INCOME TAX NOTICE
You may get worried if you get a notice from the income tax department. You can get a tax notice for many reasons. These could include not filing income tax return (ITR) on time, calculation errors, not reporting income correctly or even claiming excessive losses.
Let us assist you in complying with IT notices:
Types of Income Tax Notices
The income tax department may send either of the following types of notices to taxpayers depending on various criteria. These notices are as follows :–
- Notice under Section 142(1):- Inquiry Before Assessment and Regular Assessment
Notice is served u/s 142 (1) in following two cases.
- If the officer requires additional information and documents pertaining to income tax returns.
- If the return has not been filed but the officer wants the return to be filed. In case of no response to the notice served a penalty of INR 10,000 or prosecution for up to 1 year or both might be leived.
- Notice sent under Section 139(9) :-Notice for defective return If a defective income tax return is filed, notice under this section will be served. Defects in ITR might occur due to missing information, use of the wrong ITR form, incomplete return, etc. There is period of 15 days to respond to the notice. In case of no response to the notice served, your ITR would be rejected.
- Notice under Section 148:- Assessment or Reassessment NoticeThis notice is sent in cases where there is a reason to believe that a taxpayer has filed his ITR on a lower income or not filed when he was mandated by the law.
- Notice sent under Section 156 :- Notice asking to make payment to the department for any tax or interest or penalty to be paid.This notice is sent in cases where any type of demand like penalty, fine, tax or any other amount which the taxpayer is supposed to pay to the income tax department is outstanding. This notice is also called the notice of demand
- Intimation under Section 143(1) :- Notice issued when return is processed After filing and verifying of ITR, ITR is processed online by the income tax department. Post this initial assessment, the tax department sends an intimation to all the taxpayers u/s 143(1).
- Notice under Section 143(2) for scrutiny assessment u/s 143(3):- scrutiny notice.This Notice is issued with the motive to check that the taxpayer has not understated any income or shown excessive loss or has paid lower tax. This notice is also known as scrutiny notice. After acknowledgement of this notice, taxpayer should respond to the questionnaire issued by the income tax department and submit all the additional documents requested.
- Notice under Section 131:Validity & Response of Summons Issued If tax-payer is concealing or trying to conceal his income or a part thereof, a notice under this section is served. Through the notice, an enquiry for the books of accounts of the taxpayer and an investigation into the taxpayer's income may be done.
- Notice under Section 245:- Intimation notice u/s 245 is served to take confirmation from assesse for offsetting the pending tax to be paid for any of the previous years from the refund of the current year.This notice u/s 245 of the Income Tax Act is served if it is believed that taxpayer have not paid taxes in the previous FY where he/she had a tax liability and the tax refund of the current FY can be used to pay off the tax liability.
