Fake Notices from the Income Tax Department: How to Identify Scam Notices from Fraudsters image

Fake Notices from the Income Tax Department: How to Identify Scam Notices from Fraudsters

Receiving an income tax notice can be highly stressful, but it's crucial to remain vigilant, as not all such notices are genuine. Fraudsters might send fake income tax notices to scam you. The Income Tax Department issues tax notices for various reasons, such as if your income tax return (ITR) is selected for scrutiny or if there is an outstanding tax demand. However, there are specific guidelines and protocols that the department follows when sending these notices.

Understanding these guidelines can help you spot a fake notice. Carefully reading any tax notice you receive is essential, as scammers often rely on inattention to trick you. Avoiding a panic reaction and scrutinizing the notice can help you identify fraudulent attempts.

A tax expert shared a recent incident where a client received emails and messages claiming to be from the Income Tax Department, pressuring the client to click a link and make immediate tax payments to avoid penalties. These messages used official language and alarming threats to create urgency. Fortunately, the client remained cautious and reported the matter to the expert.

Guidelines Followed by the Tax Department for Sending Notices

  1. DIN Number: Since October 1, 2019, all notices must include a Document Identification Number (DIN), which is computer-generated. This measure, mandated by Circular No. 19/2019 issued on August 14, 2019, ensures transparency and accountability, according to Ramakrishnan Srinivasan, former Chief Commissioner of the Income Tax Department.
  2. Visibility on the e-Filing ITR Portal: Most notices are sent electronically and can be verified on the e-filing ITR portal. You can cross-check the notices under different tabs of the portal, such as:
    • 'e-File' tab: Check 'view filed return' for intimations sent for the respective year.
    • 'Pending Actions' tab: Look under 'e-Proceeding' and 'Compliance Portal.'
  3. Official Email Domain: Notices are sent from official email IDs ending with '@incometax.gov.in'. These emails are uniquely formatted, starting with the city, followed by the designation and ward number. For example, the email ID of Joint Director (Systems) P. Krishnamoorthi is bangalore.jd.systems3.cpc@incometax.gov.in.
  4. Direct Notices by Tax Officers: In some cases, such as dispute resolution panel (DRP) hearings, notices are sent directly to the taxpayer's registered email address from the official domain ID. These emails will never contain payment links and are intended only to inform the taxpayer.

How to Verify the Authenticity of a Tax Notice

You can verify any communication from the Income Tax Department, including notices, orders, summons, and letters, using the e-filing ITR portal. Check for a DIN, a unique identifier present in all communications issued after October 1, 2019. Here’s a step-by-step guide:

  1. Visit the ITR e-filing portal: Go to Income Tax e-Filing Portal and click on 'Authenticate notice/order issued by ITD' under quick links.
  2. Verify Using PAN or DIN: You can verify the communication using PAN by entering the PAN, document type, date of issue, and mobile number, or by using the DIN and mobile number, which will be validated by an OTP. If the communication lacks a DIN, it is invalid, and no action is needed.

How to Spot a Fake Income Tax Notice

Fake notices typically contain payment links, which the Income Tax Department never includes. Genuine notices explain why they were issued and direct taxpayers to use the e-filing ITR portal’s e-pay tax option for any payments. Scammers aim to extract money by including payment links in their notices or emails.

Only authorized officers can issue genuine tax notices, and these will always come from official email IDs. If you receive a notice from a personal email ID, it is fake. Notices from the Central Processing Centre (CPC) or the National Faceless Authority are always from designated email IDs and do not disclose the officer’s identity to the taxpayer.

Popular posts from this blog

  New Tax rules to came into effect from April 01, 2024; all you need to know The start of the new financial year on 1 st  April 2024 is always noteworthy in terms of personal finances because it signifies the implementation of the majority of budget’s income tax proposals. Furthermore, additional changes are also applicable that might have an effect on people’s personal finances. Finance Minister made these announcements during this year’s budget speech. Here are some of the most significant adjustments that you should be aware of, including increased basic exemption limits. 1. New Tax Regime is the default tax regime  In addition to the existing tax slabs, a new tax slab was introduced in Budget 2020. Change is the default adoption of the new tax regime. The tax rates under this regime are lower than the old tax regime. Its goal is to expedite the tax filing process and encourage more people to file under the new tax system which has lower tax rates but fewer exemptions and deduction
Read more

How to e-Pay Income Tax Online?

Image
  How to e-Pay Income Tax Online? Here's a step-by-step guide on how to make tax payment on the Income Tax Portal  without logging in: Step 1: Navigating to 'e-Pay Tax' Section Visit the Income Tax Portal On the homepage, locate the 'Quick Links' section on the left side.  Click on the 'e-Pay Tax' option or use the search bar to find 'e-Pay Tax'. Step 2: Enter PAN/TAN and Mobile Number Enter your  PAN  and re-enter to confirm it.  Provide your  mobile number  and click 'Continue'.     Enter the  6-digit OTP  received on your mobile number and click 'Continue'.   Step 3: Select the correct Assessment Year and Payment Type Select the first box labelled as  ‘Income Tax’  and click  ‘Proceed’     From the ‘ Assessment Year ’ dropdown, select ‘ 2024-25 ’ Under the ‘ Type of Payment ’, select ‘ Self-Assessment Tax (300) ’ and click on ' Continue '. Step 4: Enter Tax Payment Details  Enter the payment amounts accurately under the rel
Read more
Image
New EPFO rule for you: No need to request for PF transfer on changing jobs Did you know? From now on, you won't have to request the transfer of provident funds when changing jobs. Starting April 1, a major change has been implemented for subscribers of the Employees’ Provident Fund Organisation (EPFO). Automatic transfer system The EPFO has rolled out a system that enables the automatic transfer of an employee's PF balance when they switch employers. Under the new system, employees whose Universal Account Number (UAN) is linked and fully compliant with Know Your Customer (KYC) requirements will find their PF balances automatically transferred to their new employer's PF account. This automatic transfer is triggered by the first contribution made by the new employer. What is UAN? UAN is a 12 digit unique number provided to each employee contributing to the EPF. The number, generated and assigned by EPFO, is authenticated by the Ministry of Labour and Employment. This number r
Read more