Confused about the notices received by the Income Tax Department? We are here for you!
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You shall be surprised upon receiving an intimation/notice from the Income-tax department although your Income-tax return is filed within the due date. At such times, you may get confused and may not be sure about what it means and how to prepare a response to the same. Also, encountering disputes in opinions from tax authorities, litigations, questionable assessment notices may lead to rough times for any organisation. Hence, it is essential to have a credible consultant for assistance.
At ICI, we will track down your notice/disputes/litigations in detail and offer complete support by handling them on your behalf.
After filing Income-tax return, it is processed by the Income-tax Department. While processing the return, if any mistake/discrepancy/error is noticed in the Income-tax return filed, then the same shall be communicated to the taxpayer by way of an income-tax notice.
There are various notices issued by the Department of Income-tax to the taxpayer under different sections of the Income Tax Act, 1961
Notices | Purposes |
---|---|
Notice u/s. 139(9) | If the Income-tax return filed is found to be defective, then notice u/s. 139(9) is issued. E.g., if the return is filed before payment of Self-assessment tax. |
Intimation u/s. 143(1) | CPC processes intimation sent by the Department of Income-tax after the return filed by the taxpayer. |
Notice u/s. 143(1)(a) | It is issued seeking response if there are specific errors/discrepancies or any income is disclosed less/not disclosed in the Income-tax return filed. |
Notice u/s. 143(2) | This notice indicates that the return filed by the taxpayer has been selected for Scrutiny by the Assessing Officer. |
Notice u/s. 156 (Demand order) | After the assessment of the income, if the tax liability is raised, then Demand order u/s. 156 is issued to taxpayer for the balance tax liability |
Notice u/s. 245 | The communication of adjustment of Income-tax refund against Income-tax liability is made with the notice issued u/s. 245. |
The Income-tax department issues notice/orders for the following reasons:
» Errors/mistakes/discrepancies found in your Income-tax returns.
» Incorrect TDS claimed than shown in Form 26AS.
» Any financial transaction found missing in the Income-tax return filed by the Assessee; however, the Department has the knowledge for the same.
» The Assessing Officer may require documents and other details from the taxpayer. For this purpose, he may issue an Income-tax notice asking for such documents/details.
» To carry out scrutiny under provisions of the Income-tax Act.
» For any other purpose, as the Assessing Officer may deem fit.
Yes, you can receive more than one Income-tax notice by the Department for the same Assessment year. For an instance, you had received Income-tax intimation 143(1) indicating demand, and you filed rectification for the same. However, if this gets rejected, then you may get a second Income-tax order u/s 154 for which further clarification is required to be submitted to the Income-tax department.
It is highly advised not to ignore any notice issued by the Income-tax department. Ignoring notice/demand/order issued by the Income-tax department may lead to penalty and prosecution under the Income-tax Act, 1961.
Speak to our experts who shall solve all your doubts.
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