This message serves as a crucial reminder for anyone who received a Notice 120(3) regarding their Income Tax Return (ITR). This notice signifies that your ITR contains deficiencies and could be declared invalid if not addressed promptly.
What’s the Issue?
Your ITR is deemed deficient because the financial statements attached lack your signature. This seemingly minor detail violates section 114(2)(a) of the Income Tax Ordinance, 2001, and rule 29 of the Income Tax Rules, 2002.
What Happens if You Don’t Act?
If you fail to respond by the due date mentioned in the notice, your ITR will be declared invalid. This carries two major consequences:
- Penalty: You will be liable to pay a penalty under section 182(1) of the Income Tax Ordinance, 2001.
- Tax Complications: An invalid ITR can create numerous challenges in processing your taxes, potentially leading to delays and further difficulties.
How to Avoid Trouble:
The good news is you can easily rectify this situation by submitting a copy of your signed audited accounts by the given deadline. Make sure they are signed by a qualified auditor to ensure compliance.
Remember:
- Ignoring Notice 120(3) can have significant financial and legal repercussions.
- Taking prompt action to submit the required documents ensures a smooth tax filing process.
- If you have any doubts or require assistance, seeking professional guidance from a tax advisor is recommended.
