E-Filing of Income Tax Return Online 2023-24
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Income Tax Notice - An Overview
Different Types of Income Tax Notices Issued
No Request, No Refund Notice: When the income tax department discovers no errors on the taxpayer’s filed tax return, this notice is furnished. The IT department has only informed that ITR is being handled and that there was no tax demand or refund.
Refund Notice: If the assessee has paid more tax than their obligation, they will be served with a refund notice informing them that their excess payment would be reimbursed to their bank account
Demand Notice: This demand notice will be given to demand the taxpayer to pay the tax owing within 30 days if the income-tax department discovers any gap in your tax payment after the computation procedure. Apart from this multiple notices are provided to the taxpayers.
Types of Income Tax Notice
| Type of Notice | Description |
|---|---|
| Notice u/s 143(1) – Intimation | This is one of the most commonly received income tax notices. 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 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(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 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. |
| 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.The notice issued for this purpose is issued under the provisions of Section 148. |
Documents Required to Reply to Income Tax Notice
Different documents are required depending on the type of income tax notification sent to the individual. When replying to an income tax notice, the following paperwork is required.
A copy of the income tax notice
Evidence of source of income, such as Form 16’s Part B, pay stubs, etc
TDS certificates and, if appropriate, Form 16 (Part A) Investment Evidence.
Checklist for Income Tax Notice
- The taxpayer has 30 days from the date the notice is delivered to respond after receiving the intimation notice required by Section 143(1) of the Income Tax Act, 1961
- Income tax returns will be completed with the necessary adjustments if the taxpayer doesn’t answer within the allotted period without giving them a chance to object
- The taxpayer should verify the name, address, and PAN number listed in the notice after receiving it
- The assessment year that is given must also be double-checked, and the e-filing acknowledgement number must be confirmed
- Only when the taxpayer committed an error in the initial ITR filing may revised returns be filed. The revised return has to be filed in 15 days
- Only when the taxpayer discovers a flaw or inaccuracy in the order issued by the Income Tax Department may a rectification return be filed
- The intimation notification must be regarded as a notice of demand under Section 156 if it requires the taxpayers to pay an additional tax amount
- The taxpayer must respond to the demand within 30 days of receiving the notice in order to avoid penalties from the assessing officer as well as a monthly interest rate.
When Does a Person Get an Income Tax Notice?
TDS Calculation Error
TDS mistakes are one of the most frequent issues that lead to income tax notices. An employer or deductor submits the TDS reports late or incorrectly, which may result in receiving an income tax notice.
The ITR Disparity
This notice is sent to explain the difference if the discrepancy is with the amounts reported in the returns. Differences that arise as a result of the person failing to record specific income, such as interest on FDs. The deduction was reported under the incorrect section. The information provided by the person is lacking.
Regarding Document Requests
The income-tax department may occasionally need certain supporting paperwork for the filed tax return. as soon as you get this.
When Tax Returns Are Not Filed
The assessee who forgot to file the ITR may be reminded by serving the notice. There is a ₹5000 fine for late tax submissions. The unpaid taxes will also accrue interest at the rate of 1% per month starting on the due date.
Investments in Spouse’s Name
To avoid paying taxes, many people opt to purchase assets in the names of their partners, children, or other close relatives. In this context, the term ‘assets’ refers to all types of investments, including real estate, homes, fixed deposits, mutual funds, bonds, debentures, etc. Assume you purchase mutual funds in your wife’s name. Any income you get from these mutual funds is also regarded as your gross income under Section 64 of the Income Tax Act.
Large Value Transactions
The corporation must notify the income tax authorities of large value transactions.
It includes,
- Deposits of cash into a bank account totaling at least ₹10 lakhs in a calendar year transactions using the credit card totaling at least ₹2 lakh
- Mutual fund investments of at least ₹2 lakh purchase of debentures for at least ₹5 lakhs within a year
- Selling or acquiring an asset worth at least ₹30 lakhs
Not Disclosing The Assets
The assessee must pay wealth tax at the rate of 1% of the total asset value if the value of all assets possessed by them exceeds ₹30 lakhs. Here, the asset consists of benefits from the Section 143 income tax notification (1) The income tax division conducts an initial evaluation of all submitted returns and notifies taxpayers of the findings of such an initial assessment.
What Should You Do if You Get an Income Tax Notice
- The taxpayer must respond to the intimation notice under Section 143(1) of the Income Tax Act of 1961 within 30 days of the day the notification was delivered
- Your ITR will be processed with the appropriate revisions if you don’t react within the allotted time without giving you the chance to object
- The taxpayer should double-check the name, address, and PAN number listed in the notice after receiving it
- The evaluation year mentioned and the e-filing acknowledgment number should also be double-checked
- Only in cases where an error was made in the initial ITR filing may a revised return be filed. You have 15 days to file your revised return after choosing to do so
- You can only file a rectification return if you discovered a flaw or inaccuracy in the order that the income tax agency sent
- You can grasp the purpose of the notice’s issuance on the second page of the document. Additionally, it displays the variance between form 16/16A/26AS and the revenue reported on the filed return
- The intimation message was generated by a computer, thus there is a chance for error or misappropriation. So, when the notice arrives, the taxpayer need not become alarmed
- If the intimation notice requests that the taxpayer.
Penalty for Non-compliance With Income-Tax Notice
If the taxpayer does not respond to a notification sent to the person under Section 142(1), Section 143(2), or a direction given under Section 142(2A), they will be subject to a penalty of ₹10,000 under Section 272A for each infraction.
Penalty for Non-compliance With Income-Tax Notice
To avoid penalties, you should immediately respond to income tax notices. If you are unaware of the procedure and need expert guidance then reach out to tax experts from Easebis. We can always help you respond to income tax notices easily.
- Initially, an expert will get in touch after your request
They will clarify all your queries
Subsequently they will respond to the income tax notice with appropriate documents. - Reach out to experts at Easebis to solve income tax notices right now!
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Frequently Asked Questions (FAQs)
It is not mandatory, but if the Taxpayer wants to record the manually approved LUT to be available in online records, he can furnish it with the online application.
After successful filing, the system will generate ARN and acknowledgment. You will be informed about successful filing via SMS and Email, and you can also download the acknowledgment as a PDF.
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No. GST registrations cannot be cancelled without filing returns. Taxpayers must first complete the filing of GST returns. Then, the taxpayer must submit form GSTR-10 (also known as Final Return) to apply for cancellation of GST registration. The time window for cancellation is around 1-2 weeks.