Got Income Tax Notice? Don’t worry at all. Here is explanation of different section of IT section and how to answer them.
With the shift in technology, IT department will issue communication that looks like notification or a call, however, are implied for info reason. Such info is called ‘intimations’. However, some are a genuine notification or ‘call for action’.
How to Answer Income Tax Notice of Different Section?
One must know the wide importance of such notifications and how he needs to respond. Let us now check some of these communications under different sections and subsections.
Under Section 156
This is issued by the tax department saying that you have to either pay the penalty or fine or whatever other sum that is due.
You should make the payment of the requisite sum in 30 days. If you neglect to pay then you are liable to pay simple interest @1% for every month under section 156 of the Act.
Under Section 139 (9)
Under this section, you will get notice generally after filing IT Returns. This notice just says you have filled a deficient ITR. Defects could be:
- If you’ve picked wrong ITR form
- ITR not filled appropriately or left a required field empty.
- Claim a refund on IT, yet not disclosed your legitimate income.
- If name showed on PAN card is not the same as name filled in return.
You need to react in next 15 days of getting the notice. Sign in to the e- filing portal of the department website. Pick the e-file alternative and fill the answer form to notice 139(9). If you are not able to do so or even get assistance then mail clarification in writing to your nearest Income Tax Officer. If you need more time then send a request in writing and get acknowledgment.
Under Section 131(1A)
If the Assessing Officer is of the view that the assessee has not disclosed his/her income precisely or is concealing actual income, then the AO may issue a notice under this section. A notice under this section suggests that the AO is aiming to start an inquiry or explore the issue to decide the actual income of the assessee.
There is no predefined time within which the assessee is obliged to respond to the notice under this section. You should keep all your record books, statement of records set up. The surveying officer can seize the books or other documents by giving the reason for the same.
Under Section 142(1)
A notice is served under this section if the IT department needs to make prelim inquiry and requires asking about a specific case before beginning an evaluation. The authorities may call upon all documents and details from the taxpayers concerning the specific case under appraisal. You may get this notice in the event that you have not filed your returns on time. The whole motivation behind notification under this section is to ask about the details of the assessee before making any appraisal under the Act.
The assessee must give all documents and details requested under this section. You should present these reports even if you feel they are not significant. You should comply with this notice. If you receive a notice under this section yet have not filed your returns then you must file your returns within the time given in the notice and a proof of the same ought to be submitted alongside the documents.
Under Section 143(1)
This is info as opposed to a notice. This is to illuminate you that your returns have been checked by the department. Now your returns can be ok, or you have deposited tax more than needed or you have excluded some earnings. Altogether, you have to pay more tax. So this implication advises if your returns are coordinating with the department’s estimate or it is more or less.
No issues and nothing to be done if the return filed meets estimates. If you deposited more tax, you will get it back in your account. However, if you paid less, then you need to acknowledge the department’s calculation by visiting the IT Website. You have to pay due to tax within 30 days of issuance of the notice.
Under Section 143 (2)
This is a follow up to the notice issued under section 142(1). This suggests either the AO has not gotten your documents or is not happy with your response. Presently your returns can be subjected to detailed investigation. Through this notice, the surveying officer may demand extra reports in support of deductions, exemptions, reliefs, allowances etc.
Comply with this notice and submit the entire significant document to the department as soon as possible. In case the assessee neglects to conform to this notice then the evaluating officer can take their own decision in light of best judgment appraisal (under Section 144). The taxpayer can be penalized or prosecuted which may expand up to one year with or without fine.
Section 143 (1) (a)
Notice will be issued under this section if-
There is a difference in income or deductions between Form 16 and returns filled. This is the reason you require to be careful when you declare your tax deductions before the beginning of the financial year and after that at the end of the financial year. Any deviation of over 10% isn’t great.
The reasons can be difference in claim for tax rebate under 80C, Sec 24, Sec 80CCD, Sec 80E, Sec 80DD, Sec 80 DDB, Sec 80TTA or Sec 10 Exemptions.
You need to react within 30 days. Simply observe what they are requesting. In case you concur, acknowledge it and give the info. You can transfer related reports on e-filing portal or submit to the nearest IT office.
This is the genuine inconvenience or what we call ‘scrutiny’.
Notice under this section implies that the IT Department has begun investigation your income. This move continues after the initial evaluation of IT returns filed by you.
This implies the Assessing Officer isn’t satisfied or has not gotten records identified with your income tax treatment. He has picked your returns for a detailed review.
You’ll get 2 sorts of notice in this. In the first place, documents or facts are affirmed on one of two points. In the second notice, you can get more information about the IT disparities.
In case the taxpayer neglects to provide details asked for, an assessment without including the taxpayer can be made by the department.
Keep records prepared and organize them. In the event that you require additional time, a written request is obligatory. Keep in mind the hearing/appearing date. On a finding of defects, fine of Rs ten thousand can be enforced. Under section 276 D there can be a punishment of up to 1 year, in serious instances of a willful cover-up of income.
You’ll get this notice if any sort of income does not appear while filing IT Returns. In case the Department believes that some income was not disclosed in ITR he can issue notice under Sec 148.
There is a time limitation to the notices. In the event that the income is 1 lakh or not as much as that, at that point, you can get a notice within 4 years (of assessment year). If that is in excess of 1 lakh at that point you will get a notice within 6 years.
To start with assessee is advised to record returns (if not filled). After that, you can request the purpose behind the notice. This includes testing the reason specified in the notice with documents. The evaluating officer needs to give reason and time allotment to submit a response. Eventually, after the reaction, the Officer passes a written order of whether he is satisfied or assessee is liable or he needs more documents. It might take a few rounds before a good verdict is made.
This is another section incorporated into IT law. In this fiscal year, until July 31, there can be a punishment for not filing the returns. In the assessment year 2018-19, after 31st July to 31st December, the punishment will be Rs 5000. After 31st December, it will be Rs 10000.
You may get this before your refund getting credited. In case you have a past due or tax payable, the IT department will adjust it from current years refund. However, they can’t do as such on their own so they issue a notice under section 245. If they are correct, you can’t do anything. The due sum will be adjusted with refund sum and leftover if any will be paid. Nevertheless, if you have paid earlier, update that on the site so they are notified.
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