Income tax Notice

Income tax department sends notice on the various occasion like not filing of return,

Mismatch in the records of income, defective return etc. We at eTaxSupport

will provide you our full support in resolving the notice.

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Income tax reply

The Income Tax Department appoints certain officials as Assessing Officer (AO) to verify and investigate the tax paid by the taxpayers. There are many people who try to evade and avoid tax. Without proper scrutiny it's not possible to collect tax from all the taxpayers. Whenever a taxpayer has to be enquired or investigated, notice will be issued by the Assessing Officer specifying the reason for such issue

Income tax reply is sent by the Income Tax Department due to several reasons such as not to file ITR on time, defect of filing return or in other instances. No need to feel fragile if you receive a notice from Income Tax department, all you have to do is to understand the notice and comply with the order.

If you have received a notice, no need to worry you can contact to eTaxsupport and our experts will help you to tackle it in professional manner.

Types of Income Tax Notice

1. Notice under section 143(1)

 

Usually notice cum intimation under section 143(1) is issued to the taxpayer when return is filed. It is just an intimation that the return has been successfully filed. So, there is no need to respond to such notice. However, in certain cases notice under this section may be issued as

  • Demand notice if the tax paid by the assessee shows shortfall

  • Refund notice if the there is excessive tax payment by the assessee

  • Notice in case of arithmetical errors or errors in PAN details

An Assessing Officer cannot issue an intimation under section 143(1) on expiry of 1 year from date of filing return by the taxpayer

 

 

2. Notice under section 142(1)

In order to take a case under assessment, the Assessing Officer shall issue a notice under section 142(1). It is issued in order to investigate a particular assessee's income and return filed. It can be issued before or during the assessment. Through this notice the AO may ask the taxpayer to provide

  • Return of Income if it has not been filed by the taxpayer within the due date

  • Accounts or documents as asked by the Assessing Officer

After submission of all the documents, the AO may not make detailed assessment if he is satisfied with all the documents submitted

3. Notice under section 143(2)

 

If the AO is not satisfied with the documents submitted under section 142(1) he shall issue notice under this section. If a person receives notice under section 143(2) it means that the AO wants to conduct detailed scrutiny. This notice is sent only after issuing notice under section 142(1). The AO may ask to submit proof of all sources of income and details of exemptions and deductions claimed by the assessee. If the assessee does not respond to this notice,

  • Income Tax Department may conduct Best Judgment Assessment u/s 144 or

  • Assessee shall be penalized under section 271(1)(b)

  • Prosecution u/s 276D upto period of 1 year

This notice shall be issued within 6 months from the end of financial year of filing return by the assessee.

4. Notice under section 148

Notice under section 148 is issued to a taxpayer if the Assessing Officer believes that the assessee has escaped tax. This is a notice for reassessment. An Assessing Officer cannot issue notice under section 148 if all the documents are rightly submitted by the assessee and there are no valid reasons to issue the notice. The AO shall record in writing reasons to issue a notice.

  • If the assessee is satisfied with the reasons given by the AO, return must be filed at the earliest

  • If the assessee does not agree with the reasons given, assessee can challenge it with higher officials

The AO cannot issue notice under section 148 after expiry of 4 years if the income is less than Rs.1 lakh. In case the income exceeds Rs. 1 lakh, the time limit shall be extended to 6 years

5. Notice under section 131

This notice shall be issued by the AO in regard to inspection and discovery of documents of an assessee who has concealed his income. The AO shall not be below the rank of Assistant Commissioner of Income-tax, as may be notified by the Board on this behalf. The documents collected under this section cannot be kept under the custody of AO for more than 15 days

6. Notice under section 133

Under this section, AO may ask to provide information regarding names and addresses of members of a firm, HUF, or dealers in stock exchange. Notice issued under section 133 can be to provide information about people mentioned thereof

7. Notice under section 139(9)

An Assessing Officer shall issue a notice under section 139(9) if an assessee has filed a defective return. The assessee will be given a period of 15 days or more as specified by the AO to rectify the defect.

If the defect is not rectified within the given time then the return shall be considered as invalid. In case the assessee rectifies the defect, the AO shall verify it and if satisfied the return shall be considered as valid return

8. Notice under section 156

Assessing Officers demand notice under section 156 if the taxpayer is liable to pay outstanding interest, penalty or fine. The assessee must respond to this notice within 30 days of receiving the notice. Taxpayers can respond to this notice through logging in to the e-filing website. The assessee can opt 4 options

  • Demand is correct

  • Demand is partially correct

  • Disagree with the Demand

  • Demand is not correct but agree with the adjustment

9. Notice under section 245

In any case if refund is payable to an assessee, the AO may set off such refund amount against outstanding tax payable by him. In this notice the AO shall specify the adjustments in refund amount. This is an intimation notice to inform about the changes made rather than a demand notice