Notice from Income Tax Department is common, but there is nothing to worry about. Just produce the required documents and appear before the authority when there is a call. There is nothing to be afraid of if you get a Notice from Income Tax Department.
Notice from Income Tax Department have started pouring in especially for cash deposited during demonetization- How to attend to such notices?
It has been almost six months that demonetization took place in India. Modi government took a stern step on the eve of 8th November to curb the fallout of black money, money laundering and tax evasion in this country.
Though initially the motive of this step was explained by the government the method of implication was not known. In present days many people are getting a notice from Income Tax department. Is it the effect of demonetization! If a person gets any Income Tax notice, then what should he do? There are many questions which are still unanswered but below are the few details that may help a person to a great extent.
Who Can Get Notice from Income Tax Department for Cash deposited during demonetization Period!
According to the official statement of government, banks are directed to take a deposit of cash amounting less than fifty thousand. If the amount goes up, the person, who is depositing, needs to provide PAN details to the competent authority. If he or she fails to do this, then money won’t be deposited in the account.
This condition applies only to the savings bank account. In the case of the current account, the limit is one lakh per day. If these levels violate, then IT department may send notice to the person.
Moreover, it had been stated that if individual deposits more than 2.5 lakhs in his savings or fixed deposit account, then he may get notice. In addition to this, the limit changes for the current account. According to the latest note, banks are allowed to take deposits of 12.5 lakhs in the present account of an individual. If this limit gets violated, then the person may face notice from IT department.
What to Do If You Get Such Notice from Income Tax Department!
There is nothing to afraid of if you have got any notice from the income tax department after the demonetization is over. This doesn’t necessarily mean you are fraud or attached with any illegal activities.
IT department will send you to notice and will ask you to show them the source of your investment and income too. They will provide you more than enough time to acquire essential documents. Once you have collected all the documents required to prove the source of your income you can appear in front of the competent authority.
HOWEVER a Word of Caution here- Before attending Income Tax Department, make a cash flow for your income to justify cash deposited in Bank– Click link to understand this point
Now in case if you are unable to find necessary documents, then the things may go against you. The photocopy of the savings account and PAN card can do the deal for you in that case. So if a person is attached to illegal works, then the task will become troublesome for him. A genuine person can always need to respond appropriately and timely.
What Can Happen If A Person Doesn’t Respond to such notice from Income Tax Department?
If a person, who has got a notice from IT after demonetization doesn’t respond in time, he may face serious charges against him. IT department will assume that the person is unable to find required documents and trying to bypass them.
If a person is honest and doesn’t have any illegal activity, then he will get better off because of this demonetization, and it won’t come at daggers drawn of that man too.