Income Tax Notice
Taxpayer receives an income tax notice requesting specific documentation from them. when an Assessing Officer has reasonable grounds to suspect that the taxpayer’s income has eluded
assessment.
Package Inclusions:
- If you have received an income tax notice, do not become alarmed.
- The Rank Holder CA will handle the case.
Income Tax Notice
Taxpayer receives an income tax notice requesting specific documentation from them. when an Assessing Officer has reasonable grounds to suspect that the taxpayer’s income has eluded assessment.
Package Inclusions:
If you have received an income tax notice, do not become alarmed.
The Rank Holder CA will handle the case.
Income Tax Notice
When a taxpayer submits their income tax return to the department, the department processes the form and may then send the taxpayer various types of notices. These notices may occasionally take the form of an Intimation or occasionally take the form of scrutiny.
Taxpayers may panic whenever they hear about an income tax notification, but there is no need to fear. The notices are always given for a cause.
We must comprehend the notice that the Income Tax Department has sent.
Types of Income Tax Notice
The following are the types of income tax notice:
1. Notice u/s 143(1): Intimation of the return
The income tax department electronically processes our tax returns when we file them. After processing, the department notifies the assesses in three ways:
Tax liability to be paid; refund to be calculated; no refund or demand; yet the amount of loss has increased or decreased
Within a year of the end of the year in which the return was submitted, notification from the department must be received.
2. Notice u/s 139 (9): Defective Income tax return
When processing a return, if the department discovers a flaw, an error, or missing information, it must submit a notification under Section 139(9) to acknowledge the mistake. Department checks the return against the data they already have.
If the response is not filed within 15 days, the return will be deemed invalid
and the defective return must be filed within that time frame.
3. Notice u/s 142(1) – Inquiry Notice before Assessment
The evaluating officer believes that it is appropriate to request further information and documentation when a return is filed and throughout the assessment period. Then, the evaluating officer may do so, and the assesse is required to provide it.
4. Notice Under section 143(2): scrutiny Notice
If the AO is still of the opinion that there is a need to conduct scrutiny after receiving the document in accordance with the notification sent under section 142 (1), the AO may issue the notice under section 143. (2). The AO seeks to ensure that the assessors have not committed any of the following
offences:
underestimated your income, overstated your loss, or paid insufficient taxes It is important to keep in mind that the section under which it will be examined differs from the one under which the notice was issued.
A scrutiny notice may be given up to six months after the relevant evaluation year has ended.
The evaluation of those who have not submitted their income tax returns cannot be scrutinised. In this situation, the AO is to make Best Judgment and determine the tax liability based on it.
When a person has not submitted their income tax return,
The Assessing Officer may conduct an investigation and complete the routine assessment under Section 143(2).
If assesses do not adhere to the rules set forth in this section:
– Best Judgment Assessment under Section 144, or
-Penalized by Section 271(1)(b), which carries a Rs 10,000 fine for each failure, or
– A sentence of up to a year in prison and a fine under Section 276D.
A possible type of scrutiny notice is:
Restricted Scrutiny: In these situations, the Income Tax Department has focused its inspection just on a single area.
For instance, claiming a foreign tax credit or selling real estate.
Comprehensive Scrutiny – Under total scrutiny, all pertinent papers are thoroughly examined.
Manual Scrutiny – In some instances, the examination is carried out in-depth in accordance with standards specified by CBDT.
Notification under Section 148 for Income Avoiding Assessment
If the AO believes that certain earnings have escaped assessment, income has been assessed at a lower rate than required by the authorities, or if disproportionate loss of allowances has been permitted, the income tax department issues a Notice of Income escaping Assessment. In this case, AO is allowed to reevaluate the evaluation for the pertinent assessment year.
The AO is required to depend on strong evidence before beginning processes.
The evaluating officer must act honestly throughout his operations.
5. Notice under Section156- Notice of Demand
The AO must give the assesses a notice of demand that includes the amount due when any interest, tax, penalty, fine, or other sum is due in relation to a decision that has been made.
