Answer

1. F

   Facts

   If you did not file a return or reply to notices, the officer may act even if TDS covered your tax. Showing that tax was fully paid through TDS usually ends with little or no demand.

2. P

   Provisions and law

   • Sec 144, Income-tax Act 1961 (now Sec 271)If you do not file a return or do not comply with notices under Sec 142(1) or 143(2), the officer can assess to the best of judgment after a show-cause notice giving you a date to be heard.
   • Sec 192, Income-tax Act 1961 (now Sec 392)The employer deducts tax from salary at the average rate during the year.
3. A

   Analysis

   Give Form 16, a computation of income and AIS. If total tax on salary of ₹11,00,000 under the new regime is fully covered by TDS of ₹60,000, the addition should be nil. Explain why the return was not filed. Check if AIS shows other income, such as interest, that you also need to include.

4. C

   Conclusion

   1. 1Download Form 16 and AIS for the year.
   2. 2Prepare a simple computation of income and tax.
   3. 3Show TDS covers the tax.
   4. 4Reply on e-Proceedings by the date.
   5. 5File returns every year from now.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.