I am a bit worried as I recently got a tax scrutiny notice. What should I do?

Amit Arora, Delhi

You should not be worried with a scrutiny notice if you have done nothing wrong. Most importantly, do not panic if you receive a scrutiny notice. The objective of a notice is just to look at your IT returns in detail, and if you have nothing to hide, there is no reason to worry.

Check the details of the notice including your name, PAN number, and the financial year for which the notice has been issued. Also, check the name of the officer who has issued you the notice to rule out any fraud by mischief mongers. Take the help of a chartered accountant to understand the section under which the notice has been sent. This would help you understand the details of the notice and the section under which the notice has been sent to you. It would also help you prepare your reply accordingly so that you are able to answer all queries requested by the IT department. Once you get the notice, do not ignore it as doing so could complicate things for you. Not replying to a notice will allow the department to consider you at fault and take ex parte decision, including a fine against you for filing wrong or incomplete information. Likewise, never hide any information that is sought by the IT department. By intentionally hiding information, you would be committing a criminal act, leaving you vulnerable for a fine as well as legal proceedings. Therefore, be clear and share whatever information is being sought by the IT department. In case you need more time to recollect any details, you should seek time from the officer in charge for the same.

Also, note the document identification number, which is mentioned in the scrutiny notice, even if it is sent to you online. So, if you receive a notice through email, note down the document identification number of your case. This number will be your reference number in all future correspondence with the IT department. Most importantly, do not delay your response for the scrutiny notice and make sure you file in your reply before the stipulated deadline. Lastly, receiving an income tax notice for scrutiny is not uncommon, and if you reply with the requested details on time, there are no reasons to worry.

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