How To Check Income Tax Notice?
- Posted By SuperCA
- On 26 June
The Income Tax Department can issue notices for various reasons like failure to file ITRor any errors at the time of filing ITR and many others. In such cases, the income tax department needs access to additional documents or information of the applicant.
It may feel frightening or surprising to receive a notice from the department. However, the taxpayer must remain calm and should try to understand the contents of the income tax notice, the nature of the income tax notice, the order of the requestor in the notice and then should take proper steps to comply.
Let us understand what an income tax notice is and what are the different types of income tax notices that can be issued by the income tax department.
Various Income Tax Notices
|
Type of Income tax notice |
Description of the income tax notice |
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Notice under section 143(1)-Intimation |
One of the widely received income tax notice is notice under Section 143(1)-Intimation. This income tax notice is issued in order to get a response to any type of errors or incorrect claims that were made while filing an ITR. The taxpayer can revise his ITR within 15 days of receiving this income tax notice. If not, then the ITR will be processed by making some essential changes as present in Section 143(1). |
|
Notice under Section 142(1)-Inquiry |
If an applicant has already filed his ITR, then he will receive this income tax notice in order to provide all the other necessary documents that are needed to complete the process. It is possible to issue this notice in order to mandate the taxpayer to give additional information or documents. |
|
Notice under Section 139(1)-Defective return |
This income tax notice will be issued in case the filed ITR does not possess all the necessary or correct information. Once this income tax notice has been issued, the applicant will have to rectify all the errors within 15 days. |
|
Notice under Section 143(2)-Scrutiny |
This income tax notice will be issued if the documents and information submitted by the applicant is not satisfactory, then the tax officer can demand for a detailed scrutiny . Those who receive this income tax notice will have to submit the required additional information. |
|
Notice under Section 156- Demand Notice |
This income tax notice will be issued in case the taxpayer owes some interest or tax or fine. This notice will specify the amount of tax that is due from the side of the taxpayer. |
|
Notice under Section 245 |
This notice will be issued by the income tax department when the tax officer wishes to set off the refund of the current year against that demand if he has a solid reason to believe that the applicant’s previous year’s taxes are unpaid. The receiver of the notice will have to respond to it within 30 days of receiving the notice. If a taxpayer fails to respond within the stipulated time period, then this will be taken as consent by the assessing officer and he will proceed with the assessment. |
|
Notice under Section 148 |
If in any case the tax officer believes that the correct income has been listed in order to pay less taxes(known as income escaping assessment), then the assessing offices is allowed to assess or reassess the total income of the applicant and before making any such assessments, the officer will issue an income tax notice while asking him for his details for the return of income. |
How is an Income tax notice served?
The laws for the service of an income tax notice have been laid down by the income tax department by delivering a copy to the concerned person in any way that is mentioned under the Act. The ways to serve an Income Tax Notice are given below:
Recipient of the Notice: Generally, the income tax notices are directly addressed to the recipient but incase the recipient is a minor, then the notice is addressed to the guardian. The incorrect descriptions of the assessee can be rectified but if the status and the identity of the assessee are entangled, then the mentioned name on the ITR may become material.
Service by Post: An income tax notice can be served via a registered post. The process to serve an income tax notice can start by accurately addressing, pre-paying and posting the notice by a registered post. It is possible that the delivery is made to the office or an employee or an agent or any authorised person.
Service by Affixture: If the defendant is not ready to sign the acknowledgement or if the officer can not find the defendant, then the office will have to attach a copy of the notices or summons on the outer door or any noticeable part of the house where the defendant lives or carries out his business.
HUFs and Partnership Firms: The income tax notices can be served on the person who is or was the manager of the HUF. In case the particular person is dead then the income tax notice will be served to all the people who belonged to the firm. And income tax notices related to the income of the firm can be served on anyone who was a former partner of the association or those members of the association which is assessed to be taxed.
Closed Business: If there is a closed business, then the assessing officer will serve the notice on that person whose income will be assessed. In case of a group of people or a firm, the notice can be served to any of the members who were a part of the firm when it was dissolved.
What to do if you receive an Income Tax Notice?
Once a taxpayer receives an income tax notice, then he/she should follow the steps listed below:
- Once a taxpayer has received an intimation notice, the taxpayer has to respond to it within 30 days of receiving the income tax notice.
- In case the taxpayer fails to respond within 30 days of receiving the income tax notice, then the ITR will be processed once some necessary changes are made to it by the department.
- On receiving the notice, the taxpayer must cross-check the details like anime, address, and PAN Card Number.
- Also, it is important to cross-check the assessment year mentioned in the notice and the e-filing acknowledgement number.
- The taxpayer can file revised returns if he has made any mistake while filing the original ITR. Once, the taxpayer opts for revised returns, then he has to file it within 15 days.
- The taxpayer can file for the rectification return if he finds an error in the order that has been sent by the IT Department.
- On page-2 of the notice, the details for the reason of issuing the income tax notice will be present. It will also depict the difference between the income mentioned in the ITR and in form 16/16A/26AS.
- In case the intimation notice asks for additional tax amount from the taxpayer, then it needs to be treated as a notice of demand.
- When the taxpayer receives this notice, he has to reply to it within 30 days in order to avoid any interest that is levied after the expiration of the given 30 days. A penalty may also be levied by the assessing officer.
Conclusion
It can be said that Income Tax Notices are important but not frightening. One should calmly try to understand the notice and comply with its needs accordingly. It is also better to perform the tasks stated in the notice as per the stipulated time limit.
