Income Tax Notice
An income tax notice is a written communication sent by the Income Tax Department to a taxpayer alerting an issue with his tax account. The notice can be sent for different reasons like filing/ non-filing his/ her income tax return, for the purpose of making the assessment or to ask the certain details etc. When a notice is sent by the Income Tax Department, the taxpayer has to act on the notice and get the matter resolved with the tax authorities.
Types of Income tax Notice
The Income-tax department issues notices for various purposes under the Income-tax Act, 1961. These are listed below:
Income-tax Intimation under section 143(1) – It is an intimation sent by the Income-tax department after the return is filed by the taxpayer and processed by CPC.
Income-tax notice under section 143(1)(a) – It is issued for seeking response if there are certain errors/inconsistencies in the Income-tax return filed.
Income-tax notice under section 139(9) – This Income-tax notice is issued if the Income-tax return filed is defective. For example, the Income-tax return is filed before payment of self-assessment tax.
Rectification under section 154 – If the taxpayer has filed his Income-tax return and there is some mistake, such as TDS credit is not given, then rectification under section 154 is required to be filed.
Income-tax notice under section 245 – This Income-tax notice is issued to communicate the adjustment of Income-tax refund against Income-tax demand.
Income-tax notice under section 142(1) – This Income-tax notice is issued to seek certain documents and details from the taxpayer.
Income-tax notice under section 148 – This Income-tax notice is issued when the Assessing Officer has a valid reason to believe that the income of the taxpayer has escaped assessment.
Income-tax notice under section 156 – This Income-tax notice is issued for payment of demand after Income-tax assessment is completed and order is passed.
Income-tax Notice under section 143(2) – If Income-tax notice under section 143(2) is issued, it means that the Income-tax return has been selected for scrutiny by the Assessing Officer.
Process of Handling the Notice
When you receive a notice under any of the afore-mentioned sections, the following steps should be taken –
1. Read the notice thoroughly to find out why it has been sent
2. Check the basic details on the notice to ensure that the notice is meant for you. The notice should contain your correct name, PAN Card number, mobile number, email ID, etc. to authenticate that it is sent to you.
3. Find out the discrepancy in your income tax return which caused a notice to be served, if any.
4. Respond to the notice within the stipulated time period to avoid penalties and prosecutions.
5. Take expert help.
1. The Income-tax notice copy
2. Income source proof such as Form-16 (part-b), salary receipts, etc.
3. TDS certificates, Form-16(part-a), etc.
4. Investment proofs if applicable
Frequently Asked Questions
EXC -001 means that you have done a transaction which is beyond that permission of Income Tax Act. It is for cash transactions exceeding INR 10 lakh in a month
Yes, a salaried person also gets income tax notice. The notice u/s 143(1) is an intimation which is sent by ITD to every taxpayer. However, you can receive other income tax notices if IT has reasons to believe that income has been concealed by you or on any other grounds.
If any notice has been issued by ITD, then it will be delivered at your registered address by post. You can check notices received by you through income tax portal but remember not all the notices can be checked through portal, for all notices enquiry, you can visit ITD and ask your query there.
Yes, income tax department can issue notices for current account transactions as well, if it has a reason to do so.
The communication of proposed adjustment u/s 143(1)(a) of the Income Tax Act, 1961 refers to any information by the department that they are proposing some adjustment against refund claimed by you in income tax return. Such adjustment could be in respect of any outstanding demand of previous assessment years.
The Income Tax Department issued discrepancy in notice u/s 143(1) and i discrepancy can be favourable or not.If any demand raised is correct then pay the same.If any refund is of INR 100 or more then IT will pay you certainly.
If any mistake is apparent from record, you can file rectification u/s 154 (1) correcting mistakes: Click on ‘e-file’, and choose the ‘Rectification’ option from the drop down list.
- A notice u/s 143(2) for scrutiny assessment can only be issued upto a period of six months from the end of the financial year in which the return was furnished by you.