Income Tax Related Notices

Types of Income Tax Notice

Notice u/s 142(1) – Inquiry

This notice is addressed to the assessee when the return is already filed and further details and documents are required from the assessee to complete the process.This notice can also be sent to necessitate a taxpayer to provide additional documents and information

Notice u/s 139(1) – Defective Return

An income tax notice under Section 139(1) would be issued if the income tax return filed does not contain all necessary information or incorrect information.
If tax notice under Section 139(1) is issued, you should rectify the defect in the return within 15 days.

Notice u/s 143(1) – Intimation

The income tax department sends this notice seeking a response to the errors/ incorrect claims/ inconsistencies in an income tax return that was filed.If an individual wants to revise the return after receiving this notice, it must be done within 15 days.Else, the tax return will be processed after making the necessary adjustments mentioned in the 143(1) tax notice.

Notice u/s 143(2) – Scrutiny

An income tax notice under Section 143(2) is issued if the tax officer was not satisfied with the documents and information that was submitted by the taxpayer.Taxpayers who receive notice under Section 142(2) have been selected for detailed scrutiny by the Income Tax department and will have to submit additional information.

Notice Under Section 148

The officer may have a reason to believe that you have not disclosed your income correctly and therefore, you have paid lower taxes.Or the individual may not have filed his return at all, even if you must have filed it as per law. This is termed as income escaping assessment. Under these circumstances, the assessing officer is entitled to assess or reassess the income, according to the case.Before making such an assessment or reassessment, the assessing officer should serve a notice to the assessee asking him to furnish his return of income

Notice u/s 156 – Demand Notice

This type of income tax notice is issued by the Income Tax Department when any tax, interest, fine, or any other sum is owed by the taxpayer.All demand tax notice will stipulate the sum which is outstanding and due from the taxpayer.

Notice Under Section 245

If the officer has reason to believe that tax has not been paid for the previous years and he wants to set off the current year’s refund against that demand, a notice u/s 245 can be issued.However, the adjustment of demand and refund could be done only if the individual has been provided proper notice and an opportunity to be heard. The recipient has to respond to the notice is 30 days from the day of receipt of the notice.If the individual does not respond within the specified timeline, the assessing officer can consider this as consent and proceed with the assessment.Therefore, it is advisable to respond to the notice at the earliest.

Documents required to reply to an Income Tax Notice

The Documents are required to vary with the type of Income Tax notice that is served to the taxpayer. The basic documents needed to reply to an income tax notice would be:

• The Income Tax Notice copy.
• Proof of Income source such as (Part B ) of Form 16, Salary receipts, etc.
• TDS certificates, Form 16 (Part A)
• Investment Proof if they are applicable.

But it is always better to review the notice from the Tax experts only. Therefore, once the Income-tax notice copy is uploaded, the tax experts will review the notice and come up with the best solution. You can send a copy of the Income Tax Notice and queries to sales@etaxhub.in