Income Tax Notices

When we receive Income Tax notices, we often get scared but all these notices have a reason of issuance. Some income tax notices just give us information like intimation under section 143(1), some warrant information for inquiry under 142(1) and some communicate that an audit is required to be done etc.

Type of Income Tax notices

  • Notice u/s 143(1) – Intimation

Intimation under section 143(1) is intimation for ITR processed by the income tax department to the taxpayer. It communicates arithmetical mistakes or changes to be done.

  •    Notice u/s 139(9) – Defective Income Tax Return

Defective Return is the type of return for which a person receives a notice u/s 139(9) if the IT Department has found any discrepancies or mistakes or any missing information in ITR. Once you file your income tax return, the details provided by you in the ITR are cross-verified and processed. The department compares the details provided by you with the information that is available to them.

An assessee is expected to correct the defect within 15 days and if it to correct the defect, would be treated as an invalid return.

  •   Notice u/s 142(1) – Inquiry Notice Before Assessment

Section 142(1) tax notice is the notice that is usually served, in a case where the return has been filed, to call for further details and documents from the assessee and to take a particular case under assessment. This notice can also be sent to require him to file his return where he has not yet furnished it.

This notice is generally issued when information is missing from the taxpayer’s end and an inquiry is sought to be made. The taxpayer is given a reasonable opportunity of being heard for any material that may have been gathered on the basis of such inquiry.

  • Notice u/s 143(2) – Scrutiny Assessment Notice

It applies to a case where the return has either been filed by the assessee himself (Self Assessment) or in response to a notice u/s 142(1). This notice is served by the Assessing Officer in order to ensure that the assessee has not understated the income, computed excessive loss or underpaid the tax. It may require him to:

  1. Be in physical attendance or represent before the Assessing Officer (AO) to clarify facts; or
  2. Make written submissions for providing details; or
  3. Produce evidence to substantiate the income/profits/gains/losses.

This notice is issued within a period of 6 months from the end of financial year in which the return is filed.

Process for Response to Income Tax Notices

  • Step 1

    Send a scanned copy of income tax notice through email

  • Step 2

    Visit our office for a personal guidance regarding income tax notices with our expert

  • Step 3

    Get a customised quote depending on your notice

Frequently Asked Questions

A tax notice is issued by the income tax department when the Assessing Officer finds any default in the Original/Revised Income Tax Return. A tax payer can get notice from Income Tax Department for many reasons under various sections.

 

No, every tax notice does not demand for additional tax. Notices are issued under different sections and every section has some different demand.

Yes, responding to tax notice is necessary in every case otherwise you have to face the consequences as stated afterwards.

If no action taken by you within 30 days of receipt of the notice u/s 245, the outstanding demand as on that date will be considered for adjustment against your refund.

Non payment of tax demand attracts penalty and prosecution as per the provisions of the Income tax Act,1961 along with proceedings for recovery listed in Chapter XVII-D of the Income-tax Act, 1961.

You are also liable to pay simple interest at the rate of one per cent for every month or part of a month for the period of default in accordance with section 220(2) of Income Tax Act, 1961

To know your Jurisdictional Assessing Officer details -> Please log on to https://incometaxindiaefiling.gov.in and click on “Know Your Jurisdictional AO” under “SERVICES” menu.

To know the detail procedure for filing online outstanding demand response-> Please log onto https://incometaxindiaefiling.gov.in->Go to ‘Help Tab’ -> ‘Response to Outstanding tax Demand’