Have You Received Notice From The Tax Authorities?

Written by Gagandeep Arora - Printed on - Date - 3rd Jan 2023

It is time to welcome the new year and new beginnings with a bang. Inspite of filing your tax returns before the due date, you have received a notice from the Income tax authorities. Can be a reason to dampen the spirits of the new year, but there is no need to worry. An individual needs to respond to the notice as a clarification to the query. In this article we will discuss the various reasons for the tax notices.

Reasons For Tax Notices

A tax notice is a written communication from the Income Tax Department to the assessee regarding any problem in the tax return filed by him. There are specific sections under which you may receive such notices, the purpose of such notices should be understood and an assessee needs to respond appropriately to them within the stipulated time. Some of the reasons for which an assessee can receive these notices are -

1). Notice under section 139(9) - Notice For A Defective Return

A Return falls under defective return in case there is tax payable or any information is missing in the ITR filed or the tax return is filed under the wrong ITR form. Choosing the right form as per the income source is a must. There are chances of error or omission which will also attract a notice under defective return. Generally a period of fifteen days is given before the original return is to be treated as invalid return.

2). Section 131(1A)- Inspection Of Income

If the assessing officer is of the opinion that an assessee has concealed income then the assessing officer can send notice under section 131(1A) to assess the accounts of the assessee.For the same books of accounts and other documents of the individual can be impounded. There is no specific time limit to serve this notice.

3). Intimation Under Section 143(1)

Intimation under section 143(1) is a notice which is a processing statement from the Income tax authorities stating that the income, deductions and tax details filed by you are in tune with the records available with the department of Income tax. In case of any discrepancies or mismatch the authorities will reject the claim and reduce the tax refund claimed by the amount of mismatch or will raise the demand. If there is any issue with the processing of the return you can either reply to the notice through the proceedings in the online section in your account or file a rectification return to correct the data in your tax return.

4). Notice Under Section 142(1) - Inquiry Notice before assessment

A notice under this section is served by the authorities to gather information from the assessee, if a tax return has been filed earlier or maybe any documentary proof is required for some specific claims.The notice is issued before the assessment of the return.

5). Notice Under Section 148-Notice To Commence Reassessment Proceedings

After the assessment is over if the Assessing Officer feels that some income has been skipped or concealed by the assessee in the return, then the assessing officer can reopen the case for reassessment and send notice under section 148. But before issuing such notice the officer must have valid reasons and records to justify the same and issuing such notice.

6). Notice Under Section 245- Intimation to set off of demands and refunds

This is an intimation sent by the income tax authorities when the tax refund (full/partial) for an assessment year is adjusted against any tax demand which is due from the taxpayer.

Respond Quickly
These notices are common in nature,but there is no reason to panic if you have received one. Instead, reply to them quickly and contact our tax experts for correct and right advice.