As per the report, the income tax notices were issued to alleged evaders under Section 138 and 148(A)
The Income Tax department has reportedly sent notices to several tax evaders after reassessing the returns filed. As per updates, several income tax returns have come under the scanner of the I-T department, especially those in which deductions have been claimed for donations made to charitable trusts and political parties.
According to a report in Moneycontrol, the case mainly is related to the returns during FY’19. Based on claims of accountants, the publication adds that “hundreds of notices were issued to salaried individuals from March 20 to June 10 this year.”
Interestingly, the I-T department is reportedly doing this with the help of artificial intelligence (AI) tools.
“Using artificial intelligence, the Income Tax Department has identified people whose ratio of donation against income earned is skewed for the financial year 2018-19,” Moneycontrol quoted Paras Savla, partner, KPB & Associates.
As per the report, the income tax notices were issued to alleged evaders under Section 138 and 148(A). However, in several cases, “only an erroneous deduction has been raised in the notice.” As far as others go, a higher sum of donation has been claimed and hence, based on reassessment, the I-T department has sent these notices.
Based on the claims, the publication adds that in case one has received such a notice from the I-T department, they must respond to it. “One would have to respond to the notice sent under Section 148(A). If the individual has the proof of the donation, then the same can be produced in response. Else, the liable tax along with the penalty mentioned in the notice would have to be paid,” Moneycontrol quoted Karan Batra, co-founder, CharteredClub.com, as saying.