Things to check after filing returns

Since you have filed your returns by now, it is now time to keep a close watch on your emails as the Income Tax Department may be communicating to you at any time about processing of your returns filed. Here is the list of things to check after filing return-

Emails

As stated earlier, one needs to keep a close watch on the emails as you are about to receive an email from the Income Tax Department about your return. Your return may be accepted and processed as you have filed if the Department doesn’t find any discrepancies with the information furnished. But, if the Department is not satisfied with the information furnished in the return, it may seek further clarifications before processing the return and may also ask you to pay additional tax, interest and penalty if there is any shortfall, through emails.

Reconfirmation of Investments and Deductions

The department uses artificial intelligence while processing your returns. While doing so, if it comes to the notice of the department that you have claimed additional deductions or rebates on investments made when compared to your earlier year or what is provided in Form 16 by your employer, then you are more like to receive a notice from the department asking you to reconfirm the investments and deductions claimed. In addition to this you may also be asked to provide the supporting documents for the investments and deductions claimed.

If you fail to provide the necessary clarifications and documents you may also be subject to penalty for evading tax.

Failure of Refund

While filing the returns, one should make sure that the bank accounts are prevalidated and nominated for refund. If not, you might receive a communication from the department informing you about refund failures.

Not just that, these days many taxpayers are also receiving refund failure messages from the department, though they have rightfully prevalidated the bank account and nominated for refund and have also received refund in the same bank account in the previous years. This may be due to PAN not linked to bank account, mismatch in the name in the bank records and name as per PAN or failure to renew customer(KYC norms as per bank).

Ensure that above mentioned things are at place to avoid refund failure

Taxes paid not getting Reflected

Few taxpayers have received notice from the department asking the reason for not paying their taxes though they have paid. This may be due to misquoting of PAN while paying taxes or time lag between the date of payment of taxes and tax payment getting reflected in Form 26AS.

In such cases the taxpayer should seek reprocessing of returns.

Disclosure of Foreign Assets

Individuals who have foreign assets are being sent notices. Either foreign travel information is being used or residential status being traced to unearth taxpayers evading taxes on foreign assets.

If you were working abroad and had a bank account in the country earlier, or received employee stock options of internationally listed companies as you worked for a multinational company, then you would have to justify how you acquired these and why the same wasn’t mentioned in your tax return. Apart from capital gains during sale, even dividend income from these international equities would have to be declared under the Schedule for Assets and Liabilities