I'm an NRI living in Singapore, and yesterday I received an email stating that there's a notice from the Income Tax Department regarding my recently filed ITR. When I logged into the e-Filing portal, I saw that my return had been selected for scrutiny.
This is the first time I've received an Income Tax Department scrutiny notice, so I'm naturally a bit anxious. My return included rental income from a property in Hyderabad, interest from my NRO account, and capital gains from selling listed shares. I also claimed credit for the TDS deducted by the bank and tenant.
I'm not sure if this is a routine verification or if I've made a mistake somewhere. The notice asks me to respond within the specified timeline and provide certain supporting documents.
Has anyone here gone through a scrutiny assessment recently? What kind of documents were you asked to submit, and how long did the process take? Did you handle it yourself through the portal, or did you seek professional assistance?
I understand that every case is different, but hearing about real experiences would really help me prepare.
Mine involved rental income rather than investments.
The notice asked me to provide the rent agreement, proof of rent received, municipal tax receipts, and interest certificate for my home loan because I had claimed a deduction.
I was initially worried, but my tax consultant explained that scrutiny doesn't automatically mean there's a problem or a penalty. Sometimes returns are selected for verification of specific claims or information.
If anything in the notice is unclear, I'd recommend reading it carefully and responding only to what's requested.
I received a scrutiny notice last year after reporting capital gains from mutual funds.
In my case, the department requested supporting documents like the broker's capital gains statement, bank statements showing the transactions, and copies of the TDS details. I uploaded everything through the Income Tax e-Filing portal within the deadline mentioned in the notice.
After that, there were a couple of follow-up queries, but nothing too complicated. The important thing was responding on time and making sure the documents matched the figures reported in my return.
Every scrutiny is different, so the documents requested will depend on the issues identified in your notice.
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I handled my scrutiny response myself because the questions were fairly straightforward.
Before submitting anything, I compared the figures in my ITR with Form 26AS, AIS, and my bank statements. I found one small mismatch in interest income, so I explained it in my response and uploaded the relevant documents.
If your notice involves multiple income sources like rental income and capital gains, keeping all supporting records organized will make the response much easier.
Also, don't ignore the deadline mentioned in the notice. If you're unsure how to answer, getting professional advice can be worthwhile.