6. Notice under Set off of refunds against tax remaining payable-section 245
Such transactions are referred to be “inter-adjusted” when the assesses must pay an amount and subsequently receive a refund.
The notification was not issued; rather, it was more of an indication to the assessors.
How to reach Kra Paymall for Income Tax Notice
Frequently Asked Questions
How do I deal with my income tax notice?
Do not worry if you receive an income tax notice; instead, reply to it and give the government the documents and information it requests. submit a corrected return and pay any overdue taxes within the allotted time. It is preferable to have a tax specialist react to the notice on your behalf.
How do I check my tax notice?
You must take the following actions to determine whether a tax notice has
been issued:
- To begin, sign in to the income tax portal[1] by providing your user ID (PAN card), date of birth, password, and captcha code.
- Choose WORKLIST from the top menu.
- Choose “For Your Action” from the menu.
- If you are the subject of any pending notices, they will be listed there.
What is an income tax notice of assessment?
The 1961 scrutiny assessment, also known as the detailed assessment, is covered under Section 142(3) of the Income Tax Act. In this assessment, the taxpayer only receives the warning if there is some uncertainty regarding the income’s authentication or if they have knowledge of income hiding. The purpose of this examination is to verify the truthfulness of the taxpayer’s numerous claims, deductions, and other items included in income tax forms.
How can I check my tax order online?
The following methods are available for checking the tax order online:
- Open the e-Filing Portal and log in[2].
- Click “Service Request” under “My Account” on the menu.
- After that, click “New Request” and choose the “Intimation under section 143(1), 14/16(1)/35”
request category. - Next, select “Submit”.
What happens if I don’t respond to the notice within 30 days?
According to section 143(1)(a) of the Income Tax Act of 1961, if you did not react to the notice within 30 days of receiving the notification, the return of income will be processed automatically. After 30 days, there would be no more chances for modifications.
How can I download my tax notice online?
Go to the website for filing income tax returns and then download the appropriate Income Tax Return form for the specified assessment year. In response to a notice under section 139(9) where the initially filed return was a defective return, choose from the choices that are mentioned after that. Fill in the form’s rectifications and reference and acknowledgment numbers.
How do you know if you have to pay income tax?
For a company or firm, filing an income tax return is required. However, if the income exceeds the basic exemption level of Rs. 5 lakhs, individuals, HUFs, and associations of persons are compelled to file a return of income. For senior persons and extremely senior citizens, there are different income restrictions.
How do I pay my outstanding tax demand?
The following are the online payment options for unpaid tax demands:
- Tax payments can be done using the e-taxes section of the online tax payment site.
- Make the payment referencing head “400”.
- Challan Status: The website[3] allows you to check the status of your payment Challan. The
Form 26 AS statement will also show these payments.
How can I check my tax demand status?
The steps below can be used to determine the status of a tax demand:
- Access the “e-Filing” Portal [4].
- Click on “Answer to Outstanding Demand” under the “e-File” menu.
- This page will display all pending requests. The “View” link is located in the “Response” column.
How do I pay income tax returns after tax filing?
If you have paid all taxes and other obligations, including interest, you can fill out an income tax return. However, if you haven’t, your return is defective and must be corrected by the assessment officer within 15 days of receiving the notice required by section 139(9). In this case, you can pay taxes and file a return in response to section 139. (9).
What is outstanding demand amount in income tax?
The outstanding demand amount for income tax is the amount of tax that has not yet been paid or that was omitted while paying tax.
How do you correct outstanding tax demand?
Take these actions:
- Register with the online tax filing system.
- Choose “Answer to Outstanding Demand” from the “e-File” option.
- Choose the “submit” hyperlink found in the Answer column.
- Choose any of the possible answers, such as:
Demand is accurate.
Demand is only partly accurate.
Contradicting the demand
Demands are incorrect, but they consent to be changed.
Selecting Demand is accurate will prompt you to click the submit button to finish and submit your response.