You may receive a notice for reasons such as: • Mismatch between Income Tax Return (ITR) and Form 26AS/AIS • Non-filing of return • High-value transactions (property, shares, cash deposits, etc.) • Claim of excessive deductions or exemptions • Scrutiny assessment selection • Information received from third parties Receiving a notice does not automatically mean you have done something wrong.

• Carefully read the section under which the notice is issued • Check the compliance deadline • Compare details with your filed return and records • Prepare supporting documents • Respond within the prescribed time through the income tax portal If unsure, consult a tax professional.

Ignoring a notice may result in: • Best judgment assessment • Additional tax demand • Interest and penalties • Prosecution in serious cases Timely response is strongly recommended.

Yes, in certain cases (depending on the type of notice and time limits), you may file: • Revised return • Updated return However, this depends on the specific section under which the notice is issued.

Stock brokers/IA/RA are required to submit: • Monthly/quarterly compliance reports • Net worth certificate • Internal audit report • System audit report • Investor grievance reports • Financial statements Timely submission is mandatory to avoid penalties.

If you have claimed deduction for political donation under Section 80GGC (for individuals) or Section 80GGB (for companies), the department may seek: • Proof of payment • Name and registration details of the political party • Mode of payment confirmation Deduction is allowed only if: • Donation is made to a registered political party • Payment is made through non-cash modes (bank transfer, cheque, digital payment, etc.) • Proper documentation is available Cash donations are not eligible for deduction.

You should keep: • Donation receipt issued by the political party • PAN and registration details of the party • Bank statement showing payment • Confirmation that payment was not made in cash Proper documentation reduces the risk of disallowance. ________________________________________

Yes, if: • Payment was made in cash • The political party is not registered • Supporting documents are missing • There is mismatch in reported information In such cases, the deduction may be added back to income, increasing tax liability.

Major compliance areas include: • Net worth and capital adequacy requirements • Client KYC and onboarding compliance • Anti-Money Laundering (AML) procedures • Periodic reporting to SEBI and stock exchanges • Maintenance of books and records • Investor grievance redressal mechanism • Cybersecurity and system audit compliance Non-compliance can result in penalties, suspension, or cancellation of registration.

Brokers must comply with the Prevention of Money Laundering framework by: • Monitoring suspicious transactions • Reporting STR (Suspicious Transaction Reports) • Maintaining client transaction records • Appointing a Principal Officer for AML compliance Failure to comply may attract regulatory action.