Bank Deposit Interest Tax: How to Avoid Penalties in ITR2?

Ans: Dear Mr. Tadikamalla,

I understand your concern about receiving a notice under Section 143(1) even after paying your due taxes. This notice is a standard procedure from the Income Tax Department after your ITR has been processed. It's not necessarily a cause for concern.

The notice under Section 143(1) is an intimation which is sent to inform you about any discrepancies between the income details declared by you and the data available with the Income Tax Department. It could also be due to a miscalculation of tax or an incorrect claim of deductions.

If you have already paid your tax dues and are still receiving this notice, it could be due to a few reasons:

1. The payment you made has not been credited or updated in the system yet.
2. There might be a discrepancy or error in the tax calculation.
3. The Income Tax Department might not have accounted for some deductions or exemptions you claimed.

Here's what you can do:

1. Check the tax credit statement (Form 26AS) to confirm if your tax payment is reflecting there.
2. Cross-verify the computation of income and tax in the intimation received with your own calculations.
3. If there is a mismatch or error, you can file a rectification request online under the 'e-file' option on the Income Tax Department's website.

If everything is in order and you still receive the notice, I would recommend consulting with a tax advisor or chartered accountant who can help you understand the notice in detail and guide you on the next steps.

I hope this helps.

Best Regards

Ans: You can but it may be advisable if you wait till June in order to avoid any mismatch in AIS (which will open yourself to scrutiny).

Please take your CAs advice before moving ahead.

Ans: No, Every non-senior citizen taxpayer is required to disclose all the income (including income on which TDS is deducted) in its income tax return.