💡 Received an Income Tax Notice for Unexplained Deposits? Here's What to Do Via Flickr:
If you've received a notice from the Income Tax Department regarding large or suspicious deposits, don't panic—but don’t ignore it either. Here's a clear guide to understanding and responding effectively:
📩 1. Why Did You Get the Notice?
Under Section 68 or Section 69, the Income Tax Department may issue a notice if the deposits in your bank account don’t align with your reported income in the ITR.
📂 2. Documents to Justify Deposits
Be ready with:
Salary slips or business invoices
Gift deeds or loan agreements
Bank statements
Any other legitimate source proofs
🖥️ 3. How to Respond Online
Head to the Income Tax e-filing portal, log in, go to “e-Proceedings”, and upload your response along with relevant documentation before the given deadline.
⚠️ 4. Risks of Ignoring the Notice
Ignoring the notice can result in:
60%+ tax penalty on unexplained amounts
Scrutiny assessments or reassessments
In severe cases, legal action or prosecution
🧾 5. Smart Practices to Stay Safe
✔️ Keep financial transactions documented ✔️ Disclose all income streams in your ITR ✔️ Avoid structuring or splitting large deposits ✔️ Consult a professional for high-value transactions
🛡️ Prevention is better than penalty. Stay compliant, stay stress-free.
