How to avoid notices from Income Tax Department - Chhota CFO Blog

“Prevention is better than cure”, Well ! All of us have heard this quote very often, taking preventive measures to avoid notices from department is definitely a better way-out than curing the defects with consequences. Planning your taxes well will elucidate the matter than thinking to evade taxes. “Tax Planning is better than Tax Evasion” Gone are the days where income tax department would not cross-verify the transactions undertaken by you to a greater extent . Now, every transaction is cross verified as the department has integrated database which allows them to cross verify almost all the transactions. Income tax department collects various information through various ways like Annual Information Return (AIR), Statement of Financial Transactions (SFT), Centralized Information Branch (CIB), TDS/TCS Statement, Securities Transaction Tax (STT), CBDT has also entered into MOU with various entities for exchange of information. Considering this, the need to ensure that the information filed with the income tax department is accurate is essential. Otherwise, the interrogation of the department would be a free call and would require the department to issue notices