Submit supporting documents for unexplained deposits to avoid penalties; maintain proper records for compliance.
This infographic guides taxpayers on responding to income tax notices for unexplained deposits. Notices are issued under Section 68 or 69 if deposits don’t match reported income. Taxpayers must submit income records, gift deeds, loan agreements, or business receipts via the e-filing portal. Ignoring notices can result in reassessment, penalties up to 60%, and prosecution. Maintain records and disclose all income sources to prevent issues.