”

3. To begin the procedure, you should see a form. The process is divided into 8 sections with a total of 25 fields or sub-sections.

Pre-requisite:

Documents required by the government before applying for a New Registration

1. You must have your AADHAR CARD and PAN CARD on hand.

2. Proprietor (Proprietorship Firm), Managing Partner (Partnership Firm), or Karta (Hindu Undivided Family Business) cards should be used.

3. In the event of a Company, Private Limited, Limited Liability Partnership, Co-operative Society, or Trust, the Authorized Signatory’s Aadhar Number and the Organization’s PAN Number must be supplied.

4. Udyam registration requires a GST number. However, for the time being, this is not required because GST numbers are intrinsically connected to PAN numbers and will be obtained from your PAN.

5. Income Tax (ITR) data are required for Udyam Registration. However, because they are tied to a PAN number, the PAN information is adequate.

Section 1: OTP Verification for Aadhar (Fields 1 & 2)

Verifying the applicant’s Aadhar Number and Name against their Aadhar card is the initial step. The applicant must be the organization’s principal and authorized signatory.

 

An OTP will be issued to the mobile number associated with the Aadhar Card once the details have been entered and the VALIDATE & GENERATE OTP button has been clicked.

 

Section 2: VERIFICATION of Pan (Fields 2, 3 & 4)

The next step is to confirm your PAN CARD after providing your Aadhar Number. After the PAN card has been verified, submit information on whether you have filed your most recent ITR and whether your organization has registered for a GSTIN.

 

Section 3: Applicant Details (Fields 5 – 10)

This part compiles the applicant’s Basic Information. Information about the organization, applicant information, and contact information are included.

 

Section 4: Organization Location (Fields 11, 12 & 13)

The location and address where the organization’s and its execution centers conduct business.

 

Section 5: Other Organization Details (Fields 14-19)

This section gathers all further information about the organization, including its founding dates, previous registration information, status, the number of employees, the type of business, and the NIC codes for all of its goods and services.

 

Section 6: Investment Criteria of the Organization

The investments made for the organization’s capital assets are described in this section. If the PAN is linked, this information is taken from the ITRs 3, 5, and 6, otherwise it must be self-declared.

 

Section 7: Other Details (Fields 22, 23 & 24)

These are additional information to contact with public and governmental authorities. The majority of them are Yes/No questions, and depending on the owner’s desire, they are recorded.

 

Section 8: Acceptance and Generation of E-Certificate

Final approval of the submitted paperwork is required in order to obtain the final OTP needed to produce the ecertificate.

 

Read More: LINK YOUR PAN TO AADHAAR OR FACE CONSEQUENCES – HERE’S WHAT YOU NEED TO KNOW

Eligibility:

The Udyam registration certificate can be obtained by any business entity that satisfies the minimum turnover and investment (in equipment and machinery) requirements for MSMEs in India. The following table lists the requirements for a company to be considered an MSME in India:

The Udyam registration programme is a helpful one for India’s small and medium-sized businesses. Businesses who sign up for Udyam can take advantage of a number of advantages, including as access to government programmes and incentives, bank loans and credit facilities, protection against payment delays, quicker dispute resolution, and improved marketability and visibility.

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