New Delhi, July 14 -- The recent spate of notices received by taxpayers makes it evident that transparent reporting with due compliance is sine qua non-a non-negotiable. It is important to understand why these notices are issued and how to avoid them.

Under existing law, a scrutiny notice is issued to audit the filed tax returns, ensuring that income has not been understated, the losses claimed are justified, and that taxes have been fully paid.

The scrutiny guidelines issued by tax authorities every year identify triggers such as search or survey cases, institutions receiving Section 80G donations, high-value transactions, tax deducted at source (TDS), investigations, Enforcement Wing intelligence, and recurring legal or factual issues...