Checklist for Income Tax Notice
Income Tax Notice
Consultation for income tax notice response from a Tax Expert and revised return filing.
Income Tax Notice
The Income Tax Department sends notices for various reasons such as failure to complete income tax returns, any errors when completing forms, or other instances where the tax department requires any additional documents or information.
There is nothing scary or shocking about the notification. But the taxpayer must first understand the notice, the nature of the notice, the applicant’s order in the notice, and take compliance measures. We provide a comprehensive program for family and business services to assist them in maintaining compliance. In the event that an income tax notice is received, contact the AK Tax Specialist to understand the income tax notice and determine the course of action.
Let’s understand the different types of notices or warnings issued by the Tax Department.
Types of Income Tax Notice:
Notice u/s 143(1) – Intimation: This is one of the most commonly received income tax notices. The income tax department sends this notice seeking a response to the errors/ incorrect claims/ inconsistencies in an income tax return that was filed. If an individual wants to revise the return after receiving this notice, it must be done within 15 days. Else, the tax return will be processed after making the necessary adjustments mentioned in the 143(1) tax notice.
Notice u/s 142(1) – Inquiry: This notice is addressed to the assessee when the return is already filed and further details and documents are required from the assessee to complete the process. This notice can also be sent to necessitate a taxpayer to provide additional documents and information.
Notice u/s 139(1) – Defective Return: An income tax notice under Section 139(1) would be issued if the income tax return filed does not contain all necessary information or incorrect information.
If tax notice under Section 139(1) is issued, you should rectify the defect in the return within 15 days.
Notice u/s 143(2) – Scrutiny: An income tax notice under Section 143(2) is issued if the tax officer was not satisfied with the documents and information that was submitted by the taxpayer. Taxpayers who receive notice under Section 142(2) have been selected for detailed scrutiny by the Income Tax department and will have to submit additional information.
Notice u/s 156 – Demand Notice: This type of income tax notice is issued by the Income Tax Department when any tax, interest, fine, or any other sum is owed by the taxpayer. All demand tax notice will stipulate the sum which is outstanding and due from the taxpayer.
Notice under Section 245: If the officer has reason to believe that tax has not been paid for the previous years and he wants to set off the current year’s refund against that demand, a notice u/s 245 can be issued. However, the adjustment of demand and refund could be done only if the individual has been provided proper notice and an opportunity to be heard. The recipient has to respond to the notice is 30 days from the day of receipt of the notice. If the individual does not respond within the specified timeline, the assessing officer can consider this as consent and proceed with the assessment. Therefore, it is advisable to respond to the notice at the earliest.
Notice under Section 148: The officer may have a reason to believe that you have not disclosed your income correctly and therefore, you have paid lower taxes. Or the individual may not have filed his return at all, even if you must have filed it as per law. This is termed as income escaping assessment. Under these circumstances, the assessing officer is entitled to assess or reassess the income, according to the case. Before making such an assessment or reassessment, the assessing officer should serve a notice to the assessee asking him to furnish his return of income. The notice issued for this purpose is issued under the provisions of Section 148.
Income Tax Notification Service
The Income Tax Act, 1961 provides for the provision of notice, summonses, orders, and any other communications by delivering or transmitting a copy to a person in any manner authorized under the Act. Here are the various ways in which the Income Tax Notice is issued.
Recipient of Notification: Income Tax Notices are directed at the individual but if they are intended for a minor child are directed at the caregiver The incorrect description of the test is usually corrected but in the case where the inspector’s condition is stuck. Identity of the examiner, the name stated on the return face may be tangible.
Postal Service: Income tax notification service can be processed by registered mail. Section 27 of the General Provisions Act 1897, stipulates that work must be commenced with proper speech, prepaid payment, and the sending by registered mail. This submission can be made to an address, employee, agent, or any other authorized person.
Attachment Process: If the respondent refuses to sign the consent or if the officer is unable to obtain the respondent, the office must attach a copy of the summons or notice or application order to the external department or any other visible part. Of the residence where the respondent resides or conducts business activities.
HUFs and Cooperative Firms: If an officer receives a deduction for any HUF the record may be recorded by the inspecting officer and notices may be given to the person who was the HUF manager. If the person concerned dies, notice will be given to all the former seniors of the firm or other People’s Organization, notices relating to the salary of the firm or organization may be given to any former employees or former members of the organization. That is a tax consideration.
Closed Business: When a business is closed, the auditing officer must serve as a notice to the person whose salary is under probation. In the case of a firm or a group of people a notice will be given to any members who were part of the firm at the time of suspension. In the case of a company, notice will be given to the CEO or Director.
Documents required to respond to Income Tax Notice
Documents are required to differ from the type of Income Tax notice given to a taxpayer. The basic documents required to respond to the income tax notice will be:
- A copy of the Income Tax Notice.
- Proof of the same source of income (Part B) of Form 16, salary receipts, etc.
- TDS Certificates, Form 16 (Part A)
- Proof of Investment if applicable.
But it is always best to review a notice from the Tax Experts only. Therefore, once a copy of the income tax notice has been uploaded, tax experts will review the same and come up with the best solution possible. Based on this you can request the required documents.
Income tax checklist
Step: 1 – After a notice under Section 143 (1) has been adopted by the Income Tax Act, 1961 the taxpayer must respond within 30 days from the date on which the notice was issued.
Step: 2 – If the taxpayer fails to respond within the stipulated period then Income Tax Returns will be processed with the necessary adjustments without giving any opportunity to the taxpayers.
Step: 3 – Once the notice has been received the taxpayer must check the name, address and PAN number, which is stated in the notice.
Step: 4 – Similarly, you are required to verify the specified test year and verify the e-application number.
Step: 5 – Updated refunds can only be included if the taxpayer has made a mistake in the actual completion of the ITR. If the taxpayer chooses to review the refund must be lodged within 15 days.
Step: 6 – Reimbursement may only be lodged if the taxpayer has found any errors or omissions in the system submitted by the Tax Department.
Step: 7 – On page 2 of the issued notice you can understand the reason for the notification being issued. It also shows the difference in income stated in the refunds of that file and Form 16 / 16A / 26AS.
Step: 8 – If the notification requires taxpayers to pay the additional tax amount, the claim notice must be regarded as claim notice / s 156.
Step: 9 – Upon receipt of this notice of need the taxpayer must respond within 30 days to avoid! % Interest per month from the expiration date of 30 days and the penalty is re-imposed by the inspecting officer.
Frequently Asked Questions
The response to the Income Tax Notice must be answered within 15 days of the information submitted by the inspecting officer. In order to expand, a written request can be made to the local testing manager.
Notice 139 (9) is sent to the inspecting officer if the ITR filed with the taxpayer is defective or incorrect the office will provide a proper description of the defect and a remedial solution.
If the AO is of the opinion that the taxpayer is withholding revenue, he / she will receive notice / s 131 (1A). This notice is proof that the AO is initiating an investigation or investigating the matter.
Section 245 is a warning and this notice refers to the full or partial refund of a taxpayer.