What you should do when the taxman comes knocking

"Knock, knock, open up. You have a notice from the Income-Tax department."

 What you should do when the taxman comes knocking


That's the kind of of alarming notice that can give the average tax-payer some sleepless nights. However, panic not because not all notices mean you haven't paid your taxes and will be penalised. In most cases, a notice may pertain to a routine enquiry or a clarification sought by the assessing officer (AO), reports the Times of India.

Here are some things to keep in mind when you get a tax notice:

Preserve the envelope: The envelope in which the notice is sent is an important piece of evidence as it contains the "Speed Post Number" which provides details on when the notice was served to you.

Check your details:Sometimes, the notice may be meant for someone else who shares your date of birth or name. Check the notice to see if it contains your PAN card details.

Make copies :Make some copies of the notice, just in case you need it.

Check the sender's details: The notice must have the officer's name, designation, signature, stamp, income tax ward and circle among others. If you receive the notice by email, check to see if there is a document identification number.

Seek professional help:If the notice is a simple demand for additional tax payment, an individual can handle this on his/her own. However, if the issue is more complicated than that, seek professional help to organise your response so that the correct details are provided.

Read the rest of the Times of India article here.

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Updated Date: Dec 20, 2014 17:01:08 IST