The Income Tax Department has intensified its crackdown on individuals who failed to file their Income Tax Returns (ITRs). If you skipped filing your taxes for past years, you may soon receive a notice under Section 148A.
Why Is the Income Tax Department Sending Notices?
Did You Know, The Income Tax Department uses AI-powered tools to match spending patterns with declared income. Even frequent foreign trips or expensive purchases can trigger an inquiry!
The government is using advanced data analytics to detect tax evasion. Officials have identified thousands of non-filers who had taxable income but failed to report it. These notices target individuals who missed ITR filings for Assessment Years (AY) 2019-20, 2020-21, and 2021-22.
How the Government Identifies Non-Filers
The Income Tax Department collects data from multiple sources to track high-risk individuals. Here’s how they identify non-filers:
| Source of Information | Purpose |
|---|---|
| Annual Information Statement (AIS) | Tracks high-value transactions |
| Tax Deducted at Source (TDS) Records | Identifies salaried individuals who missed filing |
| Statement of Financial Transactions (SFT) | Tracks large deposits, property deals, and stock trades |
| Import-Export Data | Identifies businesses evading taxes |
| Bank Transactions | Monitors cash deposits exceeding set limits |
| Credit Card Spending | Flags high expenditures inconsistent with declared income |
If you have high-value transactions in any of these categories but haven’t filed an ITR, expect a notice soon.
What to Do If You Get a Notice?
- Don’t Panic – A notice under Section 148A is just a preliminary inquiry.
- Respond Promptly – Provide a valid explanation within the given time.
- Consult a Tax Expert – Incorrect responses can lead to reassessment and penalties.
- File Pending ITRs – If you missed filing, do it before further action is taken.
Penalties for Non-Filing
| Violation | Penalty |
|---|---|
| ITR not filed, but taxable income exists | ₹5,000 to ₹10,000 fine |
| Concealing Income | 50% to 200% of tax due |
| Delayed Filing | Interest under Section 234A |
Also Read: ITR-1 vs ITR-4: Which One Saves You More Tax?
Final Takeaway
Ignoring tax notices can lead to serious financial and legal troubles. If you have unfiled ITRs, it’s best to act now. The government is getting stricter, and evading taxes is no longer an option. Stay compliant and avoid unnecessary stress!
Disclaimer
The information provided in this article is for general informational purposes only and does not constitute legal, tax, financial, or other professional advice. While every effort is made to ensure the accuracy and reliability of the information, laws and regulations may change, and individual circumstances vary.
Readers are encouraged to consult with qualified professionals or official government resources for personalized guidance regarding their specific situations. The author and publisher disclaim any liability for decisions made or actions taken based on the information provided herein.
