A Complete Guide to Income Tax Department of India Unpaid TDS Notices

It may be frightening and confusing to get an overdue TDS notice from the income tax department, particularly if you don't know why it's happening. This post will examine TDS in depth, look at the causes of unpaid TDS notices, and offer a detailed guide on how to reply to them.

What is TDS?

The Indian government implemented the Tax Deducted at Source (TDS) system to collect taxes directly from the source of revenue. It's a system in which the payer (deductor) deposits money with the government on behalf of the receiver (deductee) after deducting a certain proportion of the amount paid in taxes.

Why Did My TDS Notice Go Unpaid?

The income tax authority may send you an unpaid TDS notice for a number of reasons. Among the frequent causes are:

• Variations in the reported TDS quantity
• Something is amiss with your tax return
• Not submitting all of the necessary documents
• Not submitting your tax returns
• Assets held in your spouse's name that you neglected to include on your income tax returns
• High-value transactions during the fiscal year that were improperly stated on the income tax return
• The assessing officer will examine your income tax return at random
• Not disclosing any income
• The income tax return was filed using the incorrect form

How Can I Verify the Authenticity of an Income Tax Department Notice or Order?

It's important to confirm the notice's legitimacy before answering. To do this, take the following actions:

1. Click on 'Authenticate notice/order issued by ITD' under 'Quick Links' on the income tax e-filing site.
2. Input your cellphone number, assessment year, issue date, PAN, and document type.
3. An OTP will be sent to you if the alert is authentic. To verify it, enter the OTP.
4. A message stating "No record found for the given criteria" will appear if the notification is not issued by the ITD.

Types of Notifications/Notices the Income Tax Department Issues

The income tax division sends out a range of notifications and intimations, such as:

• Notification Under Section 133(6): When there is a significant discrepancy between the information provided in Form AIS and the ITR that was filed, this notice is sent.
• Notice Under Section 143(2): Following the selection of the submitted return for examination, this notice is given.
• Notification Under Section 148: The assessing officer issues this notification if there is probable cause to think that income has eluded taxation.
• Notification Pursuant to Section 143(1): This notification is sent following the processing of the return and the determination of any tax demand or reimbursement.

How Should I Answer a TDS Notice for Unpaid?

Paying close attention to details is necessary when responding to an underpaid TDS notice. Here's a comprehensive guide to assist you with responding:

1. Examine the circumstances surrounding the notice's receipt and determine whether the taxpayer or the government actually made a false statement.
2. Proceed to the "Compliance Portal" or "E-Verification" part of the income tax portal to reply to the notification.
3. Provide a thorough response to the given questionnaire, together with any required attachments.
4. If the taxpayer made a false statement and there is additional liability to be paid, they may voluntarily file the Updated return under Section 139(8A) and pay the appropriate penalty.

In Summary

It might be frightening to get an unpaid TDS notice from the income tax department, but you can respond to it appropriately and stay out of trouble by knowing the reasons behind it and doing the things listed above. To prevent any issues, always remember to validate the notification and reply within the allotted time.

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