Reply To Income Tax Notices
Deliverables - Timeline
Get information by Email
Deliverables
Supporting Response Document
Timeline
2 Days
(from receipt of all documents)
INCOME TAX NOTICE
An Income Tax Notice is a formal communication issued by the Income Tax Department to taxpayers, informing them of a particular issue related to their tax affairs. It can be issued for a variety of reasons, ranging from an assessment of income, discrepancies in tax filings, non-compliance, or additional information required. Receiving a notice doesn't necessarily mean that you are being penalized—it could simply be a request for clarification or additional documents.
Common Types of Income Tax Notices
1. Notice under Section 139(9) - Defective Return Notice:
Issued when the Income Tax Department finds that the income tax return (ITR) filed by the taxpayer is defective (i.e., certain details or information is missing, or there are discrepancies in the return).
The taxpayer is given an opportunity to correct and resubmit the return.
3. Notice under Section 143(1) - Intimation of Processing:
Issued when the Income Tax Department processes the return and either agrees with the filing or identifies any differences (e.g., discrepancies in tax payable/refund due).
It is a routine notice and may either confirm a refund, demand more tax, or indicate no action required.
4. Notice under Section 143(2) - Scrutiny Notice:
Issued if the Income Tax Department wants to conduct a detailed scrutiny of the taxpayer's return, typically due to complex transactions or substantial discrepancies.
The taxpayer must respond to the notice and may need to attend a personal hearing to provide evidence.
5. Notice under Section 148 - Reassessment Notice:
Issued when the Income Tax Department believes that income has escaped assessment, i.e., the taxpayer may have under-reported income or claimed excess deductions.
The notice mandates the taxpayer to file a revised return for the specified assessment year.
6. Notice under Section 156 - Demand Notice:
Issued when there is a demand for the payment of tax, interest, penalty, or any other sum due from the taxpayer.
This could be the result of a delay in filing returns, incorrect tax calculations, or a failure to pay the assessed tax.
7. Notice under Section 245 - Adjustment of Refund:
Issued when the taxpayer has a refund due, but the amount is adjusted against any previous dues. This notice informs the taxpayer of the refund adjustment and the reasons for it.
8. Notice under Section 156 - Demand for Payment:
Issued when there is an outstanding tax demand after the processing or assessment of the return. The taxpayer is required to pay the outstanding tax amount.
What to Do If You Receive an Income Tax Notice?
1. Do Not Panic: Receiving a notice does not automatically mean that you are in trouble. It could be for clarification, missing information, or additional details.
2. Read the Notice Carefully: Understand the section of the Income Tax Act under which the notice has been issued.
Note the deadline for responding or providing any requested documents.
3. Verify the Details:Double-check the details mentioned in the notice, including your PAN, the assessment year, and the nature of the notice.
Ensure that the details in the notice match the information you have filed in your tax return.
4. Respond Promptly: Respond to the notice within the specified timeline. Failure to do so may result in further penalties or actions by the Income Tax Department.
If required, submit the documents or information requested by the department.
5. Pay Any Dues: If the notice demands payment (e.g., a tax demand notice under Section 156), make sure to pay the required amount within the deadline to avoid further interest or penalties.
You can make the payment online through the Income Tax Department’s e-filing portal or through authorized banks.
Important Points To Remember
1. Legitimacy of the Notice: Ensure that the notice is genuine. Always check the official Income Tax Department’s website or verify the notice through the e-filing portal (www.lineuptax.com) or by contacting their helpdesk.
2.Time Frame for Response: Always respond within the time frame specified in the notice. Delays can lead to penalties or additional scrutiny.
Note the deadline for responding or providing any requested documents.
3. Avoid Ignoring: Ignoring a notice could lead to legal action, interest charges, and penalties, and could result in further complications.
Recent Post
Why choose LineupTax ?
10+ years of experience
Economical and Fast
Tech Enabled
Expert Assistance
FAQs
There are many ways in which you can reply to income tax notices. One of the ways is by filing the return electronically, while the other is by filing it manually.
