Notice !! Notice !! Tax Notice !!

Written by Gagandeep Arora - Printed on - Date - 29th Aug 2023

Receiving a notice from Income Tax Authorities can be an intimidating experience, and can cause a wave of uncertainty and worry.Upon receiving Notice the first and crucial step is to remain calm and understand that notices can be sent for various reasons such as discrepancies in reported income, unreported transactions or even random assessments.

Steps To Be Taken After Receiving A Notice

• Stay calm and understand the notice.
• Timeliness is the key in responding to an Income tax notice.
• If notice’s language seems complex or if you are unsure about how to proceed consider seeking advice from a professional or a chartered accountant.
• There are different types of notices according to which it is important to provide necessary documents which one should get ready.

Different Types Of Notices

To avoid confusion let us understand different types of tax notices-

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.

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.

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.

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.

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.

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.

Tax Notices can cause panic but our tax experts are there to assist you in all ways.