Income Tax Notice

 

TYPES OF INCOME TAX NOTICE ONE CAN RECEIVE

Notice u/s 139(9): Defective Income Tax Return

In this case, Portal identifies a particular Error in filing of Income Tax Return and  also suggest a probable Resolution to rectify the same.

Assessee is given the opportunity to respond within 15 days from the date of Intimation or before it is Assessed. If Assessee didn’t respond within 15 days, then the Return will be rejected by A.O.

The Defect u/s 139(9) can be the wrong ITR filed, missing Information, Incomplete Return etc.

 

 

Intimation u/s 143(1)

After Electronically Processing of the Income Tax Return by CPC, the Income is computed after considering the following Adjustments:

· Any Arithmetical Error

· An Incorrect Claim

· Disallowance of Incorrectly Claimed loss or Expenditure

  • Any Income which has not been included in the Return

Upon successful Processing, Intimation is issued determining the Tax Liability to be paid, refund determined, or No refund or No demand.

 

Notice u/s 143(2)

The Purpose of this Notice is to notify the Assessee, that the Return filed has been picked for Scrutiny. This Notice has to be served to the Assessee within 6 months after the completion of Assessment Year to which it pertains.

The Assessing Officer intends to be assured that you have not done any of the following:

· Understated your Income

· Claimed Excessive Loss

  • Paid Lesser Taxes

The Taxpayer is required to respond to the Questionnaire issued along with the Documents required by the Income Tax Department.

 

 

Notice u/s 148

An Assessing officer may have a Reason to believe that Assessee has not disclosed the Income correctly and therefore has paid lower Taxes or the ITR has not been filed at all. In this case, Officer is entitled to Reassess the Income accordingly.

Before making such Assessment, officer would serve a Notice u/s 148 to the Assessee asking him to furnish the Return of Income.

Then, the Taxpayer is required to respond to the Questionnaire issued u/s 142(1) along with the Documents required by the Income Tax Department.

 

 

 

 

 

 

 

Notice u/s 142(1): Questionnaire

The Purpose of this Notice is to call for the Documents and details from the Tax Payers. The Basic Purpose is to inquire the Details of the Assessee before making the Assessment.

The Time limit to serve the Notice u/s 142(1) is before the end of relevant Assessment year.

 

 

 

Notice u/s 245

Refund Adjusted against Tax Demand:

This Notice is issued when the Tax Refund for an Assessment Year is adjusted against the Tax Demand due from the Tax Payer. The Assessment year of Refund and Tax Demand can be different. There is no limt to serve or send Income Tax Notice/intimation u/s 245.

 

 

Notice u/s 156: Notice of Demand

If any penalty, tax, fine or any other amount is due from the taxpayer to the income tax department then income tax notice u/s 156 is served. Normally this notice is served after the assessment of ITR. The taxpayer can deposit the amount payable within 30 days from the date of the income tax notice. There is no time limit to serve this notice.