1.Cash Deposits In Savings Bank Accounts
If you deposit Rs10 lakh or more in a saving bank account then bank send that information to income tax department and you did not mention this transaction in your ITR then income tax department can issue notice because it can be Tax Evasion.
What is Tax Evasion: Tax evasion occurs when a person or business illegally avoids paying their tax liability, which is a criminal charge that’s subject to penalties and fines.
2. Mismatch amount between filed ITR and 26AS or AIS
If there is a mismatch between the amount filed in your Income Tax Return (ITR) and the amount reflected in your Form 26AS or Annual Information Statement (AIS), it can lead to various consequences depending on the nature and extent of the mismatch. Form 26AS or AIS is a statement that shows details of tax deducted at source (TDS), tax collected at source (TCS), advance tax, and self-assessment tax paid against your Permanent Account Number (PAN).
If there is a significant discrepancy between the income reported in your ITR and the income reflected in Form 26AS or AIS, the Income Tax Department may issue a notice to seek clarification or additional information. You will be required to provide an explanation for the discrepancy and rectify it if necessary
3.Non-disclosure of Interest Income
If a taxpayer earns interest income on their savings bank account but fails to report it in their Income Tax Return (ITR), the department may send a notice to inquire about the omission. Interest income up to Rs 10000 is tax free u/s 80TTA but above then Rs10000 interest income would be add in taxable income. Interest income up to Rs 50000 is tax free u/s 80TTB ( for senior citizen) but above then Rs 50000 interest income would be add in taxable income.
Also, If there is a mismatch between the interest income reported by the taxpayer in their ITR and the interest income information available with the tax department from Form 26AS or other sources, a notice may be issued to seek clarification or rectification.
4. Failure to Provide PAN
Banks are required to report certain financial transactions to the tax department, and if a taxpayer has not provided their Permanent Account Number (PAN) to the bank, the department may send a notice to the taxpayer to furnish their PAN.